I have not talked about China in quite some time but I think it has not been necessary as most have seen the China I have warned about. Even the trolls that used to argue that tariffs on Chinese products was an unnecessary tax on consumers have disappeared. However. we are left with a China that is now more openly militant then ever. I have finally had a chance to canvass my insiders. Here is the short version: Xi's crackdowns are getting more extreme as he tries to hol...d on to power. The Politburo will likely let him continue until they see a sign that the world has woken up. Currently Xi is getting away with his power plays because it appears to be working. However, his heavy handedness is insight into how desperate his situation is. As I have noted a number of times that losing leadership in China does not mean you retire to Martha's Vineyard like in the US. The Germans appear to now understand they are caught in a difficult place and their intelligence agencies have been pointing out that the Chinese are not only the source of the virus but unrepentant. If the Germans join the US that would drag the rest of the EU with them. Italy and France are so full of Chinese businesses that it will be more difficult for them than the Germans but the World Court may find a number of EU lawsuits if the Five Is all come to the same conclusion about the virus. African countries are about to get a lesson on Chinese loans that I don't think they will stand for. The idea that they will sign over their natural resources ala Venezeula may not turn out as they think. Per Forbes, "China needs what Africa has for long-term economic and political stability. Over a third of China's oil comes from Africa, as does 20% of the country’s cotton." Per the WaPo, "The stories that China was now a “land grabber” in Africa seemed to make sense. After all, China has 9 percent of the world’s arable land, 6 percent of its water and over 20 percent of its people." I suspect China is about to find out what other's who have tried to 'colonize' Africa to exploit their natural resources have learned. Should the EU and US pursue financial retribution the current tensions between India and China may play out well for the free world. By 2030 India will be the largest consumer market and helping India thrive may be the ultimate stop gap against the Chinese. Hold on tight this may be a very scary ride for world peace but I hope unlike the last 40 years American politicians will quit hoping that China is going to become a truly open society and democratic. It is not going to happen. China is our biggest threat even though I suggest we keep trading with them but with an eye towards JUST that only. Bring key industry home by use of tariffs and incentives and let China go back into the trinket business.
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