REPORT: China Now Begging President Trump To Help Them Save Face

Embattled by a collapsing economy and civil unrest, the Xi government in China is now begging President Trump to help them emerge from their global cage match intact.

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Via The New York Post:

China has upped the ante in its trade dispute with America. By allowing the yuan to fall on foreign-exchange markets, Beijing has shown how far it will go in response to existing US tariffs on Chinese goods, as well as additional ones now threatened by President Trump.

But China’s moves also signal weakness: Beijing can no longer play the tit-for-tat tariff game. And because the devaluation has raised the risk of capital flight from China, the currency move also hints at desperation.

With or without the devaluation, Beijing is in a tough spot. On one side, the Communist Party can ill afford a trade war, since it has an implicit contract with the Chinese people to deliver prosperity in exchange for autocratic rule. But Beijing cannot countenance Washington’s demands that China import more from the United States, cease cyber theft and let Americans do business in China without Chinese partners.

These aren’t new demands, but the Trump White House wants them guaranteed in Chinese law. This last point, China’s leadership claims, is an affront to the country’s sovereignty — already a sensitive issue, given the turmoil in Hong Kong.

China has always held the weak economic hand in this dispute. Its export-dependent economy needs overseas sales, which comprise one-fifth of its gross domestic product. More than a quarter of those exports go to the United States, meaning 5% of China’s economy is exposed in this trade dispute. By contrast, the United States counts on exports for about 12% of its GDP, and barely 8% of its total exports go to China, leaving just 1% of the US economy exposed.

Moreover, some 30% of US goods sold in China are off-limits to tariffs, as they constitute components, mostly to computer and iPhone assemblies, that support Chinese exports.

These relative disadvantages showed themselves early in the dispute. American firms began moving their operations elsewhere, while many Chinese firms have decamped to other Asian countries, in large part to avoid the American levies. Even the perennially upbeat (and suspect) official Chinese government statistics show that the economy is suffering — China’s GDP during the second quarter grew in real terms at its slowest rate since 1992.

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Export volumes appear to have dropped more than 4% in the past year. Imports have also declined by more than 5%, indicating a drop in employment and consumer spending. While official figures still suggest a robust Chinese jobs market, surveys of Chinese media show a marked drop in help-wanted advertising.

These economic setbacks have also constrained China’s access to hard currencies, primarily the dollar, forcing a dramatic ebb in China’s once-mighty flow of overseas investments. In the first half of 2018, investment volumes ran at a quarter of their pace during this same period in 2017.

Long before the recent devaluation, these severe economic setbacks had already put China’s yuan under pressure. Until recently, the People’s Bank of China resisted that downward push. They did so because China needs financial capital, and in reaction to a loss of the global purchasing power of the yuan, Chinese wealth holders will send their money abroad.

The Chinese also understand that a devaluation to offset the Trump tariffs would mean that Chinese operations would receive fewer dollars for each sale; in other words, manufacturers would pay the tariffs for the American buyers. Given these risks, the Chinese currency devaluation indicates that the leadership is in a bind.

Sovereignty issues matter a great deal to the Chinese. If the Americans were to relent on this point, Beijing would sign a deal quickly. But the White House has good reasons for insisting on changes in the law. American presidents since Bill Clinton have all complained about Chinese trade practices, and Beijing has continually offered assurances that it always reneges on. Trump’s hard-line is a response to this past duplicity.

The United States could have an agreement tomorrow if the White House were willing to accept China’s vague promises. But America doesn’t need to give in to the Chinese obstinacy. Even now, talks continue. China might yet succumb to economic pressure and yield to American demands — but the prospect of a deal would brighten considerably if the White House could offer Xi a means of saving face on the sovereignty issues.


The above is critical to understanding how masterfully President Trump and his team have navigated the ongoing negotiations with China. The communist nation is now stunned this U.S. president is not doing what all other presidents have done before him – accept vague promises, smile for a photo op, and then allow China to continue on doing business as usual. No, President Trump is not a politician — he’s an America-First leader the likes of which China has never seen.

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The Remarkable Success Of Trump Presidency Continues As Sweeping Trade Agreement With China Nears Completion

If what is coming out now via the Trump White House and various (albeit grudging) Establishment Media reports, the United States and China are on the brink of something truly remarkable that will likely create millions more jobs in America, greatly reduce a massive trade deficit, and reset the geo-political landscape across the globe—all thanks to the vision, strength, and tenacity of President Donald Trump. 


What President Trump has done in just two short years is something no other administration has come close to doing over the last forty years—bring China to the negotiating table with the realization that America still swings the biggest stick in the locker room of global politics. President Trump stabilized U.S. military spending, greatly strengthened the economy, and then went at China hard with current and pending sanctions that rocked the Chinese economy over the last six months. The message was sent and China heard it loud and clear.

The result? China’s President Xi is promising to act “swiftly” to remedy the trade imbalance, including intellectual theft that has taken billions of dollars of value from U.S. companies. THIS HAS NEVER BEFORE HAPPENED. That point cannot be emphasized enough.

President Xi has given a timeline of three months for his country to make good on its promise to continue full and honest trade negotiations with the United States and members of the Trump administration are openly optimistic about the remarkable progress and benefit to America that is soon to to be the result of the President’s strong leadership on this issue.

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Trump Is Already Winning The Trade War Against China

Donald Trump stared down China’s President Xi Jinping – and China blinked.

This week President Xi made several concessions regarding the trade imbalance it has long enjoyed with the United States while making strong hints that more concessions are soon to follow. This pro-America victory is in stark contrast to the bowing and pleading posture that took place during the previous four administrations of Obama, Bush, Clinton, and Bush Sr.

The Establishment Media is largely ignoring the America-First victory. That means it’s up to all of you to get the message out there.

Via StraitsTimes:

“…Mr. Xi highlighted areas where China was willing to give, including pledging to ease restrictions on imported cars by the end of the year as well as repeating open-ended promises to give foreigners greater access to the country’s financial markets – promises officials have made in the past.

He also pledged to strengthen intellectual property rights, addressing one of Mr. Trump’s main complaints.

“…Chinese officials have said they want to avoid a trade war and negotiate.

On Tuesday, Mr. Xi appeared to have given Mr. Trump a concession by pledging to “significantly” lower tariffs on imported automobiles by the end of the year.

Just hours before, Mr. Trump had taken to Twitter to complain about China’s 25 percent tax on imported automobiles.”


While it is true Mr. Xi has made head-fake trade promises in the past there is an urgency and quick-to-comply tone that has been missing before. That change in tone is due to one thing – the aggressively pro-American stance of President Donald Trump who appears more than willing take on short-term political pain for longer term economic gain that will directly benefit the American Working Class.

It has been a very long time since a U.S. President has been willing to fight so hard for the people who got them elected.

Trump is the exception and the Chinese appear to realize that.