Trump is Deindustrializing China, Just Like they did to the U.S. — and China is helping accelerate it
It is now becoming clear that the real true effect of Trump’s tariffs on China is to deindustrialize China’s manufacturing base.
The same thing they did to the United States, Trump is doing to them.
The rise in Chinese manufacturing in Vietnam, and China’s attempts to pretend to manufacture things in Vietnam and then ship them to the U.S. to avoid tariffs is a good example.
Factories are leaving China.
And owners say they are not going back.
The Vietnamese do not steal their intellectual property and trade secrets. China doesn’t either, it demands them to be handed over on bended knee for the privilege of having a factory in China.
But with Trump’s tariffs, the costs of manufacturing in China are now too high.
And the more China digs in, refuses to abide by its current and previous promises, the more they will play a catalyzing role in the shrinking of their own industrial base.
Americans really do not understand this fact, yet.
But when they do, especially among the working class, Trump’s support will be even more unshakeable, if that is possible.
Americans may also come to understand that when the SABRE airline reservation system shut down on the day the U.S. announced fighter sales to Taiwan and thousands of flights were canceled, it was no coincidence. The Chinese did it.
And when banks and local delivery services could not function because of cyber issues on the day Trump announced by Tweet his new 10% tariffs, the first thing the American public should think is China.
Americans are not now connecting the dots. But China can’t help themselves, and over time, these patterns are revealed and will be understood by the American public.
Now, China will have the political downside of factories closing — something that the U.S. has been dealing for the past four decades.
Chinese intelligence services are behind the dumping of fentanyl in the U.S. in order to hurt our social fabric, injure our citizens, and drive up inefficiencies and costs for our economy. It is a despicable act and this alone deserves the 10% tariff, if not more.
Then there is the serious effort and organized plan to defeat Trump in November by using Chinese intelligence services and assets, allied business interests, and paid Chinese agents of influence to achieve this goal.
The price the Chinese will pay for this interference in our domestic affairs will grow as more Americans learn of it.
It’s about time they understood just how good they had it with the incompetent and spineless American “negotiators” that have faced them across the table for the past four decades as China hollowed out our manufacturing base.
The sooner Trump imposes the new ten percent tariffs the sooner the Chinese will dig in farther and give Trump another reason to raise them another 5%.
Trump and the U.S. can wait for the Chinese to decide, finally, to act in their own economic interests.
But right now, Chinese pride is convincing them that being dishonorable and not living up to their promises is a better course of action than appearing to agree with American demands.
Chinese behavior will accelerate the deindustrialization of China and make President Xi’ Jinpings rein more and more uncomfortable.
This deindustrialization will show the world their ‘inevitability’ of China’s rise and that China itself, can be and is, subject to domestic economic and political instability. This is something the Chinese say repeatedly does not happen in China.
Since Trump is regaining some of the balance of payments lost to the Chinese through tariffs, and as these policies start the factory shuttering and moving process that Americans dealt with for decades, look for a rise in economic and political instability in China.
And the first thing they will do is turn the screws tighter on their Big Brother “social credit” crackdown on their own citizens who, you know, maybe unhappy about losing their job or the economy tanking, all while they have no freedom to do anything politically relevant to change things. That will be frustrating.
Whether this predicted crack-down creates more dissent, as the China state-sponsored iron bar beatings of Hong Kong legislators did, will be interesting to watch.