The Chinese Press Believes China Should "Concede Defeat To Donald Trump" In The Trade War

From Don Surber:

To find the news, I read the South China Morning Post, which is worried spitless that the Red Chinese economy will tank like its stock market has.

(Its stocks overall have declined in value by 40% in the last three years. Our stocks are up 33% since we elected Trump. In the eight years from Obama's election to Trump's, the Dow rose by 33%.)

The newspaper is running a series of columns by panicked investors and experts.

Aidan Yao is senior emerging Asia economist at AXA Investment Managers.

Yao wrote, "China needs to put its house in order as the trade war goes from bad to worse."

He pointed out, "In contrast with the progress seen in United States-European Union negotiations, there are no signs of trade talks resuming between the US and China since the breakdown of negotiations in June."

There are 375 billion reasons this is bad for Red China. That is the number of dollars its profit was from exports to the United States last year.

Xu Yimiao is an independent China-based researcher.

Xu wrote, "China should cut its losses in the trade war by conceding defeat to Donald Trump."

He spared not Chairman Xi's regime.

"Beijing’s strategy of a tit-for-tat retaliation over tariffs has clearly failed. In fact, this strategy escalated the conflict. The direct retaliation after the US announced the first batch of 25 per cent tariffs on US$50 billion in Chinese goods (with the increase from US$34 billion just finalised and coming into effect on August 23) brought few benefits for China. If anything, it gave the US an excuse to plan for a new batch of tariffs covering US$200 billion in Chinese goods. To be fair, it is possible that the US would have escalated the conflict even if China had not retaliated, but whatever the case may be, China’s strategy did not work," Xu wrote.

Here's the problem, we buy roughly $500 billion of their stuff. They buy only $125 billion or so of our stuff. We have four times as much to tariff as they do.

Xu ended his piece, "To get out of this predicament, Beijing probably needs to deal with Trump directly, figure out what he needs to declare a win and create conditions for that. Of course, allowing Trump to declare victory might be tough and even embarrassing for Beijing, but sometimes it is the best choice to stop losses in one trade and hope to profit at another time."

Reporters Wendy Wu and Kristin Huang wrote, "Did China think Donald Trump was bluffing on trade? How Beijing got it wrong."

This happens when your intelligence consists of spying on Dianne Feinstein and watching CNN.