Saturday, May 10, 2025

We're winning the tariff war with China but we've pushed them into a corner...

 

 

Watch the whole vid if you can but to summarize? Xi is in trouble and facing factions within the CCP that want him gone. The Chinese people have reverted to their traditional "low consumption" ways. Chinese factories/businesses are closing without paying workers. Layoffs are widespread. The housing market is getting crushed and people are losing big on homes that bought just a few years ago. Youth unemployment is crazy high, college kids are graduating to unemployment. Middle aged people (didn't know this about China) are locked out of jobs because they're over 35. Many are worried about societal breakdown. "Left over women" are worried about their futures and think that they'll never have a family. The list goes on.

China's leadership is in a rough spot because of their own past behaviors.  Manufacturers are running to Vietnam, Mexico and other lands.  Chinese leadership is trying to save face by demanding that the US lower tariffs but they have a track record of delaying negotiations till a new President is elected (happened in the first Trump term....he knows better now).

My worry?

They typical.

Internal problems at home mean that you want the focus outside at an enemy everyone can rally around.

That means activity around Taiwan ramps up dangerously or worse they actually make a run at the island NOW.  Not much more we can do to damage their country (except block the straits but they would probably consider that almost a direct attack on their homeland which would further starve their economy and MIGHT lead to a limited nuclear confrontation) so why not?

Forget Chinese propaganda.  We're winning but we might have acted too late which might lead to unintended consequences of the kinetic kind.