President Tweet goes nuts on China trade – No one is surprised

by  Jim W. Dean, VT Editor   … with Russia Today,  Moscow

A chill is in store for US-China relations

[ Editor’s Note: Trump took to twitter once again to play the twit. He threatened to stop trade with all those doing business with North Korea – an economic act of war not only on China, but the American people. This is what you get with an ex-reality TV show host for president – a guy who makes it up as he goes.

I will say again, as I have many times already, we have a Twilight Zone situation here with a president that is literally a major national security risk. And no, I am not kidding. I am not the only one who thinks so, but among those who will say so publicly.

When Trump put his anti-Russian blustering and fake Moscow threat on the front burner, via his threatening EU energy policy with potentially sanctioning those companies involved in the pipeline deals in process now, we saw that if he would do this to an EU ally, he was capable of worse silliness when dealing with non allies.

EU countries and companies had insisted on partial ownership of the new Russian pipelines to share in a good slice of the long-term economic benefits. They also wanted more secure supply routes to protect against disruptions, like those created by the US’ and NATO’s violent coup in Ukraine and the installation of a criminal oligarchy to run the country that quickly used its transit pipeline to blackmail Russia, while defaulting on the loans that had kept Ukraine afloat.

It would not be an exaggeration in claiming Trump’s announced trade cut off with China as a coup against the American economy. This also shows his staff has no control over him. We need them to threaten to resign en masse if he does not stop his childish but megalomaniac tweets in the morning, but I expect them to do nothing.

The man is incapable of personal embarrassment. Can you all imagine 3.5 or 7.5 more years of this, the damage that can be done? I can’t think of any crazy thing he is not capable ofJD ]

Jim’s Editor’s Notes are solely crowdfunded via PayPal[email protected]

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China has been buying US Treasuries with its trade surplus, becoming a long-term financier of our huge debt

–  First published  …  September 04, 2017

As US President Donald Trump threatens to end his country’s dealings with North Korea’s trade partners, a closer look at the substance of the president’s latest Twitter-delivered policy plan reveals the grave damage it would do to the US economy. 

In another bizarre series of tweets, Trump labelled North Korea “an embarrassment to China” and took aim at allies South Korea, accusing Seoul of trying to ‘appease’ its northern neighbors. The threat of ending trade relations with “any country doing business with North Korea” once again raises the prospect of a potentially-disastrous trade war between the US and China.

China receives 90 percent of the goods in North Korea’s $2.83 billion-a-year export trade, making it “North Korea’s only economic backer of any importance,” according to Nicholas Eberstadt, senior fellow at the American Enterprise Institute.

According to the Observatory of Economic Complexity, North Korea has the 119th largest economy in the world, with China leading India, Pakistan, Russia, Thailand and the Philippines as their largest trade partner. It’s not known how the prospect of further sanctions will impact North Korea.

While Pyongyang imports most of its food and energy supplies from its neighbor, China’s imports from North Korea are mostly made up of seafood, textiles and the minerals. Coal briquettes are Pyongyang’s top export, providing the government coffers with $951 million per year.

The latest UN sanctions imposed on North Korea target its key exports including coal, iron, iron ore, lead, lead ore and seafood.

According to the Council on Foreign Relations, the secretive state’s trade with China rose nearly 40 percent this year compared with the same period in 2016, this despite a noticeable cooling of relations between Beijing and Pyongyang.

China also provides the vast majority of food aid. Since 1995, China, along with Japan, South Korea and the US, have provided more than 75 percent of food aid to North Korea. As relations with all other food aid contributors has deteriorated, only China’s contribution has remained consistent.

It’s feared that any move by the US to cut off trade relations with China, the third-largest destination for its goods and services, would precipitate a global economic meltdown. More immediately, however, it’s forecast that a trade embargo would have a catastrophic impact on the US labor and retail markets.

According to the US-China Business Council, the two countries’ trade relationship is said to support roughly 2.6 million jobs across a number of industries in the US. In total, the two countries traded $578 billion-worth of goods in 2016.

In comparison, Forbes reported that trade between the US and India, North Korea’s other main trading partner, is worth a total of $68 billion. There is also a significant trade imbalance between the countries.

Last year, the US imported $462 billion in Chinese goods and exported $115 billion in goods to China, according to the Census Bureau at the US Department of Commerce.

China also owns an estimated $1.3 trillion in US Treasury bills, notes and bonds, making it the number one investor among foreign governments. US domestic investors, including individuals and corporations, as well as Federal and local government, make up two thirds of all holders of Treasuries.

According to The Economist, any attempt to not repay their Treasuries holdings to China – by default, or in this instance, a sweeping embargo – would result in “cataclysmic consequences for the economy.”

The confluence of events on the Korean peninsula may be Trump’s chance to correct what he has long seen as an unfair trading arrangement with China, a gripe which he made a central pillar to his unlikely run to the presidency in 2016.

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16 Responses to "President Tweet goes nuts on China trade – No one is surprised"

  1. Ian Greenhalgh, Managing Editor  September 5, 2017 at 12:41 pm

    Global Research is a disinfo site.

  2. JohnZ  September 5, 2017 at 12:28 pm

    Trump’s schizophrenic trade policies are creating a disaster. Not long ago Trump signed an agreement to allow China to begin importing chicken and beef into the U.S. So now this buffoon is complaining about trade?
    America has entered into the Twilight Zone. the only thing missing is Rod Serling standing in front of the TV camera with a cigarette in hand asking for our approval of this next offering. dee dee dee dee…….

  3. Peter Johnson  September 5, 2017 at 8:39 am

    I think the intent is to acheive by other meanswhat they couldn’t get by renegotiating the trade deficit.

    If something unpleasant labelled “Made in North Korea” were discovered in a container coming from China, then prudent security measures would have to be taken. Searches could be increased, for example. If this resulted in increased costs and long delays, then that would certainly be preferrable to the possible results of lax security.

    The result would be to increase the cost of imports from China, and thus repayriate some jobs, without violating any trade agreements.

    • JohnZ  September 5, 2017 at 12:24 pm

      How do you increase the costs of imports, particularly from China? By tariffs? The result is that China would place tariffs on U.S. made goods and a trade war begins or worse. Just consider how the southern states reacted to unfair tariffs.
      The question is this: are Americans willing to work for a $1.00/hour sewing clothes, making tools, house hold goods, along with 12 hour days and no health benefits, no safety concerns and no rights?
      Nearly every hi tech item is made in China or South Korea. Wal-Mart’s shelves are filled with Chinese made items.
      We don’t even make TV sets anymore. Toasters? Nope. Microwaves? Nada. How about that new Skill saw you bought at the local home improvement store?
      Americans simply can’t compete with the labor market overseas. Inflation, high insurance costs, high cost of health insurance, shorter working hours and no benefits are the new norm. Try to find a job that offers 40 hours /week.

    • Peter Johnson  September 6, 2017 at 9:57 am

      John Z:

      You increase the cost of imports by holding up shipments due to security concerns. You receive “intelligence” that there is a bomb on a ship heading to Long Beach and you divert it to Guam or Puget Sound or wherever and search every container and it takes 4 months to do so.

      China can’t cry to the WTO because it’s not a tariff It’s security.

      Eventually the guys who make that Skil Saw you are talking about can’t sleep at night and move it to a new factory in Tenessee.

      If you have the Mexico wall made, you do something similar there so they move the Skil Aaw factory to tenessee and not Tijuana.

  4. JohnZ  September 5, 2017 at 6:26 am

    Does anybody remember NAFTA and what it did to Americans jobs? American car companies are sending their car production to Mexico and Canada. Last spring Ford offered to buy out 14,000 mid level executive jobs. America’s debt is $20 trillion and climbing as congress continues to kick the can down the road promising ever more debt with increased spending. Billions more for military spending while America hands over billions to israel.
    America’s financial problems are of no one else’s fault but its own. Out of control spending using money printed out of thin air by the Fed which is also responsible for the over blown stock market prices, while America continues to spend another trillion on wars in the middle east after the $7 trillion already spent.
    Is it any wonder America is on the verge of economic collapse? And yet the buffoon continues to blame others such as China, which is only looking after its own interests while America has nearly a thousand military bases across the globe ,starts wars in the middle east, supports a world wide terrorist organization and its government is corrupt, evil and with out moral compass.

    • JohnZ  September 5, 2017 at 6:38 am

      The American Society of Civil Engineers has rated America’s infrastructure a D+. Crumbling roads, airports badly in need of upgrading, unsafe bridges ready to collapse at any time, sewer and storm drain systems that need upgrading; the entire lot is falling apart and America spends trillions on war overseas. It spends billions on useless, non working weapons such as the F-35.
      America has lost its production capability and now is only capable of producing weapons of mass destruction which it sells to terrorists.
      America’s problems are that which it created by itself. No one else can be blamed. The destruction began when congress passed the Federal Reserve Act along with the creation of the IRS. It continued when Americans realized they can vote themselves largess in the form of welfare , government paid jobs, contracts and the creation of a giant bureaucracy that is now out of control.
      America flounders around the world starting wars of aggression all the while it’s financial foundation is crumbling beneath it. Very soon, the foundation will give way and America will join other nation states in the dustbin of history.

    • David Odell  September 5, 2017 at 6:58 am

      Those crumbling bridges have nice new cameras with solar panels to catch drivers going a little too fast. We can always finance our opulence by punishing ourselves to death. Watch out John, if I can make a profit by your punishment, I have to consider Billies college debt slavery.

    • JohnZ  September 5, 2017 at 12:29 pm

      I’m reaching for my driver’s license officer….don’t shoot me!

  5. CharlieBravo  September 4, 2017 at 9:38 pm

    @helpingmind
    It’s not China economy it’s the US ‘capital’ economy. Most profit in the end empowered the USD albeit with a lost of domestic jobs.
    Much like how people preaching about stopping usage of ‘war spoil’ oil products it’s also unrealistic to try barring chinese consumables product as it keeping the low wage households to have some affordable items.
    If you suggests changes try look for a solutions as well.
    And no since Trump elected all i can see he is whipped into submission even as he complained about it.
    Calls for a coup or assassination against him will not work. He’s just a face of the ruling entity. The swamps shouldn’t be drained It has to be buried.

    • David Odell  September 5, 2017 at 6:46 am

      The reality for the Korean peninsula is that they have been under christian invasion constantly. The first came with the book in one hand, got kicked out, then returned with the cannons on ships in the other hand, and that leads us to today. The carnage was inexcusable and once again, the result is a mess. An evangelical voting base locked and loaded returning to NK was easily predictable. No religion requires forceful conversion, and when it does, it reveals itself as a tool for conquest. Stopping “missions” and promising not to attempt conversion would be a great first step. The ‘great leader” would fizzle out over time, just by opening the relations. The effect of the internet is obvious, even when censored. Open communication is an unstoppable force of good. To not attempt it, is also revealing.

  6. Jim W. Dean, Managing Editor  September 4, 2017 at 8:40 pm

    NK has shown the way to the negotiating table. Stop the joint military exercises, open a negotiation about normalizing relations and the testing will stop. Do you really think that Trump did anything in his life to prepare himself for being President? His bring so many military men in showed he was clueless at evaluating those situations, so he simply off loaded civilian control to generals in suits. That said, they seem more reasonable than he does.

    The ripple effect on what he proposed would effect the whole world, a sledge hammer approach with surgery is needed. Say your prayers that someone does not spoof NK to think there is an incoming missile attack that gets him to fire his nukes, where then some missiles would be coming in.

    • frog  September 5, 2017 at 3:53 am

      Jim, wasn’t it China who said that they will protect NK if attacked, but not if NK attacked first?

    • CharlieBravo  September 5, 2017 at 7:06 am

      @frog
      Yes it’s both the Chinese and Russian interest to make sure nothing like a hydrogen bomb exploded in it’s borders. They have proposed the double freezing plan didn’t they ? Stop provocative exercises and stop further missile test and nuclear which the US rejected (i don’t hear s Korean president thought on the matter so i guess they were tied for now).
      I’ll predict three outcome out of this increasingly higher tensions.
      – NK holding on for a while before have to capitulated due to shortages of materials needed to further advancement of it’s nuclear arsenal in that the compromise wouldn’t be led by the US but by both China and Russia.
      – S.Korea capitulated and initiate a real peace agreement between two of them only which may have to evacuates the current US soldiers stationed in it’s land.
      – Last and worst would be that US seize the initiative and launched full assault on N.K assets in which the Chinese have to intervene. Early after Chinese clashed with the US it suddenly launch a new offensive against it in their mainland from the sea then following with another offensive from European territory to it’s biggest ally Russia in hope it abandon their pledge of alliance and make both country reconsider their stance with N.K seeking to avoid further clashes before it gets into anything more serious exchange of weapons.

  7. David Odell  September 4, 2017 at 8:16 pm

    Yea, the banana nut waffle with snake syrup is down to a military skeleton crew now, and that may have been the idea all along. Cutting off trade with China is the order for the archers to fire into the throngs of the mix without consideration for the home team. The NK situation was barely smoking until he blew on the flame. I guess we need to remind ourselves that despite NK being wacko, that they are not blowing up innocent people in other countries like comparable “Great Leaders”, KSA, or Israel, or ourselves.
    There is much admission coming now that many spies were in fact embedded in the evangelistic “missionaries”, and the whole screaming about getting one dude back, was hype also. The christian right has a real Weird Obsession with NK. Violence upon violence is not the answer.

    • David Odell  September 4, 2017 at 8:20 pm

      Honestly though, I would like to see leaders do their job, and go meet the dude. Just the POTUS and 2 security. Do your job Donald, show us how brave you are and lead. Walk into dudes house and sit down.
      Bring a couple others like China and Russia along. All can go and do the actual leading part. Instead of hiding behind economic skirts, and military daddies. I know about 100 women who would be brave enough. no problem. Big shots need to get over themselves and try something different. Bring a sorry gift for the carnage.

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