Being unprepared is a serious mistake, with alternative supply chains not readily available to restock retail outlets or rare earth elements to sustain its military industrial complex. A war cannot be won without the background support of capable logistical supplies and weapons manufacturing when assets are destroyed on the battlefield and needs replacements.
China has all of these well covered, planned for decades earlier, and is now reaping the benefits of its long-term strategy. Had China not in almost total control of rare earth elements and refining logistics, and is now still relying on other countries, this would have been used by the USA to force China down on its knees. Now it is the USA on its knees regarding rare earth shortages needed for its military industrial complex and manufacturing needs like those semiconductor factories in Arizona among others.
Having seen USA doggies being forced to go against China in the semiconductor war, China is wise enough to prepare for the day when its military would be forced to face the same strangulation without controlling the rare earth elements and has therefore build up a system to make sure this does not happen.
Now the USA is the side facing this rare earth problem and China now holds all the cards. Short term planning for short term gain can never win in a game of strategy.
Anonymous
Scott Bessent demands that China obeys USA currency rules. China is already doing massive trade with Russia in Yuan and Rubles, more than 92% in fact. Likewise, more countries in BRICS are doing it among themselves. The USA wants China, Russia and other BRICS countries to forgo doing all that? China is the prime mover and biggest economy in BRICS to be on target by the USA. Keep dreaming!
ReplyDeleteUSA Treasury Department is also demanding that Japan hike rates, while Japan is already mired in economic problems up to its eyebrows. This will decimate Japan's exports further, raise interest payments on its debts that is already 260% of its GDP. This is unsustainable. Japan needs more exports with a weaker Yen, not a more expensive one.
USA literally destroyed Japan's economy earlier by depreciating the US$ massively against the Yen under the Plaza Accord in 1985, put together by the G5 then - USA, Germany, France, UK and Japan, under which Japan's economy stagnated for more than three decades. It was a coup by the Anglo-Saxon Whites against Japan, with Japan being the sacrificial lamb led to the slaughter. Japan has never managed to recover since.
The USA cares little about Japan's economic problems and is now throwing Japan under the bus, with the current tariffs still to be negotiated. Japan is in deep economic trouble and has little room to maneuver, unlike China.
Chinese manufacturers are already reported to be having a surge in business with ASEAN, up 20%, with Indonesia taking the cake at 36%. This is how fast the Chinese manufacturers have got around those tariffs.
ReplyDeleteThe USA market is not the future for Chinese manufacturers however much Trump, Scott Bessent or Howard Lutnick may want to gloat about how important the USA market is for Chinese manufacturers. Chinese manufacturers are not like Nero fiddling while Rome burns.
As I always say, Indonesia is a very important country joining BRICS. It is the largest economy in ASEAN with a huge population and rich mineral resources. It is a country with huge potential for consumer growth.
The USA side is already dispensing the narrative that agreement has been reached in London between China and USA, but that is all hogwash and just unreliable reporting. The same as all the reports about Trump negotiating with China earlier before Switzerland, which was never happening according to the Chinese side.
ReplyDeleteAccording to one commentator, the parties have agreed 'in principle to a framework for further talks'. Those are the exact words used by the Chinese Spokesperson. There is no agreement. The consensus remains that an agreement is hard to come by, especially with regard to the relaxing of rare earth exports. This is China's trump card and a national security matter.
China does not make frivolous claims and later walking back on its words.
The USA media is always trying to put words in China's mouth when nothing is further from the truth.
DeleteAnd Trump will later claim that China broke the agreement when there is no agreement to speak of. There is just an agreement for further talks, just as that reached in Switzerland.
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