Stocks Tumble As China Urges Americans To Rise Up Against "Unscrupulous" President

The war of words between President Trump and 'everyone else' continues to heat up, with market conniptions managed for now by Kudlow's "good cop" headlines to Trump's "bad cop" histrionics.

In his latest salvo in the trade war, following China's 'fight them on the beaches' rhetoric, Trump turned his attention to the World Trade Organization, lambasting their lack of action as "unfair."

But it appears China's Xinhua news - unofficial mouthpiece of the Party - has sparked some more concerns as an op-ed calls for open rebellion against President Trump...

US President Donald Trump's latest threat to impose tariffs on an additional $100 billion in imports from China was quickly rebuked by China's Ministry of Commerce and Ministry of Foreign Affairs in a more resolute way. The two ministries said China will listen and observe what Washington will do next, while showing contempt to the unreasonable US. They said China will fight to the end at any cost, which is an unusual response.

We Chinese do disdain that Washington, which is in no position to initiate a trade war with China, persists in wielding the tariff baton. We are fully able to inflict as same losses on the US as those on China. The US will have to repay whatever loss and harm it has caused on China with huge economic and political cost.

The White House's latest proposal will hit Chinese exports to the US, and in response China will make a sweeping counter attack at US exports to China. China can retaliate at a wide range of areas including US goods exports to China, service exports and the US' highly profitable investment in China.

It takes both strength and willpower to engage in a large-scale China-US trade war. While the two countries are about evenly matched in trade power, the future is on China's side. The trade war will cause pain for China, but in the meantime it can force China to speed up its economic transformation. What the US is losing in this process is its future. Many leading US companies will lose the Chinese market and thereby lose their edge. The US' modern agriculture industry will be dealt a heavy blow.

China won't back off. The Chinese society will unite around the Party and the government to weather through the hardships, which is unparalleled for the US. More importantly, in the trade war launched by the US, China is on the righteous side safeguarding multilateral trade rules and our own rights on this basis.

Chinese are aware that the only option now is to hit the US hard enough so that it will remember the pain. Otherwise Washington will go more recklessly and cause more losses.

When Zhu Guangyao, China's vice finance minister, and Wang Shouwen, vice commerce minister, announced proportionate tariffs on $50 billion US goods exported to China at a press conference on April 4, the short video got more than 2 million likes in two days. That is how Chinese people feel.

It is not only the Chinese government's decision, but the choice of society to firmly strike back against the US pressuring moves at any cost. Chinese society has been mad at repeated threats from the US in these years. Even if the Trump administration wants to take the trade war to the direction that bilateral trade and investment is suppressed to zero, China will meet all the challenges.

Based on information we have received, Chinese authorities have made detailed response plan with many specific measures. Relevant Chinese government departments are fully confident in our ability to hit back at Washington, safeguard China's interest and defend the multilateral system.

Most Americans have their life linked with China-US trade.

As the tensions escalate, we want to expand the trade war to all Americans so that they have to choose whether to support Trump's unscrupulous move or to hold the president accountable.

Not even Kudlow's chalk-strip-suit-wearing smile can save the market this time...

Comments

overbet Déjà view Fri, 04/06/2018 - 11:20 Permalink

The truth is on Trump's side on this and most Americans know addressing it is long overdue. Trying to appeal to the people will only result in griping from globalist and some moron liberals that would be griping anyway.

In reply to by Déjà view

Voluntary Exchange 07564111 Fri, 04/06/2018 - 11:44 Permalink

Nothing more unscrupulous that a gang of criminals (Chinese Government) making a billion people their slaves by theft, fraud, and murder, including selling off their body parts.

Unfortunately every gang that calls itself "government" on our planet is similarly unscrupulous. Maybe consenting to be robbed at gunpoint, (paying taxes), tends to create such pathology?

How about we base our systems on voluntary exchange instead?

 

In reply to by 07564111

Occident Mortal Voluntary Exchange Fri, 04/06/2018 - 11:47 Permalink

China are clearly terrified of where this leads.

 

They are literally screaming inside.

”oha-ha China easy win twade war wiff you” 

 

Hmmmm.... with an export only economy and debt to gdp ratio of 400%? Let’s find out shall we? MWahahahahahhahahaarRR!!

 

“He bad man, he unscrouples! You Mewicans cwazy, you will lose and we will win. Number One on East Side.”

In reply to by Voluntary Exchange

Theosebes Goodfellow Occident Mortal Fri, 04/06/2018 - 13:23 Permalink

~"China Urges Americans To Rise Up Against "Unscrupulous" President"~

I don't think the Chinese government "gets" irony too well. Most governments, Chinese or not don't. But this suggestion from a country that just decided to have a "president for life" about scruples is freakn' hilarious.

~"”oha-ha China easy win twade war wiff you”"~

This is a lose-lose, but it may be a question of who loses most first. We in America are awash in cheap Chinese domestic products. Those will take a few years to wear out and need replacing. The Chinese need for American soy beans to feed their pigs on the other hand...

In reply to by Occident Mortal

Bubba Rum Das The_Juggernaut Fri, 04/06/2018 - 16:03 Permalink

Obviously, you have NO IDEA, like many of the other morons here, that almost ALL of our manufacturing capacity has been moved over to China, Mexico, Indonesia, Taiwan, the list goes on; but the majority moved to China; under Reagan, BushI, Clinton, BushII; during the years that really, really low cost slave labor & almost tax free manufacturing facilities built in China were offered up by the Chinese...
As a result of this move to US manufacturing taking place almost solely in China, we have lost almost ALL of our industrial manufacturing base, & are currently heavily dependent upon the Chinese for this...
And yes, this was OUR OWN FAULT (at least that of the greedy US corporations & the Federal Government); that this has happened.

Trade war for this, sure, but don't blame the Chinese for letting this happen, as we have no current manufacturing capability or capacity to take the place of the Chinese factory's. Along w/ that, finding the investment to re-establish this here in the US? WTF?

Meanwhile, for the last 10 years, the Chinese have been expanding their world market for importing domestic goods used in everyday life to Russia, Africa, elsewhere in Asia & also western Europe, apparently they have been preparing for such an economic shift not trusting the US economically w/ all their eggs in one basket.

This is one of the stupidest things Trump or the US could do, with not preparing for such an event w/ all this in mind for the future.

The prices of domestic manufactured good's for the U.S. (which are no longer even manufactured here) will go over the top, (if this is what Trump is actually thinking about  doing) along w/ the cost increase in Chinese goods, as they will want to to offset Trumps tariffs. 

WORST CASE SCENARIO:

Trump could not have picked a worse time for this, w/ the stock & bond market both being overvalued by around 700%, along w/ this kind of inflation incurred & along w/ the higher prices of manufactured goods, will really push this country (where 54% of the adults don't EVEN have $500 in their bank accounts for an emergency) over the edge economically...
It will also more than likely be the end of Walmart & Amazon in addition, if both sides of this prospective trade war follow through on their threats; also along w/ the dumping of US treasury notes owned by the Chinese on the market, just to spite us for this shit.

In reply to by The_Juggernaut

DemandSider superyankee Fri, 04/06/2018 - 14:17 Permalink

It could rise to $500,000 for all I care. This whole "trade war" began with the bankers' bloated dollar and their effort to destroy democracy, so it's a bit of a stretch to blame Communist China, but if the tide of crap from their government owned complex is stemmed without The U.S. making any offensive military moves, this is many decades overdue. If growth in The PRC becomes obviously negative, Taiwan or some other little countries could be in trouble, as The CCP will have less to lose.

In reply to by superyankee

shortonoil superyankee Fri, 04/06/2018 - 14:39 Permalink

If America loses access to cheap flat screen TVs its national IQ is likely to jump 20 points in a month. As far as cheap goes, robots work at the same wage rate in the US as they do in China. American manufactures just don't have the advantage of being able to dump their poisonous by products into the local river. Then again 70% of our water supply is not too toxic to use. Wall Street is going to cry a river, but they, and the TBTF banks have been screwing over the US worker for decades. If we stop with the stupid money games we might actually start making things that we can use. Not many people actually use a synthetic CDO. Sorry China, the US has hired a new gang boss, and he thinks you are bunch of lying, thieving Chinks. That's hard to argue with!

In reply to by superyankee

Bubba Rum Das shortonoil Fri, 04/06/2018 - 16:21 Permalink

"American manufactures just don't have the advantage of being able to dump their poisonous by products into the local river."

Hello, lights on, is anybody home???

WHAT American manufacturers are you referring to?
The very few that are left DO NOT & WILL NOT have the ability to take up the slack if we lose the Chinese imports!
Along w/ that US inflation will go through the roof, from Chinese compensating for the tariffs on their pricing to make up the difference & also the high cost of of US manufactured good's, if there are any, that is...
probably tipping our waaaay overvalued markets & service economy way over the edge...

We are NOT prepared for such a trade war as Trump proposes.
Get ready for the next depression & the Rothschilds calling in our 22 trillion dollar debt.

Oh, you say 'default'?
Great, then all property, both public & private will be offered up to those fucking Central Bank Federal Reserve frauds/owners as compensation, just like what happened in Brazil when Brazil defaulted on their debt.

In reply to by shortonoil

Nobody For President shamus001 Fri, 04/06/2018 - 14:59 Permalink

And you, dear sir, are part of the fucking problem.

(I have a tv in one room of my house that went dark the day my wife died 4 years ago. She had her favorite shows and DVDs of shows she had missed, and watched a lot the last hard year she was battling NHL. Canceled Direct TV or whatever the fuck it was. Sometimes watch an old DVD but mostly watch you tube video movies when I have to kill time and slay eternity.)

What the fuck is wrong with you? Or is this sarc without the tag. If so, my bad.

TVs in every room?!? What the fuck is wrong with you? You are obviously literate (you used 'too' instead of 'to' correctly). Jesus H Christ on a crutch, you are not required to buy more cheap ass chinese (or any other country) stuff than you need - so why do you?  Because you can? 

 

In reply to by shamus001

Theosebes Goodfellow I am Groot Fri, 04/06/2018 - 19:17 Permalink

~"They will have millions of unemployed manufacturing workers."~

Although those are laudable sentiments, be careful of what you wish for. China will not have millions of unemployed workers. If China were to face such a scenario, China would suddenly have millions of PLA conscripts.

Remember that whole "One Child Policy"? China has a population of young men with no eligible brides. Currently they are exporting these young men to foreign nations as workers. These men, cadres if you will, are assimilating into the local cultures by marrying local women. They remain though thoroughly Chinese.

We've already lost the war. We just don't know it. The future is Han. Everywhere.

In reply to by I am Groot

BullyBearish 07564111 Fri, 04/06/2018 - 11:53 Permalink

china TOOK nothing...they were given EVERYTHING by the owners of capital in this country: your jobs, your savings, your kid's futures, this country's #1 position as a NATION...blaming china is like blaming a homeowner for the mortgage crisis...

 

misdirection at its best...ALWAYS create a villain to take off the heat, e.g. russia, china

In reply to by 07564111

DemandSider Bumpo Fri, 04/06/2018 - 14:25 Permalink

Not really. Labor cost is a small part of it. If it were the primary reason, all the manufacturing would be in Africa or India. The main reason they can make anything we can make cheaper is that so much of their industry operates as a state owned non profit, with no CEO parasites to skim profit, so it can be reinvested in production. As long as Wall Street keeps handing them democratically funded technology, they will dominate the world more and more.

In reply to by Bumpo