China threatens ‘total war’ with US if Trump doesn’t realise he’s made a mistake | Victor Gao

This video is short, less than 15 minutes.  Victor Gao is always worthwhile to take a listen to.

There is a comment from the US that attempts to frame the tariff war as an existential issue for the US. It is only existential because the US refuses to become a normal country and continues to wage war. It is only existential because the US wishes to remain the world’s hegemon. I don’t follow the markets, but I catch that gold is at a record high and the Dollar index is falling, although this may change in the next five minutes.

China has just reacted to the crazy escalation of tariff percentages and escalated as well: Truly goofy numbers. China’s escalation is a little less than the US.  Bear in mind, China is not bothered about the goofy numbers that the US is generating.  They only retaliate, as they have to (tit for tat principle) but their tariff war is being fought very differently.

China raises the tariffs on the US goods to 125% and calls the bluff and leaves behind the stupidity.   At this level one does not pay attention any longer as China says, and from memory, the US is now in the region of 170+% combined.

“Given that US exports to China already have no market acceptability under the current tariff rates, if the US further imposes additional tariffs on Chinese goods, China will simply ignore them,” said the Customs Tariff Commission of the State Council, the country’s cabinet.”

China is stepping out of the stupid paint-by-numbers tariff fight.  What this means is that the rates are, to say it inelegantly, stupid. One cannot even call it ‘insane’, because insanity has a structure to it.  This is just stupid.   It is higher than the Chinese (and any) market can bear, and it means China will not buy from the US. There is much fervent discussion in the world of netizens but please remember, China is looking at a massive GDP of 5% and their imports from the US are only in the region of a miniscule 4% of their total GDP, according to the best numbers I can find. China can give a little GDP while they change their supply lines completely. If the US buys, China will deliver and the US can pay for their own tariffs.  This will not help the core problem of the US in the least as the balance of trade will remain unbalanced.  The latest is that the SCO countries are meeting, and also Xi Jinping is visiting Asian countries – Vietnam, Malaysia and Cambodia.   Europe, for what that is worth, is desperately beating a path to China’s doors.

If the US objective here is a war, the Chinese intelligent discussion space says:  BRING IT ON!    Nobody is calling Trump.

UPDATE:  Xi Jinping in his meeting with the Spanish Prime Minister:

“There are no winners in tariff wars.

Going against the world will only lead to self-isolation.  [This is a warning to the US].  

China’s development over the past seven decades is a result of self-reliance and hard work, not favors from others. China does not flinch from any unjust suppression. No matter how the external environment changes, China will remain confident, stay composed, and concentrate on managing its own affairs well.”

This video from Victor Gao contains his answers to belligerent Western reporters, who take the opportunity to yet again rubbish China.  Victor does not mince any words.  “China has been there for 5,000 years—most of that time, there was no United States.”