"They Go Low, We Go High": China Quotes Michelle Obama, Sees "Darkest Hour" For The World

China is now officially part of the anti-Trump resistance.

Readers will recall that on Saturday, among the various responses by Chinese officials to the launch of trade war by the US (and instant retaliation by China), we quoted Frank Ning, chairman of state-owned Sinochem Group, who said that "what Trump is doing is more than crazy" in reference to Trump’s tariffs. “The biggest victim from a trade war will be the one who initiates trade protectionism,” Ning said at the APEC China CEO Forum in Beijing.

But the punchline was Ning's closing remarks, in which he cited Michelle Obama’s 2016 line from the last U.S. presidential election campaign that "When they go low, we go high", a phrase which was subsequently adopted by Hillary Clinton (We also wondered if Ning was aware that the extensive use of that line as part of Hillary Clinton's campaign  in the 2016 elections ended badly for the Democrats).

Well, fast forward just a few days to today, when China has decided to double down on what ended up being a losing campaign slogan, and when assistant minister for China's Ministry of Commerce, Li Chenggang, commenting on the latest trade escalation at a forum in Beijing today, said that in trade "they go low, we go high." Which of course makes absolutely no sense, because just minutes later an official from China's Commerce Ministry reiterated that China will take countermeasures, which - for anyone confused - means that when "they go low, we will go just as low if not lower."

Chnggang wasn't done with the bizarrely nonsensical verbal diarrhea, and said that the latest round of proposed US tariffs on $200bn in Chinese goods "harms the WTO trade order" that the US is "escalating" the trade tension, that "tariffs disrupt globalization" and concluded that the global investment environment is seeing its "darkest hour."

And while nobody has expressly stated what they will be, both a Chinese Commerce Ministry Official and a PBOC adviser, i.e. the guys in charge of yuan devaluation and dumping Treasuries, said China is consider countermeasures.

And while we await the official MofCom response, due later today (as previewed earlier), according to Suan Teck Kin, head of research at United Oferseas Bank, China may retaliate by imposing higher tariffs on U.S. products - i.e., more than 10%, instead of targeting a greater amount of US exports as those simply don't exist - so it can match the proposed 10% tariffs on $200b of Chinese imports.  Suan also said that China may also limit U.S. service exports, worth more than $50b per year, in terms of tourism, education and banking services.

Ultimately, as we just said minutes ago, the uncertainty for the market is how China will retaliate: “Whichever way, the markets will take it negatively after the calm over the past few days." Suan concluded.

Comments

powow IridiumRebel Tue, 07/10/2018 - 23:24 Permalink

 

"Which of course makes absolutely no sense"

Really?

Let me help.

“The whole secret lies in confusing the enemy, so that he cannot fathom our real intent.” ― Sun Tzu, The Art of War

 

Trump's playing poker. The Chinese are playing Xiangqi.

The US has got an idiot for President who thinks he's on TV (now Twitter) shouting YOU'RE FIRED.

 

Calling Trump's puppet master for help.

Artist's IMPRESSION of Satanyahoo RIDING Trump

 

In reply to by IridiumRebel

CrazyCooter powow Tue, 07/10/2018 - 23:37 Permalink

Let's all either agree (or disagree) that the conclusion to this particular drama is:

  1. China decides to play ball and helps to level out the trade imbalance
  2. China adds one quadrillion dollars in protections to the US's one quadrillion in protections and trade halts

The US feeds the world - I think Trump holds the high cards - but this could end in conflict.

Regards,

Cooter

P.S. The most efficient way to killl the most people in the shortest time is starvation.

In reply to by powow

Laowei Gweilo Chris2 Wed, 07/11/2018 - 00:04 Permalink

@ZeroHedge

>>> re: "China is now officially part of the anti-Trump resistance." <<<

 

lol

"China appropriates anti-Trump resistance slogans to manipulate said voters to pressure Trump for its own very Trump-like national capitalist agenda"

FTFY =)

on the topic of anti-Trump resistances... CHINA DONT CARE ;)

In reply to by Chris2

inosent BlackChicken Wed, 07/11/2018 - 02:03 Permalink

China? Cammon ... prior to Nixon, China was a big nothing burger. Clinton sold them missle guidance technology for their nukes via FOB Loral technologies in exchange for Chinese buying US Treasuries. That was where China really got a grip on the USA. That all expanded somehow to the massive $1T negative trade. China, who not long ago, wasn't even in our markets, perhaps only nominally, shunned because they were dirty gook ass commies. Now they rape us @ $1T per year.

China can suck their own noodles. We don't need them.

#gotrump

In reply to by BlackChicken

svalleyboy Chris2 Wed, 07/11/2018 - 20:31 Permalink

are you not aware of anything?. Trump's daughter and grand kids are jewish and so are the clinton's daughter and grandkid. This has nothing to do with Jewish people. Trump is basically a sales guy and he is bought by the Israeli lobby, thats why he opened the embassy in jerusalem and the US is even more vigorously supports Israel at the UN etc.

In reply to by Chris2

Harry Lightning CrazyCooter Tue, 07/10/2018 - 23:58 Permalink

China has little room to maneuver in this game of chicken. The more extensive the tariffs, the more their 700+ billion annual surplus goes out the window. And considering the extremely large amount of debt they have,their fiscal situation could be destroyed if they take the trade war to its ultimate extension.

China became a very wealthy country because of their exports to US consumers. But they foolishly used the new-found wealth like kids in a chocolate factory, overspending on high profile commercial construction projects they didn't need rather than a more conservative route of building modern communications and transportation infrastructure to connect the booming coastal areas with the still-agrarian central and western parts of the country. That mis-allocation of resources now has become very costly, as numerous building projects remain vacant and the country has yet to develop a broad-reaching middle class that would allow the economy to prosper even if trade revenue decreased.

As such, they now are in panic-mode. How ironic that just after being proclaimed Premier for life, their President now stands at the precipice of overseeing the destruction of the Chinese export economy. Talk about the pride before the fall !

The bottom line is that China's knee-jerk reaction to tariffs is borne out of a great fear that any significant reduction in national revenue will make financing existing and planned development in the country untenable. They won't be able to pay the debt service, never mind the principal, if they were to lose several hundred billion per year in trade surpluses. Regrettably for them, their leadership has sought the wrong response to the situation, one that is fueled by national ego rather than sound economic principle and smart political calculation. 

The Chinese stock market has recognized the severe catastrophe that awaits its economy if it continues along the path of trade war escalation. Politicians need crisis to wake up to reality. That day is coming, and in typical Chinese Communist Party tradition, there will be a number of heads that will roll over this mess. Had they just accepted the initial tariffs with a hardly more than a few press releases of indignation, they would have taken the first loss (which is always the cheapest) and protected the larger share of their trade surpluses. Instead now, they probably are in jeopardy of seeing their trade revenues cut in half, and on top of that, will lose probably as much in having to employ middle men to acquire the food and other products they need from the US but have now closed off those imports due to their retaliatory tariffs.  

Its still not too late for China to reconsider its foolish response to the American tariffs, and back-track on the tariffs they have erected on US goods. But the door is closing quickly for them on this issue, and very soon the hard reality of revenue shortfall will start to bite them in the butt. Wouldn't it be poetic justice to see that the country that instigated the decimation of large parts of the American manufacturing base during the past twenty five years also becomes the country that launched a new resurgence in American manufacturing ?.

China should immediately request a trade summit with the Americans, and seek to cut their losses while they still have the chance to do so.

In reply to by CrazyCooter

CrazyCooter Harry Lightning Wed, 07/11/2018 - 00:14 Permalink

Harry Lightning,

You sir, according to my opinion, have it precisely correct.

One of the longstanding problems with humanity, particularly the people who end up leading large chunks of humanity, is the notion they can get away with much more than is practical. This works on small scales, thus their hubris, but tends to fail at large scale.

See Hillary and Xi for recent references - history for many, many others.

Regards,

Cooter

In reply to by Harry Lightning

Rodders75 Harry Lightning Wed, 07/11/2018 - 04:03 Permalink

@Harry L. Agree with all the sentiments expressed in your excellent post. The one thing you miss out however is that Navarro along with Lighthizer (who insulted the Japanese during Reagan initiated trade negotiations by folding their proposal  into a paper dart and threw it at them) have a beef not just with trade but also the Made In China 2025 initiative whereby China will seek world dominance in the "New Economy" (AI, IoT etc). We've  just accepted as given China's inexorable rise to world economic dominance but Trump is hammering that notion. China badly needs to improve its total factor productivity to offset lousy demographics and to exit the middle income trap. This is seriously important to them and Trump is striking at the heart of all their beautiful 5 yr plans and ultra long term thinking. As you say they'd be better to yield to Trump's demands or LT they're screwed. Another point is that the cliché view of Trump as a dealmaker is true. What the idiot Europeans and Chinese don't realise is that DJT wants them to come back with a proposal that gives him essentially what he wants but that would let him offer them something in return. Trump doesn't I think what to screw China, he just wants a better deal for US workers and a more level playing field.

In reply to by Harry Lightning

Harry Lightning Rodders75 Wed, 07/11/2018 - 05:31 Permalink

Those are excellent points that I am glad you added to what I started.

Bottom line is that Trump is playing the right hand to deal with the terrible trade situation that previous Presidents got the US into, and as this hand unfolds he will be progressively more in the driver's seat to tighten the noose around the necks of seemingly intransigent trading partners.

Its amazing how much whining comes from adult leaders of countries when they are faced with having to pay for their lunches. The fault here lies as much with those foreign leaders as it does with the American Presidents who kissed the asses of US big businesses by allowing these horrible trade deals to be made in the first place. I believe it was the way these Presidents repaid the campaign contributions that got them elected, a quid pro quo that said if you donate to the campaign you will be repaid many times over in cheap labor. Starting with Clinton, these Presidents really sold out the American worker and ruined the American manufacturing industry. Wall Street loved it as it was great for profits, but now the US is left with not having the factory capacity to produce the same military armaments that it produced in WWII in anywhere near the same time. I can't recall any actions ever taken by American Presidents that did more to harm the national security interests of their country than what was done by Clinton, Bush II and obama with respect to gutting American manufacturing and devastating American factory workers, all for the sake of providing a small percentage of overall American businesses with windfall profits from cheap foreign labor.

America is very fortunate (even if half the country does not realize it) that it has a President (finally) who is willing to turn free trade into fair trade.

In reply to by Rodders75

ArthurDaley-Ol… Harry Lightning Wed, 07/11/2018 - 00:42 Permalink

Harry + 25 up points. You've nailed the issue. They said Trump couldn't win the trade war. He was so far down the rabbit hole he had nothing but everything stacked on his side to win the trade war. China acted out of ego. In 2012 Obozo went and met with Tim Cook. Cook who has no children (he's gay) has no connection to the future through his progeny. Cook didn't get,  that without manufacturing in the USA we've become yet a distribution and warehousing facility for China (manufacturing).

Personally I don't enjoy Trump/ Stormy Daniels etc, yet everything he's doing (and has done) is better by far than the last 4 presidents that America has had.. 

In reply to by Harry Lightning

D503 powow Tue, 07/10/2018 - 23:40 Permalink

I've said it before, and I'll say it again:

"Tariffs" only mean a nationalistic argument if the ownership of business requires naturalization in the country.

Trump is directly attacking the offshoring of labor by rich American business owners. 

Are you upset goods made by fucking Nike are going to have a tariff? Campbell Soup? Tropicana? Intel? DELL? APPL? 

Aww. Don't worry puddims, the tariffs just got ten percent higher.

In reply to by powow

CatInTheHat powow Wed, 07/11/2018 - 00:02 Permalink

What he's doing is criminally insane. So we're punishing China ....because corporations sent American jobs to China for cheap labor,???

We send stuff for China to make, that comes back to the US as imports. Tariffs = tax upon the American consumer, harshness upon the US farmer and for what again?? .

Oh yeah for revenue. Trump's tax heist seriously curbed revenue as Americans just don't make enough, nor do they have enough to consume now. Add to this Trump's forced sanctions on Iran and holding EU VASSALS to account through blackmail so that they stick to Iranian sanctions, Americans are now paying insane amounts of income for gas. And that is expected to go much higher the closer to November we get. Trump listening to Adelson and Nutty. Trump yelling at Opec on Twitter to pump more oil, 2 million barrels but Saudis can't comply, even with extra output from Russia, it's still not enough. MBS hatred for Iran and screaming for sanctions too, just might backfire. 

What a MESS Trump has made, but hey at one TRILLION a year for war, someone has to pay for it as US debt climbs. Why not China?? BTW they are going to purchase even more Iranisn oil. Sure to piss off US.. .

And then what if China drops our treasuries? Oops? Either way, perhaps the plan is to crash the market for phase 2 of NWO???

In reply to by powow

halcyon IridiumRebel Wed, 07/11/2018 - 01:17 Permalink

Anti-Trump resistance? Haha, only a one eyed fool believes that.

It is every country for itself and then new alliances.

New world order is coming, just like Bush Sr. Told you 20 years ago.

And the monetary reset is also on its way, slowly, slowly....

Nothing todo with the current sock puppet. He is just a tool and a media distraction, while the real players are free to operate without publicity on them.

Still long defence.

 

In reply to by IridiumRebel

Conscious Reviver BaBaBouy Wed, 07/11/2018 - 01:13 Permalink

"Soo, whats his grand plan, ?"

Cut US imports to a level that can be sustained w/o the GRC priviledge/ curse.

To me, it's pretty clear that that is what all this trade nonsense drama is about.

It's like they're going to cut the water ration, but need to do it without spooking the herd.

It's the RESET underway. This is what it looks like.

 

In reply to by BaBaBouy

edotabin IridiumRebel Tue, 07/10/2018 - 23:30 Permalink

Seems their Yuan has gone pretty low if you ask me.

Sick and tired of mamby pamby bullshit. It must be a human trait. Everyone likes to do sneaky things and get away with it until they get caught. Then they cry out in indignation.

"Look at the mean US trying to harm us. We take the high road and they harm us".....sob sob

Whispering: "Jian, do you have the 5 year plan for world domination ready? Make it 3 years!"

In reply to by IridiumRebel