Trump as Deluded as Biden Regarding China

When Team Biden Met with Team China in Alaska in 2021, it was confronted and told it had no leverage, no position of strength, with which to lecture China on anything. That if they wanted to talk to China, they had to do so peer-to-peer. Team Biden kept Trump 1.0’s tariff/trade war with China in place but didn’t opt to escalate where it had no power. Instead, it chose to promote chaos over Taiwan. It must be recalled that during Trump 1.0 massive, organized rioting aimed at a Color Revolution was conducted against Hong Kong that failed along with his trade war. The Uighurs were made the focus of a human rights/propaganda war against China that has yet to completely abate. All sorts of schemes were devised to slowdown China’s intense level of development that’s outpacing all nations, particularly the Neoliberal West. I recently commented and suggested this essay explaining how China has accomplished what the West has failed at. Since 2017 when Trump first became president, China has only become increasingly stronger and more resilient, Covid-19 proved that point very well, particularly China’s rebound. China now has the world’s more powerful economy accompanied by one of the best governance systems. Compared with 2021 when Team Biden tried to intimidate China but got shoved back into its chairs, China is far stronger and even more resilient versus the Outlaw US Empire. Thus, Trump’s delusion that he can bully China—to China, the Outlaw US Empire is a small pebble in its overall trade basket with the world and has no dependencies upon it for resources, while the same cannot be said about the Outlaw US Empire’s geoeconomic dependency on China. Trump has zero leverage over China.

Many have asked if there’s a logical strategy to Trump’s unconstitutional unilateralism. Some say he’s shooting at the Globalists and trying to shake their hold on power. But he employes one of the most powerful globalists—Elon Musk. He also has other Neoliberals in his cabinet that would also qualify as Globalists. Supposedly the tariffs are to help rebuild manufacturing industry with the USA, However, to do that you need some old-fashioned Industrial Capitalists with several trillions in hand to invest in reviving that portion of the Empire’s economy, and none of that can be seen or is even mentioned. Can this entire Global Trade War be aimed only at China? The anti-China propaganda he’s formulated since 2015 shows he holds a deep animosity to China. Is it a product of the Cold War?—Gotta beat those Chicoms. Trump clearly doesn’t care who or how many people he kills to get his way—and he must get his way or there’s hell to pay. China clearly won’t allow itself to become a victim, nor the global trading system.

Last Saturday, China’s Minister of Foreign Affairs position was issued and reported by Global Times:

The Chinese government's position on opposing US abuse of tariffs was released on Saturday. "As openness and cooperation is the trend of history, the world will not and should not retreat to mutual isolation and division," the statement said. Mutual benefits and win-win outcomes reflect the common aspirations of all people, while beggar-thy-neighbor economic bullying will ultimately backfire.

"It is the shared responsibility of the international community to make economic globalization more open, inclusive, universally beneficial and balanced," it said.

Since then, Global Times, which is an unofficial voice of China’s government, has issued two editorials, one on Sunday and one today, Monday April 7th, the first strong, the second stronger in response to Trump’s vow to increase the duty 50%. The fraction of China’s GDP that results from trade with the Outlaw US Empire is 3%. Let’s look closer at the trade numbers as provided in another excellent essay:

So, let’s put China’s trade relations with the US into some context of magnitudes. In 2024, the United States reported a goods trade deficit with China of approximately $295.4 billion, indicating that U.S. imports from China exceeded exports by this amount. This comprised American exports of $143.5 billion and imports from China of about $438.9 billion. Incidentally, for the reciprocal tariffs calculation, the result is $295.4 / $438.9 = 67%. The reciprocal tariff imposed on China as announced is 34%. Yet, the surplus China has with the US represents less than 5% of its total trade volume in 2024. Put plainly, the US market is not as important as it once was.

Now, let’s put the surplus with the US into per capita terms. For 2024, China’s population was estimated to be around 1.408 billion people. This means the trade surplus with the U.S. is in the order of $209.80 per person. In 2024, China’s GDP per capita, adjusted for purchasing power parity (PPP), was estimated to be approximately $19,436 international dollars. China’s trade surplus with the U.S. is equivalent to 1.08% of GDP per capita. The implication of this is that adjustment magnitudes aren’t particularly big, which in large part is what the fiscal and monetary policy measures announced at the ‘two sessions’ in March 2025 are designed to address. Of course, it goes without saying that in aggregate the adjustment magnitudes are readily manageable, but it should be noted that the mechanics will be invariably a little uneven as different sectors and enterprises are impacted differently. But these are manageable through nimble policy execution….

Firstly, it's worth noting that in 2023, China’s trade surplus was approximately $593.9 billion; the total value of international trade was estimated to be around $31 trillion. This means that China’s total trade surplus is about 1.92% of the total value of world trade. For those who speak alarmingly about China’s surpluses, once placed into a global context, it is clear that the alarm is not warranted. [My Emphasis]

Facts and figures make lies out of Outlaw US Empire and European propaganda. Now that we have some of those as reference points, let’s read those editorials. 6 April:

China values harmony, but firmly says no to economic bullying

In response to the US abuse of tariffs against all its trading partners, including China, under various pretexts, the Chinese government released its position on opposing US abuse of tariffs. The statement clearly said that "pressure and threats are not the right way to deal with China" and that "China-US economic and trade relations should be mutually beneficial in nature." At the same time, China responded with a series of countermeasures. The world has witnessed China's sense of responsibility as a major power that "does not make trouble, but has no fear of it" in the face of unilateralism, protectionism, and economic bullying. It has also observed China's firm resolve to safeguard its sovereignty, security, and development interests, as well as its clear stance on urging the US to return to the right path of dialogue and cooperation.

China and the US differ in history, culture, social systems, and development paths. Yet since the normalization of bilateral relations, despite experiencing ups and downs, they have written numerous success stories of mutually beneficial cooperation and, through practice, have identified a right way to coexist: mutual respect, peaceful coexistence, and win-win cooperation. In the economic and trade sphere, bilateral trade has grown more than 200-fold in the past 45 years, with deeply integrated industrial and supply chains forming a mutually beneficial relationship of "interdependence." Both sides benefit from each other's development and share a strong desire to deepen cooperation. Hence, maintaining stable economic and trade ties and expanding the "cooperation pie" is a shared aspiration of people and businesses in both countries.

Today, the US faces some developmental challenges, such as insufficient competitiveness in manufacturing and growing pressures on once-dominant industries. However, the US government has wrongly chosen to make others pay for its own problems. By shirking responsibility, shifting blame, and resorting to tariff hikes and maximum pressure tactics, it has not solved any real issues; rather, these actions have greatly impacted global markets and the international economic and trade order.

Back in 2018, when the US first launched a trade war against China, public opinion within the US widely held that it was American consumers who bore the brunt. Now, once again, the US is unlikely to gain what it imagined from a trade war—a conclusion echoed broadly across global public opinion, including US media. Whether then or now, China has remained committed to dialogue and communication, striving to build consensus. Its stance has been consistent and clear: There are no winners in a trade war; and the US must not pursue its interests at the expense of sacrificing other countries' legitimate interests.

Some Western media outlets have described China's 11 countermeasures as a "significant warning" to Washington. It is important to clarify that the actions taken by China, in accordance with the law, to safeguard its sovereignty, security, and development interests are in no way intended to harm US businesses or consumers. China has consistently shown its determination to bring China-US relations back on the right track, while also demonstrating its firm resolve not to tolerate the US to recklessly violate global trade rules, undermine the stable relationship that has been established between the two countries, or harm the legitimate rights and interests of Chinese businesses and consumers. It should be understood that only mutual respect between China and the US can lead to peaceful coexistence.

Stability in China-US relations is crucial for the interests of the people of both countries and for global development. The Chinese side well recognizes this, and therefore does not engage in confrontation or zero-sum games, nor does it politicize or weaponize economic and trade issues. Instead, it strives to inject stability and constructiveness into China-US relations and to promote the bilateral relationship back on track.

Regardless of the state of China-US relations, China's policy toward the US has consistently maintained stability and coherence. It has injected positive energy into dialogues at various levels concerning China-US economic and trade relations, and has received widespread welcome and respect from the international community.

If the relationship between China and the US is characterized by "one side benefiting while the other loses," then it would be impossible to discuss the overall momentum of forward development between the two countries. In 2024, the trade volume between China and the US increased by 3.7 percent, reaching a total of $688.28 billion. Since the beginning of 2025, executives from various industries in the US have visited China, viewing technological innovation as a new point of cooperative growth and continuing to increase investments in China. These developments point to an unmistakable fact: Even in the face of protectionism and unilateral sanctions, the essential economic complementarity between China and the US remains unchanged, and the resilience of China-US economic and trade relations is beyond imagination. Cooperation and mutual benefit are the optimal solutions for the development of China-US relations. As the world's two largest economies, China and the US should be "partners and joint winners" in the new round of technological revolution and industrial transformation. The rapid development of artificial intelligence, the growing global demand for green transformation, and the deepening interdependence of global industrial chains all provide new opportunities for China and the US to jointly explore cooperation.

History tells us that when there are more favorable winds than unfavorable ones between China and the US, it is a golden period for the vigorous development of China-US economic and trade cooperation, as well as the deep integration of industrial chains. This not only creates jobs for both countries and brings substantial economic benefits but also enhances the well-being of people in both nations and even the world.

Regardless of how the situation changes, the fundamental fact that the common interests of both sides far outweigh their differences remains unchanged. The historical logic of peaceful coexistence between China and the US, along with the global expectation for stable development of China-US relations, will also remain constant. We hope that the US side will meet China halfway, resolve differences and conflicts through equal consultation, and set an example through words and actions to lay a solid foundation for world peace and prosperity. [My Emphasis]

The #1 problem is Trump doesn’t want mutually beneficial relations as he’s a Zero-sum man—he wins everyone else loses as with the Monopoly game. Thus, there can’t be any “joint winners.” The problem is in Trump’s and many other American’s nature—they must be #1 no matter the cost. Look at the cost in Ukraine and West Asia and before in Vietnam and you ought to get the idea. Now let’s turn to the April 7th item:

Tariff blackmail cannot intimidate China

The US government, under the guise of "reciprocity," has announced tariff hikes on all its trade partners, including China, provoking widespread outrage in the international community. The Chinese government's position on opposing the US abuse of tariffs emphasizes that the US has used tariffs as a tool for extreme pressure and to pursue selfish interests. Previously, China announced a series of countermeasures, and the international community has clearly seen China's firm determination and will to defend its sovereignty, security, development, and to uphold international fairness and justice. Tariff blackmail will not intimidate China, nor will it undermine justice. China does not provoke trouble, nor is it intimidated by trouble. Pressuring and threatening are not the right way in dealing with China.

China's firm stance on striking countermeasures stems from the fact that the US' reason for tariff hikes is utterly unfounded. Under the guise of addressing "unfair foreign trade practices," the US has slapped high tariffs on its global trade partners. In reality, this is nothing more than protectionism and unilateral bullying—political blackmail wrapped in the cloak of economic means. Such actions blatantly violate the core rules of the World Trade Organization and trample on China's legitimate rights in global trade, as well as its long-standing efforts to open up. The so-called "reciprocal tariffs" have caused enormous damage to the world trade system and global supply chains, and they will pose a serious drag on global economic growth.

China is an ancient civilization known for its traditions of etiquette and respect. The Chinese people value sincerity and trust as the foundation of their relationships. However, standing firm in the face of pressure and threats is equally a defining trait of the Chinese spirit. Looking back at history, China stood tall even in times of poverty and weakness—much less will it ever yield to hegemony today. Compared to the US government's initiation of a trade war with China in 2017, today we have a much stronger capacity to withstand pressure, richer experience in handling struggles, and comprehensive preparations to face challenges. China's industrial system and technological autonomy have significantly improved, its domestic market and economic structure continue to optimize, and its multilateral cooperation and trade partnerships have become more diverse. These factors give China greater confidence in the face of risks. As Bloomberg put it, "China has already trade-war-proofed its economy."

More importantly, China stands on the side of morality and historical righteousness. The US' latest round of tariff hikes targets more than 180 countries and regions around the world, including even the United Nations-designated "least developed countries." Some commentators have noted that such high tariffs will deal a devastating blow to vulnerable nations with narrow economic structures and heavy reliance on exports. China's decisive countermeasures against the erroneous practices of the US not only defend its own interests but also actively uphold a fair and free world trading system.

China's countermeasures are not a call to confrontation, but a declaration to defend fairness. Amid the US repeatedly wielding the tariff stick, China has consistently responded with reason, strength, and restraint. Behind this calm and composed approach lies China's firm understanding that the key is to focus on doing its own things well. No matter how the US cracks down on or pressures it, China remains steadfast in its development and progress. More importantly, China is committed to the path of international fairness and justice and is willing to contribute certainty to global progress through its own development. This reflects the great vision of the Chinese nation, embodying the value pursuit of promoting the building of a community with a shared future for mankind.

The trade volume between China and the US is enormous. The high tariffs imposed by the US will inevitably impact the Chinese economy in the short term. China has ultimately made a "difficult but correct" decision. This confidence stems not only from China's economic strength but also from the fact that countries globally are participating in economic globalization and benefiting from it, as well as from the depth and breadth of economic and trade cooperation between China and the US.

After the US announced "reciprocal tariffs," Gavin Newsom, the governor of California, the largest manufacturing base in the US, immediately stated, "California is not Washington," and that his administration will pursue its own "strategic trade relationships" with international trade partners. This demonstrates that the global trade system, based on industrial chain division of labor and mutual benefit among countries, possesses a robust vitality that cannot be shaken by any political decision lacking realistic logic.

No one can stop China's development, and China-US economic and trade cooperation aligns with the will of the people. The trend toward economic globalization is an inevitable direction. Time will ultimately prove that the tide of history is unstoppable, moving forward relentlessly, and the Chinese people possess sufficient wisdom and strength to meet challenges, both today and in the future. China will continue to firmly stand on the right side of history and on the side of human civilization's progress, working together with the international community to contribute greater strength to humanity's peace and development. At the same time, we also urge Washington to immediately stop unilateral tariff measures and to resolve trade differences in an equal, respectful, and reciprocal manner. [My Emphasis]

IMO, both editorials and previous articles on the topic of trade show that business’s interests are not shared by Trump 2.0. And as with his targeting the poorest of the poor nations, he has no thought for the results of his actions on Americans. All that is proven by his actions and speech; I didn’t invent any of it. Political resistance has already begun in a manner unlike Trump 1.0 when BigLie media tried to smear him out of office and crushed what remained of its reputation for a majority of Americans. That generated a myth of sorts whose result was to expose the deep oligarchic nature of the Outlaw US Empire. The cure isn’t to rely on the tainted D-Party but to capitalize on the great ferment and overall discontent with the US political system to build a People’s Party that can field candidates for Congress in 2026. Another massive problem is the sordid impact of AIPAC on our governance to the point where two consecutive presidents openly abet Genocide in Palestine, with Trump desirous of attacking Iran, another nation for which he has an irrational hatred likely spawned by his Zionism. But that’s another topic.

As I finish, it appears US markets are experiencing a dead cat bounce. We’ll see how the current instability pans out. I still expect to see a constitutional challenge to Trump’s tariffs. As Sachs and Judge Napolitano have explained, they most certainly are, but they must be adjudicated. The overall global trade impact is currently being discussed. Here’s one bit of insight:

Today, the U.S. accounts for about 15 percent of global trade and about 11 percent of China's trade. This share has been declining as global trade continues to expand, with the United States accounting for about 20% of global trade in 2018. From a relative point of view, the United States is less important today than it once was, as recognized in a recent article in the Financial Times. The threat of losing access to the U.S. market no longer has the same impact on the country [China] or the entire system as it once did. Most countries are able to cope with any tariff storm to some extent within a reasonable amount of time. [My Emphasis]

From 20-15% in just seven years is quite a rapid decline. Since there are fewer US products yearly wanted internationally, and a substantial portion of trade is in oil, oil products and LNG, most nations will have other choices and can avoid damage from tariffs. The first quarter of the year has ended, so it will be interesting to see the results. Also, the financial jiggering by the Outlaw US Empire’s federal government isn’t the economy at large. Indeed, the trade figures result mostly from non-government purchases. Thus, the historical tariff results from Trump 1.0 linked to up top give an idea of their performance this time—Trump’s bellowing that they were a success doesn’t make them so.

*
*
*
Like what you’ve been reading at Karlof1’s Substack? Then please consider subscribing and choosing to make a monthly/yearly pledge to enable my efforts in this challenging realm. Thank You!