Showing all posts tagged tariffs

In Cadence

Cadence of Conflict: Asia, December 16, 2019

Author SymphonyPosted on

China is desperately grasping for straws. While German parliament is planning to ban Huawei against the will of their head of state, Chancellor Merkel, a Chinese ambassador sends a message that “there will be consequences”—when diplomatic channels go to the head of state, not parliament. The Chinese ambassador is like a dog barking up a tree; German parliament doesn’t care what the Chinese ambassador says. But, in China different branches of government don’t matter because that’s just a “silly Western thing”. So, the Chinese don’t know how German government works because the Chinese presume that Germans lie as much as the Chinese do.

Moreover, the Chinese Communists have overlooked one blaring flaw—if Huawei isn’t controlled by China’s government, that would make it the only entity in China not subject to passive-aggressive threats under pain of organ harvesting. Moreover, if Huawei were the independent company China’s government claims it is, China’s government wouldn’t be so defensive of Huawei being banned from Germany.

China has many weaknesses, self-contradicting diplomacy being the least. Its labor force is shrinking. Its economy is much more dependent on exports than America’s. Its tech sector is even more dependent on importing American-made components. Tit-for-tat tariffs don’t favor China in that regard. The Chinese don’t spend as much on their military as America does, regardless of the hype from State-run Chinese news outlets. And, it doesn’t own a very big piece of the pie when it comes to US Treasury bonds—the greatest liquidation threat China could make there is to offer a temporary discount price to willing investors. The cost would be China forfeiting any leverage it had by owning such a small part of America’s debt, while America’s economy might skip two beats at most, then nevermore.

Then, we have the anti-Trump camp. Many economists who haven’t a clue where wealth comes from despise America’s president. Everything needs to pay for itself, otherwise it will die in a suicide cult of bankruptcy. Maybe NATO shouldn’t be in Germany, maybe it should, but the answer—one way or the other—will only surface if NATO requires Germany to pay for its own national defense. Bowing down to China may have made a few American companies rich—regardless of making a few million Americans poor—but it was never going to last long. Even though China took American money and started bullying their neighbors, those who profited from those greedy companies in particular are angry. But, most Americans aren’t fooled anymore.

Trump played his cards well, and he’s still got plenty of chips left to ante up for many rounds to come. That isn’t good news if you’re a member of the Chinese Communist Party, hoping to help the party dominate America.

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In Cadence

Cadence of Conflict: Asia, December 2, 2019

Author SymphonyPosted on

Opinions on Asia aren’t just flying, but swarming the Pacific. Hong Kongers vote against China in an unmistakable slap to Beijing’s face, then Beijing blames the US—because Beijing still thinks that voters only vote how the government tells them to. And, everything is all America’s fault anyway, right?

It took a day of silence for Beijing’s media machine to figure out how to spin the election. Beijing accused Hong Kong’s dissent on violence. But, that doesn’t hold since last week’s election went uninterrupted. Yet, Beijing sticks to the same script.

A commentator predicts that Hong Kongers don’t want independence—even though they already declared independence on October 4. Perhaps Doris Lam’s article on Channel News Asia was an attempt to tell Hong Kongers what they should want. Or, it could have been an attempt to tell Beijing to think that Hong Kongers don’t want what they want. Either way, it is a delusional olive branch in the form of a typical long-worded think piece. There is a growing trend of commentators who make their articles longer when they know that few readers will accept their opinions.

After Trump signs two laws about Hong Kong—one to define an autonomous region as autonomous, the other to stop exporting police tools for riot-control—Beijing calls it “interference”. Then, Trump drops tariffs on China because good ole Benjamin is hard to argue with. Yet, Beijing wants more. Now, as in Chinese business negotiation, China wants to change the deal after everything has been agreed to. They want even lower tariffs in Phase One.

Great Britain wants UN access to Xinjiang.  China wants the world to believe Xinjiang is happy, an Islamic utopia; new documents prove otherwise. China also faces a food shortage, but a good marketing effort is underway for investment in Chinese farming. Stopping any possible abuse of Uyghurs in Xinjiang is interference in Beijing’s opinion, but accepting foreign money to build better farms isn’t. Perhaps Beijing will call it interference if the rest of the world does not invest in Chinese farms.

Taiwan’s election is fast approaching. Though Tsai Ing-Wen, the pro-democracy incumbent president, leads in the polls, many Taiwanese are scared that there are too many voters in the old, beaten-down generation for her to win a second time. Older Taiwanese, like many Chinese, have been so dominated by East Asia’s shame culture that they truly believe that “bigness” always wins and therefore they must vote for politicians who will surrender to China. Younger Taiwanese have seen this older generation get its way so many times, even polls can’t keep them from being scared. But, as John Maynard Keynes said, “Men will not always die quietly.” Few things drive voters to the polls like fear of dying at the hands of politicians who want to surrender. Tsai Ing-Wen is set to win by an even greater margin than she did in her first term—and everyone has something to say about it.

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In Cadence

Cadence of Conflict: Asia, September 16, 2019

Author SymphonyPosted on

China is running into one of the problems of Communism; once the government controls a company, what that company buys is fair game in treaty negotiations. China’s government owns a lot of Chinese companies. The world already knows this, but Trump is the first president to figure it out.

Neither Trump nor Xi are attempting any kind of long term trade deal. Xi will only accept a deal where China can grow enough to eradicate the English language from Western culture and the Magna Carta is forgotten, in which case a trade deal wouldn’t be necessary anyway. Trump will only accept a trade deal in which that can’t happen.

No deal is anticipated by either. Both are vying for time and ways to milk money away from the other to fund their own goals, which are already known, though not everyone has figured them out because not many people want to. We’re on a collision course with war and no one wants to admit that.

Delaying the October 1 tariffs because 1. the Chinese premier asked for it and 2. because of the 70th Anniversary celebrating the Chinese Communist Party will only embolden the Chinese Communists. The Chinese love parades, and if they think America respects their parades, they will think it proves that they are invincible. This is a part of Chinese thinking Americans struggle to understand.

Equally, the Chinese struggle to understand Trump. In his Tweet announcement, where he delays the tariffs, but also reminds everyone how bad they will be just two weeks later—it’s a mind game that Beijing can’t grasp. Even reading this article won’t help the Chinese get wise to how much they are being played. The only reason they are so easy to play is because they make it so easy by refusing to abandon their Confucian values. Ironically, those are the very values they want to impose on the rest of the world by Sinicizing the rest of the world.

So, mid-October has become the big date. That’s when Trump slaps more tariffs on China, and that’s when Taiwan is expected to finalize its purchase of 66 brand-new, shiny, American F-16Vs.

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In Cadence

Cadence of Conflict: Asia, June 10, 2019

Author SymphonyPosted on

Chinese rhetoric spiked over recent weeks. They made threats. Trump made threats. They made more threats. Trump and Xi are BFF, just like Xi and Putin, but Xi and Putin are BFF-er. Now, we move toward quiet action. If China stops exporting “rare earth metals” to the US, the US would simply get them from somewhere else. “Rare” means many countries can get them, but few actually do because China does it so much.

The US is selling several tanks and tank-buster rockets to Taiwan. Beijing isn’t happy—about the $2 Billion in weapons sales to Taiwan, but also because of the people who publicly express memory of what happened 30 years ago at Tienanmen Square.

Around the time Taiwan’s primaries finish, the US launches its first Ford-class carrier in October, larger than a Nimitz. It still has a year of training and won’t be commissioned until 2022.

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In Encore

Encore of Revival: America, June 10, 2019

Author SymphonyPosted on

One of the best-kept secrets in America is that tariffs discourage imports; if we raise tariffs, imports go down. Another best-kept secret is that if imports go down, domestic jobs go up. These two secrets are so well-kept that not even Senate Republicans know. They think that the same amount of imports will keep flowing in, even with tariffs. They think tariffs will not make consumers want to buy American-made goods again.

Even better-kept is the secret that tariffs discourage certain things in the country that makes the goods. When threatened with tariffs if “irregular” immigration wasn’t stopped their side of the border, Mexico suddenly stopped illegal immigration previously said to be unstoppable. This comes as such a revolutionary surprise, perhaps we should consider that threatening tariffs on the sun could stop global warming! Tariffs seem capable of doing things no one imagined, after all.

Another well-kept secret is that America’s government has its need to follow rules. Long, long ago, we all knew that the government has to play by certain rules. But, somewhere during the Obama years, we seem to have forgotten. Impeaching a president doesn’t remove him from office; the House impeaches, but the Senate has to hold a trial before a president can be removed. Clinton was impeached and he stayed in office. Apparently Nancy Pelosi’s voters didn’t know that. So, she explained it to them. With all the well-kept secrets in the country, one has to wonder: Why didn’t “Nervous Nancy” Pelosi just try to impeach Trump, then act surprised that he stayed president? She might have gotten more votes that way. Such lying theatrics wouldn’t have worked ten years ago, but times are changing!

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