CHINA | WHAT REALLY HAPPENED


CHINA

Jul 15 09:12

CHINA takes control of GOLD from the COMEX 

The correlation between Gold and the USD/CNY exchange rate has become clear recently. I first cited the idea of Gold being pegged in yuan terms in February, based on the increasingly narrow range in the Gold/yuan (or “XAU/CNY”) exchange rate. I emphasized this, given what it means for Gold in that USD/CNY becomes a primary driver of the price of Gold in dollars. Now it’s mainstream, thanks to the escalating trade war between the U.S. and China, and China’s response in devaluing the yuan by ~8% in 3 months.

In addition, Jim Rickards pointed out his belief last week that Gold is pegged against the IMF’s currency, the Special Drawing Rights (or “SDR”), and that China and the IMF are coordinating to keep the SDR within a range of 850-950 against Gold.

Webmaster's Commentary: 

IF China is now directly involved in pricing gold, then the US has already lost the economic war before these various dueling sanctions start to bite, and big-time.

Jul 12 10:20

Consumption is America’s Achilles’ heel in a trade war

US household budgets are so stretched that relatively small price increases cause a reduction in spending. That already is clear from consumer response to rising oil prices.

If the Trump administration’s tariffs on Chinese and other imports turn into noticeable price increases, consumer spending could crumple in a matter of months, and US economic growth could fall to close to zero from an estimated 2.8% to 4% for the second quarter.

Jul 12 10:00

Here's How China Can Crush US Tech Firms If Trade War Escalates

President Trump rattled stocks on Wednesday after the Commerce Department rolled out its list of Chinese products, representing $200 billion in imports, that could soon face 10% tariffs Tuesday night - the latest sign that the escalating trade war between the US and its largest economic rival is still heating up. And, echoing recent comments from Morgan Stanley, on Wednesday morning, Bloomberg pointed out that China could soon opt to "trip up" US tech firms operating in the region, something that MS analysts say could have serious repercussions for US equities which have yet to be adequately priced in by the market, and which earned the tech sector a downgrade to underweight.

Jul 12 09:57

Trade War Becomes "Tech War" As Trump Cracks Down On China's Rare Earth Metals

While a closer read of the 200+ page schedule released last night by the Trump administration that listed all the exports captured by the $200BN in new proposed Chinese tariffs revealed some oddities such as badger hair, bovine semen, frog legs, flamethrowers, fetal bovine serum and blood, one product group stood out: rare-earths, an esoteric collection of minerals with strange names (Dysporsium, Europium, Neodymium, Lanthanum and Yttrium), which all have niche, high-tech applications and a history of scarcity. They’re used in everything from cell phones to hybrid vehicles to wind turbines and military hardware, which as Bloomberg writes suggests that the trade war is starting to hit its stride as a tech war.

But more importantly to the trade - or now tech war - is that China is effectively the only producer in size of these critical components that keep America's high tech industry running.

Jul 12 09:17

China Prepares To Dominate South Pacific With Week Of Electronic Warfare Drills

While the Trump administration unveiling another round of tariffs on Chinese goods worth $200 billion - for which China's Commerce Ministry is planning "countermeasures," Beijing quietly began conducting military drills at five bases for electronic warfare, cybersecurity, reconnaissance and tactical strikes at five training bases, reports the South China Morning Post.

Jul 12 09:16

Pepe Escobar: China's Silky Charming Of Arabia

President Xi Jinping has promised more than $23 billion in loans and aid to Arab states, as Beijing ramps up ties with the Middle East; this includes aid for Palestine; Beijing foresees importing a whopping $8 trillion from Arab states up to 2025

Jul 12 08:40

Chinese Refiner Stops U.S. Oil Imports, Turns To Iranian Crude

An independent Chinese refiner has suspended crude oil purchases from the United States and has now turned to Iran as one of its sources of crude, media reports, citing an official from the refiner, Dongming Petrochemical Group.

What’s more, the source said that Beijing is planning to slap tariffs on U.S. crude oil imports and replace them with West African and Middle Eastern crude, including crude from Iran. China has already said that it will not comply with U.S. sanctions against Iran and it seems to be the only country for now in a position to do this.

U.S. crude oil exports to China reached 400,000 bpd at the beginning of this month, but now Beijing is planning to impose a 25-percent tariff on these as part of its retaliation for Trump’s latest round of tariffs on US$34 billion worth of Chinese goods. The retaliation began with tariffs on 545 U.S. goods worth another US$34 billion, but, Reuters reports, the oil tariffs will be announced at a later date.

Jul 12 07:02

Oldest Tools Outside Africa Found, Rewriting Human Story

Modern humans' distant relatives left Africa earlier than previously thought—rewriting a key chapter in humankind's epic prequel, according to a discovery unveiled on Wednesday in Nature.

Nearly a hundred stone tools found at the Shangchen site in central China may push back the spread of our ancient cousins—hominins—out of Africa by more than a quarter million years.

The toolmakers lived at Shangchen on and off for 800,000 years between 2.1 and 1.3 million years ago, leaving behind tools that are unprecedented outside of Africa. The site's oldest tools are roughly 300,000 years older than Dmanisi, a 1.8-million-year-old site in the Republic of Georgia with the oldest known fossils of our extinct cousin Homo erectus.

Jul 11 12:52

Heads of Russian, Iranian, Chinese, Pakistani intelligence services discuss IS threat

Heads of intelligence services of Russia, Iran, China, and Pakistan held a meeting in Islamabad on Tuesday to discuss the measures against the threat of aggregation of the Islamic State militants in Afghanistan, Sergei Ivanov, the chief of the Russian Foreign Intelligence Service's press bureau told TASS. The Director of the Foreign Intelligence Service, Sergei Naryshkin, represented Russia. "The discussions focused on the dangers arising from a buildup of the Islamic State on the Afghan territory," Ivanov said. "The conference reached understanding of the importance of coordinated steps to prevent the trickling of IS terrorists from Syria and Iraq to Afghanistan where from they would pose risks for neighboring countries," he said.

Jul 11 12:28

Russia, China to add lunar projects to joint space cooperation program

The program of Russian-Chinese cooperation in outer space for 2018-2022 will be supplemented with projects related to the Moon’s exploration, the press office of Russia’s State Space Corporation Roscosmos said on Wednesday. This decision was made at a session of the joint working group of the two countries on cooperation in outer space, Roscosmos said. "During the session, the Russian and Chinese sides discussed the implementation of bilateral cooperation in outer space for 2018-2022, as a result of which a joint decision was made to supplement this cooperation program with the projects related to the study and exploration of the Moon," Roscosmos said. "The sides also discussed the results of the work of the sub-groups in the sphere of the Earth’s remote sensing, space debris and in the area of the space-related electronic components base whose sessions had been held earlier in Moscow. The sub-groups were set up to develop cooperation under the program of interaction.

Jul 11 11:36

The China Slowdown

Jul 11 09:00

BEX ALERT - It’s clear China is behind North Korea’s latest flip

Confused by North Korea’s sudden hard line? Look to China for answers.

Last week Pyongyang reverted to taunts, calling Mike Pompeo’s trip there “regrettable,” saying America has a “gangster-like mindset” and denying the secretary of state a meeting with Dear Leader, who apparently was obliged to inspect a potato farm instead.

Why? As Sen. Lindsey Graham told “Fox News Sunday,” “I see China’s hands all over this,” adding, “There’s no doubt in my mind that it’s the Chinese pulling the North Koreans back.”

President Trump tweeted Monday his “confidence” that “Kim Jong-un will honor the contract we signed, even more importantly, our handshake.” (No contract, of course, was signed at the end of last month’s Singapore handshaking session.)

Webmaster's Commentary: 

Yep, Trump is going to blame China when the Korea deal falls apart.

Jul 11 08:05

Contesting America? China pumps reconstruction money into Middle East amid US trade war

China has promised a massive package of loans and aid to Middle Eastern nations, while US influence in the region is seemingly fading. Analysts discussed with RT whether Beijing has more in its sights than just economic interests.

Xi, speaking at a meeting with Arab League nation representatives in Beijing, heralded an "oil and gas plus" plan to pour Chinese money into the Middle East. It will include $20bn in loans for projects in countries with reconstruction needs.

Apart from that, China will give $90 million in humanitarian and reconstruction aid to war-torn Syria, Yemen, Jordan, and Lebanon, and $15 million to Palestine.

Jul 10 14:51

US Equity Futures Tumble As US Readies $200 Billion China Tariff List

Just when you thought it was safe to BTFTrade War Dip, a headline hits to remind you that President Trump is anything but done with China.

Bloomberg reports that President Donald Trump is preparing to release a list of an additional $200 billion in Chinese products to be hit with tariffs, according to two people familiar with the matter.

"The list could be released as soon as Tuesday, and likely this week", according to Bloomberg sources. The publication of the list starts a weeks-long process that includes a public-comment period and hearings.

The potential unveiling comes as Trump is stil considering imposing duties on another $16 billion in Chinese goods, following a public hearing later this month. China, of course, as vowed to retaliate tit-for-tat and dollar-for-dollar to all future US tariffs.

The immediate result: Dow futures plunge 200 points in the blink of an eye.

Jul 10 09:23

Trump Confident North Korea Will ‘Honor the Contract’ to Denuclearize

President Donald Trump said Monday that he was confident North Korean leader Kim Jong Un would “honor the contract” the two leaders signed last month in Singapore, while suggesting that China was “exerting negative pressure” on the agreement amid its trade fight with the U.S.

Webmaster's Commentary: 

So, if the Korea deal falls apart, China gets the blame.

Jul 10 08:33

China makes serious preparations for hot war with USA

The Chinese government, together with the Chinese army, has developed a strategy to counter the supremacy of the United States. Japanese news agency Kyodo News published an internal document, the provisions of which will give China an opportunity to "outrun" the weakening supremacist state. The document also provides for an opportunity to settle the conflict and win the war with the US. According to this document, risks of a military confrontation between the United States and China are expected to grow dramatically. In a nutshell, not only does Beijing intend to defend China - the PRC wants to challenge the US domination at sea to win control over sea trade routes. Kyodo News and the Japan Times said with reference to the document that China is preparing to expand its military presence and influence far from its borders.

Jul 10 06:18

COMMUNIST PROPAGANDA: Soften Criticism Of Trump, Beijing Orders State Media

Beijing orders state media to soften criticism of Donald Trump as the US and China tone down their trade war rhetoric

Jul 10 02:41

For centuries, some Buddhist monks followed self-mummification, which meant a rigorous diet followed by lying in a tomb, ringing a bell each day they were still alive

As Buddhism spread across Asian countries over the past centuries, various forms of Buddhist schools and teachings emerged as the religion came into contact with many local cultures. Some Buddhist monks observed that all life is sacred, and their school taught followers to move around the temple with the utmost caution, that they should not even by accident squash an ant or any other tiny insect. Other schools and teachings have, however, adopted fairly bizarre beliefs and practices, like learning how to self-mummify in order to achieve an advanced level of enlightenment. This did not produce your typical mummy such as those embalmed in ancient Egypt.

Jul 09 14:41

POSSIBLE ANTI-CHINA BEX - Chinese Millionaires Fleeing to United States

As the Yuan continues to slide downward towards it's worst month ever, more than a third of Chinese millionaires are looking to the United States for a stable place to live and invest their money.
These results came from a study by the Huran Research Institute, an English based Chinese research firm along with the Visas Consulting Group, an immigration advisory group. They surveyed 400 Chinese citizens with an average net worth of $4.5 million.

Webmaster addition: Trying to suck more money out of China?

Jul 09 12:41

Experts Warn Of Chaos For The U.S. Economy As China Declares That “The Biggest Trade War In Economic History” Has Begun

Nothing is going to be the same after this. On Friday, the United States hit China with 34 billion dollars in tariffs, and China immediately responded with similar tariffs. If it stopped there, this trade war between the United States and China would not be catastrophic for the global economy. But it isn’t going to stop there. Donald Trump is already talking about hitting China with an additional 500 billion dollars in tariffs, which would essentially cover pretty much everything that China exports to the U.S. in a typical year. The Chinese have accused Trump of starting “the biggest trade war in economic history”, and they are pledging to fight for as long as it takes.

Jul 09 09:55

China Threatened By "Vicious Circle Of Panic Selling" From Marketwide Margin Call

Two weeks ago, when commenting on the PBOC's latest required reserve ratio cut, we pointed out that one of the more prominent risks facing the Chinese stock market, and potentially explaining why the Shanghai Composite simply can't catch a bid during the recent rout, is the risk of a wave of margin calls resulting in forced selling of stocks pledged as collateral for loans.

The pledging of shares as loan collateral - a practice that has gotten increasingly more popular over the years - has been especially prevalent among smaller companies as we observed in February and initially, last June. Unlike in the U.S., where institutional shareholders are a big market presence, private Chinese firms are often controlled by a major shareholders, who often own more than half of company. These big stakes are the most convenient tool for such big shareholders to raise their own funds.

Jul 09 09:54

Chinese "Laser AK-47" Field Test Video Seeks To Silence Skeptics

To convince skeptics and naysayers the Chinese company that was the focus of international headlines after unveiling its “laser AK-47” that it claimed can set fire to a target from nearly a kilometer away has released a video of the weapon being tested as proof of its capability.

As we highlighted, among the first to call bullshit on the claims published in a South China Morning Post report detailing the ZKZM-500 produced by the Xian Institute of Optics and Precision Mechanics under the Chinese Academy of Sciences was a US military and veteran website.

After all, the original report touted the weapon could "burn through clothes in a split second… If the fabric is flammable, the whole person will be set on fire. The pain will be beyond endurance," according to a Chinese weapons expert cited.

Jul 09 09:46

BEX ALERT - ‘Their hands are all over it’: China behind N. Korea’s condemnation of US talks, Sen. Graham says

Senator Lindsey Graham (R-South Carolina) has accused Beijing of being behind Pyongyang’s condemnation of recent talks with US Secretary of State Mike Pompeo, while making bizarre threats to North Korea’s leadership.

Speaking on Fox News Sunday, Graham said: "I see China's hands all over this," adding that there is "no doubt" in his mind that China is "pulling the North Koreans back."

Graham cited the ongoing trade war between Washington and Beijing as the possible motivation. "We're in a fight with China."

Jul 09 09:23

Chinese Refiner Halts US Oil Purchases, May Use Iran Oil Instead

With the US and China contemplating their next moves in what is now officially a trade war, a parallel narrative is developing in the world of energy where Asian oil refiners are racing to secure crude supplies in anticipation of an escalating trade war between the US and China, even as Trump demands all US allies cut Iran oil exports to zero by November 4 following sanctions aimed at shutting the country out of oil markets.

Concerned that the situation will deteriorate before it gets better, Asian refiners are moving swiftly to secure supplies with South Korea leading the way. Under pressure from Washington, Seoul has already halted all orders of Iranian oil, according to sources, even as it braces from spillover effects from the U.S.-China tit-for-tat on trade.

Jul 09 09:18

Chinese Production Of Banned Chemical Blamed For Ozone-Depleting Emissions

Illegal Chinese production of a banned crude oil-derived chemical used for cheap home insulation is thought to be the main source of rising emissions of gas that is damaging the ozone layer, according to environmental group Environmental Investigation Agency.

Two months ago, scientists published a study in the scientific journal Nature, according to which there has been an unexpected and persistent increase in global emissions of the ozone-depleting trichlorofluoromethane (CFC-11) substance that has been banned since 2010.

The thing that baffled scientists was that after a constant drop in the atmospheric CFC-11 concentrations between 2002 and 2012, the rate of decline has slowed down by around 50 percent since 2012, suggesting unreported new production.

Jul 08 18:42

Chinese Refiner Halts US Oil Purchases, May Use Iran Oil Instead

"We expect the Chinese government to impose tariffs on (U.S.) crude. We will switch to either Middle East or West African supplies."

Jul 08 08:11

US warships sail through Taiwan Strait for first time in a year as China tariffs kick in

Two US destroyers, the USS Mustin and the USS Benfold, have passed through the narrow waterway separating mainland China from Taiwan. The maneuvers come as an unravelling trade spat ramps up tension between Washington and Beijing.

The US warships entered the Taiwan Strait on Saturday and were still in the waterway as of Saturday night, Taiwan's defense ministry reported.

Jul 08 06:13

Book Review - Losing Military Supremacy: The Myopia of American Strategic Planning by Andrei Martyanov

The fact that the US is facing a profound crisis, possibly the worst one in its history, is accepted by most observers, except maybe the most delusional ones.

When speaking of this crisis, most people will mention the deindustrialization, the drop in real income, the lack of well-paid jobs, healthcare, crime, immigration, pollution, education, and a myriad of other contributing factors. But of all the aspects of the “American dream”, the single most resilient one has been the myth of the US military as “the finest fighting force in history”.

Americans have no experience of real warfare (that is warfare in defense of their own land, family and friends) at all. For Americans warfare is killing the other guy in his own country, preferably from afar or above, while making a ton of money in the process. For Russians, warfare is simply about surviving at any and all cost. The difference couldn’t be greater.

Jul 07 11:16

City wall discovered that’s 1,000 years older than Rome, lost civilization found in China

Chinese archaeologists had always believed that Chinese culture slowly expanded from a point along the Yellow River. This belief was put into question when two massive sacrificial pits were discovered during a dig near the quiet Chinese village of Sanxingdui, which is situated in the Sichuan province of China. The discovery of these pits has turned the archaeological world on its head.

In 1929, a farmer digging a new well discovered a stash of jade relics, which led Chinese archaeologists to excavate the area around the village. Nothing came of these explorations until 1986, when two enormous sacrificial pits were found. Uncovered from the pits were thousands of pottery, jade, bronze, and gold artifacts that were not seen elsewhere in China before.

Jul 07 10:54

Leaked Chinese Memo Warns Of "Thucydides Trap" With US, "War Is Unavoidable"

A series of leaked internal documents reveal that China's military reforms are aimed at allowing Beijing to "manage a crisis, contain a conflict, win a war" and overtake the United States in military strength, according to the Express.

The leaked documents were published by the Central Military Commission in February for the purpose of spreading President Xi Jinping’s “thought on strengthening the armed forces”.

If the reforms go ahead, they will lead to heightened tensions with China’s neighbouring countries, including Japan, in the East and South China Seas and the US. -Express

“As we open up and expand our national interests beyond borders, we desperately need a comprehensive protection of our own security around the globe,” read the leaked documents, which adds that a strong military is the best way to "escape the obsession that war is unavoidable between an emerging power and a ruling hegemony".

Webmaster's Commentary: 

War with China, by the US, at this point, could well be devastatingly horrific for this country; and I say that, because the US military, at this point in its existence, doesn't have the troop strength, the money, the manufacturing, or the troop strength to insure a positive outcome to a conventional war with China.

And the question which must be asked is, knowing how greatly China has improved its weaponry and ocean and air military capabilities against those of the US, why has this been allowed to happen by subsequent administrations, and put our military development in these areas behind the proverbial 8 ball?!?

Jul 07 10:46

No Gold Ever Leaves China ... They Are Hoarding It and Russia Is Buying It

- U.S. China trade war escalates as Russia stockpiles gold on the Keiser Report
- Trump's erratic and risky trade policies pose a risk to dollar as reserve currency
- China, Russia "getting cosier" with Silk Road and increasing economic cooperation
- China and Russia "want to do business outside of the dollar" and "dollar will finally reach its comeuppance"
- "No gold ever leaves China ... they are hoarding it and Russia is buying it"
- Makes sense to be "accumulating lots of gold"

In this final episode of the Keiser Report from Paris, France, Max and Stacy discuss if a genuine trade war has erupted between China and the U.S. and look at nations, including Russia, stockpiling gold and also cover our recent market update (June 21): Russia Buys 600,000 oz Of Gold In May After Dumping Half Of US Treasuries In April.

Jul 07 10:06

BEX? Leaked Chinese Memo Warns Of "Thucydides Trap" With US, "War Is Unavoidable"

A series of leaked internal documents reveal that China's military reforms are aimed at allowing Beijing to "manage a crisis, contain a conflict, win a war" and overtake the United States in military strength, according to the Express.

The leaked documents were published by the Central Military Commission in February for the purpose of spreading President Xi Jinping’s “thought on strengthening the armed forces”.

If the reforms go ahead, they will lead to heightened tensions with China’s neighbouring countries, including Japan, in the East and South China Seas and the US. -Express

“As we open up and expand our national interests beyond borders, we desperately need a comprehensive protection of our own security around the globe,” read the leaked documents, which adds that a strong military is the best way to "escape the obsession that war is unavoidable between an emerging power and a ruling hegemony".

Jul 07 09:06

EFFORTS TO SAVE IRAN NUCLEAR DEAL BRING RUSSIA AND CHINA CLOSER TO EUROPE

The remaining parties to the P5+1 nuclear deal, China, Russia, Germany, France, and Britain are all trying to save the pact since the pullout of the US. Whether they’ll be able to do so remains to be seen, but the joint effort is bringing the nations all closer together.

A Friday meeting in Vienna centered on saving the deal, and also provided opportunities for top-ranking diplomats from the various nations to hold closed-door, sideline talks. With the US having withdrawn itself from the deal, discussions on the deal are effectively now bringing everyone else in line and facing the US opposition to the deal as a mutual problem.

The nations are not only in agreement about the need to save the deal but seem to be heading in a direction which Iranian FM Javad Zarif called “practical,” in their united opposition to the US pullout from the deal.

Webmaster's Commentary: 

Ah, yes, one of the "brilliant" unintended consequences of President Trump backing out of the P5+1 deal, to appease Sheldon Adelson and Benyamin Netanyahu; the world is coming closer together to save the Iran deal!

Bravo, Mr. President, for your unending idiocy, and this listening to really bad advice, on the issue of Iran.

And if you haven's seen this (and I would sincerely doubt that anyone in your cabinet would have referred this to you), please check out the following video:

Don't Tell Mother I'm In Irana,available on the subscription channel of Nat Geo.

Jul 06 12:49

"It's Going To Get Ugly"

In a column published early this morning - shortly after the US's first round of tariffs on imported Chinese goods took effect - Reuters' Breakingviews columnist Christopher Beddor declared that the trade war between China and the US will be "fought in the trenches, and it's going to get ugly." And while exporters might be the first to feel the squeeze, the trade tensions will likely dampen investment and impede China's efforts to reform its economy. It also "marks a moment of mourning" for investors who had hoped that "the two largest economies could work things out."

Webmaster's Commentary: 

What really concerns me here, is how quickly trade wars can morph into shooting wars.

And unfortunately, just because any decision the US goverment could make, could be one of the most ham-fistedly, pig-headedly stupid things the US government could do, is utterly no guranatee tht it will not make such a decision.

I hope and pray that people in both Beijing and DC come to their collective senses, and handle these complex economic issues with both reason, and cooperation.

A war against China right now, with the US military not having the weaponry; the manufacturing; the money; or the troop strength, to insure a positive outcome to a conventional war, could well be catastrophic to America's interests.

Jul 06 11:18

WHY SOYBEANS ARE AT THE HEART OF THE U.S.-CHINA TRADE WAR

China’s newly imposed tariffs against U.S. soybeans herald a major trade shift for a crop that’s soared to prominence in recent decades.

Jul 06 10:50

Trump's $500 Billion Trade Threat Makes China's Already Battered Investors Shiver

Shanghai: Six months of wrangling over trade tariffs with the United States has wiped out about a fifth of China's stock market value and driven its currency down sharply. But those moves may have just been a down-payment on what is yet to come.

Shanghai's benchmark share index is down roughly 22 percent since January when U.S. President Donald Trump's first trade tariffs on solar panels were announced. It has fallen 9 percent since June 19, when Trump outlined his plans to tax a lot more Chinese imports than he initially proposed.

Tariffs on the first batch of $34 billion worth of Chinese imports kicked in on Friday. Beijing said it had no choice but to respond in kind by taking a similar amount of U.S. goods coming into China. U.S. tariffs on another $16 billion of Chinese goods are due to go into effect in two weeks, Trump said on Thursday.

Jul 05 16:16

Chinese Yuan Fall Sparks Fear A Trade War Could Turn Into A Currency War

China’s currency slid to a fresh six-month low against the dollar Wednesday, sparking speculation China could use a weakened yuan as a weapon if tensions with the U.S. turn into an out-and-out trade war.

Jul 05 14:37

Leaked Note From Chinese Think Tank Warns Of ‘Potential Financial Panic’

As trade tensions continue to skyrocket and markets around the globe are affected, a Chinese government-backed think tank had a memo leaked warning of potential financial panic. China, the world’s second-largest economy, sees the rising tensions as a cause for concern.

Jul 05 12:54

CHINA: We are not afraid of your "psychological terror"! We do not bow our heads down in front of America

The US threat to impose increased obligations on China and other trading partners is a "psychological terror", said the representative of the Ministry of Commerce of China, Hao Feng.

According to him, the introduction of increased tariffs by Washington will endanger global production chains.

"The United States opens fire all over the world, as well as itself," added Hao Fen.

He stressed that Beijing "will not drop its head against threats and blackmail, and will also be lazy in deciding to protect free trade and the international trade mechanism."

"China will work with the entire world community to resolutely resist unsuccessful protectionism and unilateral policy, and will make every effort to protect stability and the international trade environment," Feng stressed.
He also urged all countries to take decisive action on US trade policy.

Jul 05 11:39

The New Oil Cartel Threatening OPEC

When reports emerged that India and China are in talks about forming an oil buyers’ club, OPEC was probably too busy with its upcoming June 22 meeting to concern itself with that dangerous alliance. Now, it may be time for it to start worrying.

Jul 05 11:37

China's 'Dreaded' Vote Of Confidence

Chinese officials are getting nervous. Everyone knows that whenever your favorite sports team struggles and fans are calling for the head coach’s head, any owner or general manager who then issues the dreaded (from the coach’s perspective) vote of confidence is essentially sealing his fate. PBOC Governor Yi Gang issued a similar sort of statement today.

CNY is in freefall, which is dangerous in and of itself but more so given the (mistaken) political ramifications. Not only do the Chinese bear the brunt of “dollar” misfortune, they will also be blamed, just as they have been already, for engineering the stunt in the name of trade “stimulus.”

Jul 05 10:01

Exclusive: China presses Europe for anti-U.S. alliance on trade

China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump’s trade policies at a summit later this month but is facing resistance, European officials said.

Jul 05 09:33

CHINA REJECTS US "BLACKMAIL" ON EVE OF TRADE WAR, VOWS TO FIGHT BACK

With just hours left until the US officially declares trade war on China at midnight on Friday, when the Trump admin enacts tariffs on $34bn in Chinese products and Beijing retaliates instantly, China on Thursday rejected "threats and blackmail" ahead of a threatened U.S. tariff hike, once again striking a defiant stance in the dispute which companies have warned could flare into a full-blown trade war and chill the global economy.

A government spokesman said Beijing will defend itself if U.S. President Donald Trump goes ahead Friday with plans to raise duties on Chinese goods in the escalating conflict over technology policy. The Chinese government has already issued a list of U.S. goods for retaliation, but the Commerce Ministry said it will wait to see what Washington does.

“China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade,” said ministry spokesman Gao Feng at a news conference.

Webmaster's Commentary: 

THIS... is about to get ugly!!

Jul 05 06:37

Russia's Roscosmos to skip UK’s Farnborough airshow. Russia, China to hold experiment to increase satellite data accuracy

Russian state corporation Roscosmos will skip the 2018 Farnborough Airshow, scheduled to run from July 16 to July 22 in the UK, head of the corporation’s press service Vladimir Ustimenko informed TASS on Thursday...

Jul 04 12:28

China Changes Time It Starts Trade War Against US To Avoid Striking First

With the US set to launch the first salvo in the trade war against China at 12:01am on Friday when Washington imposes 25% tariffs on $34 billion in Chinese products, and with Beijing set to immediately respond, a logistical issue emerged: who gets to strike first?

Due to Beijing being 12 time zones ahead of the US, and because China also planned to launch retaliatory tariffs against the US on Friday at midnight, it would mean Beijing would technically start the trade war, because 12:01 a.m. in Beijing on Friday would mean noon Thursday in Washington. So upon reflection, and realizing that the earth's curvature could make China appears as the aggressor, China said that it wouldn’t implement tariffs ahead of the U.S. on Friday, after previous arrangements put it on course to do so.

Jul 04 12:23

Europe Turns Down Chinese Offer For Grand Alliance Against The US

Publicizing its growing exasperation in dealing with president Donald Trump who refuses to halt the tit-for-tat retaliation in the growing trade war with China - which is set to officially begin on Friday when the US slaps $34 billion in Chinese exports with 25% tariffs - but has a habit of doubling down the threatened US reaction to every Chinese trade counteroffer (after all the US imports far more Chinese goods than vice versa)...

... China has proposed a novel idea: to form an alliance with the EU - the world's largest trading block - against the US, while promising to open up more of China's economy to European corporations.

Webmaster's Commentary: 

I think that Europe, collectively, may rue the day when they opted out of China's proposed economic plan here.

Jul 04 12:14

U.S. Sidelined as Five Powers Set to Give Iran New Assurance

Top diplomats from world powers will meet on Friday in a bid to defend their landmark nuclear deal with Iran from attack by President Donald Trump.

Foreign ministers from China, France, Germany, Russia and the U.K. will convene in Vienna for the first time without the U.S. in order “to ensure the continued implementation” of the accord, which granted Iran a reprieve from sanctions in exchange for limits to its nuclear program, according to a European Union statement on Wednesday. Trump abandoned the deal in May and reimposed sanctions against countries and companies doing business with Iran.

“Austria and the European Union are ready to maintain and deepen the framework for cooperation with Iran,” Austrian President Alexander Van der Bellen said following a meeting in the Austrian capital with his Iranian counterpart, Hassan Rouhani. U.S. threats to impose secondary sanctions violate the rights of European companies and individuals, Van der Bellen said.

Webmaster's Commentary: 

These threats are sounding old, and impossible to pursue by the American government; they are going to have to change tactics, and soon.

Jul 04 10:30

China's Aircraft Carrier Fleet Poised to Expand Rapidly

There is a “considerable chance” the number of aircraft-carrying ships available in the Chinese navy will be seven instead of four by 2025 because of a “lower profile defense program” that has already taken shape, a new report indicates.

The People's Liberation Army-Navy has plans to build three large aircraft carriers in addition to the Liaoning, a carrier whose frame was built in the former Soviet Union before being purchased and retrofitted by the Chinese. Each follow-on carrier to join the Liaoning in the Chinese carrier fleet is at various stages of development and construction, with the Type 001A, the country's first domestically built carrier, already past its first sea trials.

In addition to the heavy duty carriers, though, the Chinese navy has several smaller aircraft carriers in development similar to the America-class and Wasp-class ships operated by US Marines and the US Navy, military analyst Abraham Ait wrote in a report published by the Diplomat June 30.

Jul 04 08:57

China’s Warning to Tourists Makes America Sound Like Third-World Banana Republic

In a memo to tourists, China is warning citizens planning on traveling to the United States to keep watch over their surroundings at all times, avoid visiting U.S. hospitals without American health insurance, and to not venture out alone at night.

According to the South China Morning Post, the Chinese embassy in the United States is warning tourists planning trips to the U.S. to be wary of shootings and theft, and to not get sick or injured lest a foreign visitor be gouged by the United States’ absurdly expensive healthcare system.

“Social security in the States is not satisfactory. Shootings, robbery, theft happen frequently,” a memo from the Chinese embassy read. “Be aware of suspicious people around you and avoid going out alone at night.”

Jul 03 11:59

Trump To Block Chinese Telecom Giant From Entering US Market

As Trump's trade war with China escalates, and is set to go live this Friday when $34 billion in Chinese exports are hit with a 25% tariff, exhausted traders and concerned investors are wondering where the next surprise from the Trump administration will come from: after all, after backing off on ZTE (to get China's blessing on the North Korea summit) Trump then promptly pivoted and nearly blocked all Chinese investments in the US, prompting a furious response from Beijing. Meanwhile, the White House somehow threatened to impose over $600 billion in tariffs on Chinese imports even.

Meanwhile, as part of the verbal escalations, the White House has proposed nearly $800 billion in tariffs on Chinese imports, which would cripple the global economy and unleash a global depression if fully implemented.

Jul 03 11:50

Chinese Yuan Suddenly Tumbles

Whether or not the PBOC finally decided to show the US it means business with the "weaponized" Yuan, but moments after today's PBOC yuan fixing, which dropped against the dollar by a whopping 340 pips to 6.6497 from 6.6157 - which was slightly lower (i.e. stronger) than expected - the offshore yuan tumbled with the selloff accelerating as the currency took out one large figure after another, eventually crossing what until now had been seen as a key support level at 6.70, then quickly shooting lower and dropping as low as 6.73.

Jul 03 09:03

"Shooting And Robbery Are Frequent": China Warns Its Citizens About Risks Of Travel To The US

The Chinese Embassy in Washington issued a security advisory last week, warning Chinese citizens traveling to the US that "shooting, robbery, and theft are frequent." Tourists were also warned to “be alert to suspicious people around you, avoid going out alone at night."

Jul 02 08:04

Pew, pew! China develops AK-47-sized low lethality ‘laser rifle’

Chinese Armed Police units may soon have a new weapon, a portable laser beam that can reach targets from a kilometer away and is powerful enough to set flammable things on fire.

Jul 02 00:15

The New Cold War: Russia, China And The United States Are Feverishly Preparing For Nuclear Conflict

While most of the world is focused on the World Cup and other trivial pursuits, the three global superpowers are busy jockeying for nuclear superiority. Historians will debate the extent to which the first Cold War ever really ended, but everyone pretty much agrees that a new Cold War has now begun. Russia, China and the United States are all racing to develop the next generation of nuclear weapons and delivery systems, and at this moment it is unclear who will ultimately come out on top in this arms race

Jun 30 10:05

The China housing crisis builds up steam

Jun 29 09:26

How Long Can the Federal Reserve Stave Off the Inevitable?

When are America’s global corporations and Wall Street going to sit down with President Trump and explain to him that his trade war is not with China but with them. The biggest chunk of America’s trade deficit with China is the offshored production of America’s global corporations. When the corporations bring the products that they produce in China to the US consumer market, the products are classified as imports from China.

In other words, to put it in the most simple and clear terms, millions of Americans lost their middle class jobs not because China played unfairly, but because American corporations betrayed the American people and exported their jobs. “Making America great again” means dealing with these corporations, not with China. When Trump learns this, assuming anyone will tell him, will he back off China and take on the American global corporations?

Jun 29 08:53

"This Has Become An Issue" - Beijing Denies US Request For Talks Over Airline Dispute

President Trump's trade spat with China isn't the only source of tension between the world's two largest economies. Since even before Trump's inauguration, the US's relationship with Taiwan has become an increasingly sensitive issue in Beijing - particularly after Trump publicly mused about abandoning the US's long-standing "One China" policy. Beijing has retaliated by holding a massive live-fire exercise in the Strait of Taiwan (showing off China's expanding military might). And in what looks like a test of corporate allegiance, Beijing has also instigated a mini-diplomatic crisis over its demands that foreign airlines refer to Taiwan on their websites as "Taiwan, China" - a request the White House has dismissed as "Orwellian nonsense."

Jun 29 08:52

More Countries Start Exploring Alternatives To The US World Order

There are two countries that more than others show how the Western world order is undergoing a profound change. Japan and Turkey occupy two distinct and diverse geographical areas, yet they share many of the same strategic choices about their future. Their geopolitical trajectory is increasingly drifting away from Washington and moving closer to China, Russia, India and Iran.

Jun 28 11:18

‘We’re not colonialists & don’t cause chaos’: Xi tells Mattis China won’t concede an inch of land

Beijing has no colonial ambitions but will never shy away from defending every inch of its territory, President Xi Jinping told US Defense Secretary James Mattis, amid growing tensions over the South China Sea and Taiwan.

“Regarding the issue of China’s sovereignty and territorial integrity, our attitude is firm and clear. The territory left behind by our ancestors must not be lost. We do not want to share anything with others,” Xi told Mattis in the Great Hall of the People in Beijing.

Jun 28 10:53

China won’t concede an inch, Xi Jinping tells US defence chief Jim Mattis on South China Sea and Taiwan

Chinese President Xi Jinping has told visiting US Defence Secretary Jim Mattis that China will make no concession on its core interests, despite calling for stronger ties between the countries’ militaries.

“Our attitude is firm and clear in terms of Chinese sovereignty and territorial integrity, that we would not lose a single inch of the lands we inherited from our ancestors, while we would not take a single penny of others’ possessions,” Xi said to Mattis on Wednesday in the Great Hall of the People in Beijing.

Mattis’ visit comes at a time of sharp US criticism of China’s militarisation of islands in the South China Sea and tensions over Taiwan, and a trade dispute between the world’s two largest economies.

Webmaster's Commentary: 

Nor should China be expected to refrain from building on these islands, which were restored to them by treaty, after World War 2.

China's moral claim to the diaoyu islands

When countries attempt to mess with treaties, after those treaties have been ratified, those countries attempting to void or reconstruct those treaties must be seen as pathologically incapable of keeping their word.

Jun 28 10:40

HOW LONG BEFORE CHINESE MADE AXON POLICE DRONES BEGIN KILLING AMERICANS FOR A PROFIT?

Not content with police body cams, Axon formerly known as Taser wants to equip police departments with Chinese made surveillance drones.

Three weeks ago, Chinese drone manufacturer DJI reported that they are partnering with Axon.

"DJI, the world’s leader in civilian drones and aerial imaging technology, and Axon the global leader in connected law enforcement technologies, announced an exclusive partnership, to sell DJI drones directly to public safety and law enforcement agencies worldwide through the new Axon Air program."

Axon Air wants to provide police with three different types of surveillance drones; the DJI Phanton 4 Pro, DJI Inspire 1, and the DJI Matrice 210. (To find out more about Axon Air drones click here.)

How long will it take Axon and DJI to sell police bird drones to spy on citizens?

Why is Axon and DJI working together to provide law enforcement with surveillance drones you ask?

Webmaster's Commentary: 

In American law enforcement, "to serve and protect" has devolved to "kill, stun, and maim with impunity"; the evolutions of drones to that effect, is something I have been seeing coming for quite some time now, interspersed with American jurisprudence devolving into Code Napoleon Law, where one is considered guilty until proven innocent.

Jun 28 09:22

China Has Quietly Implemented A 6% Across The Board 'Tariff' On All US Imports

Trump and Xi have spent much of the last few weeks tossing tariff grenades across the Pacific Ocean as retaliatory retaliations grow ever stronger in rhetoric and potential escalations.

Then this week, Trump seemed to back away from his most serious threats (direct Chinese investment restrictions).

We wonder if this is why...

Since Trump started to rattle his trade war sabre, the last three months have seen the offshore Chinese Yuan tumble over 6% (crashing almost 4% in the last two weeks alone)...

Jun 28 09:21

Paul Craig Roberts: "How Long Can The Federal Reserve Stave Off The Inevitable?"

When are America’s global corporations and Wall Street going to sit down with President Trump and explain to him that his trade war is not with China but with them? The biggest chunk of America’s trade deficit with China is the offshored production of America’s global corporations. When the corporations bring the products that they produce in China to the US consumer market, the products are classified as imports from China.

Jun 28 08:06

U.S. charges Chinese university tied to army with export scheme

U.S. prosecutors on Tuesday charged a Chinese university linked to China’s army with conspiring to violate U.S. export laws in order to obtain items from the United States that could be used in anti-submarine warfare.

An indictment filed in federal court in Boston charged China-based Northwestern Polytechnical University (NWPU), along with Shuren Qin, a Chinese national living in Wellesley, Massachusetts, who was arrested last week.

The indictment also charged LinkOcean Technologies, a Chinese company headed by Qin, whose clients, according to prosecutors, include Chinese research institutes and the naval warfare branch of the People’s Liberation Army.

Jun 28 07:37

Australia to pass bill against foreign interference amid tensions with China

Australia is expected to pass new legislation on Wednesday aimed at preventing interference by foreign governments. The move is likely to further stoke tensions with major trading partner China. Mirroring similar laws in the US, Australia’s Foreign Influence Transparency Scheme requires lobbyists working for foreign countries to register as foreign agents. They could also face criminal prosecution if they are deemed to be meddling in Canberra’s affairs, Reuters said. Prime Minister Malcolm Turnbull last year referred to “disturbing reports about Chinese influence” as justification for the bill. The move has strained diplomatic and trade ties with China. China has denied allegations of meddling in Australian affairs and launched a diplomatic protest.

Jun 27 12:00

Leaked Note From Chinese Think Tank Warns Of ‘Potential Financial Panic’

As trade tensions continue to skyrocket and markets around the globe are affected, a Chinese government-backed think tank had a memo leaked warning of potential financial panic. China, the world’s second-largest economy, sees the rising tensions as a cause for concern.

Political elitists don’t care about the effects of their policies on the masses, as long as those masses continue to comply with the demands of the rulers. And now that’s evident by a Chinese think tank leaked memo warning of the potential for financial panic of the peasants they rule over. The warning is that leveraged purchases of shares have reached levels last seen in 2015 when a market crash erased $5 trillion of value. “We failed to clean up the leveraged funds after the 2015 market rout; they have staged a comeback in a new guise,” NIFD said.

Jun 27 09:03

China Just Blew The US Navy’s Electromagnetic Railgun Out Of The Water

While the United States spent years dithering over the future of its much-hyped electromagnetic railgun project, China ate its lunch. The Chinese navy plans to field its own secretive version of the electromagnetic railgun on naval vessels as early as 2025, according to a U.S. intelligence assessment first reported by CNBC.

China’s interpretation of the long-theoretical supergun, which utilizes a massive amount of power to create electromagnetic fields to accelerate projectiles to hypersonic velocities, is reportedly capable of “striking a target 124 miles away at speeds of up to 1.6 miles per second,” according to CNBC — fast enough to strike Philadelphia from New York in just under a minute.

If the U.S. intelligence assessment is accurate, this is a major strategic coup for the Chinese.

Jun 26 11:38

China Blocks HBO After John Oliver Compares Xi To Pooh

?China has blocked HBO after host John Oliver devoted a considerable amount of time criticizing President Xi Jinping and China's notorious crackdowns on dissent, at a time when Xi is trying to rebrand himself.

In addition to calling out China over human rights violations and various forms of propaganda, Oliver pointed out that Xi is very sensitive Winnie the Pooh comparisons, which Xi has censored due to Chinese social media users using Pooh memes to mock him over the removal of presidential term limits.

Jun 26 11:35

Peter Schiff: ‘The US Dollar Will Crash And Burn’ Because Of Trade War With China

According to investor Peter Schiff, the dollar will only depreciate in the ongoing trade war with China. Schiff claims the notion of a “dollar shortage” because of the tariffs on Chinese goods is “complete nonsense.”

“The thinking is – at least when it comes to trade – is that the dollar is going to benefit from a trade war, which I think is wrong. I think it’s just as wrongheaded as the concept that the dollar is going to benefit from larger budget deficits,” Schiff said, according to Seeking Alpha.

Jun 25 14:53

"No More Turning The Other Cheek": Chinese President Vows He'll Strike Back At The U.S.

Update: The Dow has extended its losses after Xi's threats and is now down 450 points as VIX spikes above 19...

Jun 25 13:22

Things Just Went Nuclear In Our Trade War With China, And A Giant Shockwave Is About To Hit The U.S. Economy

It is difficult to find the words to describe just how serious America’s trade war with China is becoming. As you will see below, the two largest economies on the entire planet are on a self-destructive course that almost seems irreversible at this point. The only way that this trade war is going to come to a rapid conclusion is if one side is willing to totally submit and accept an extremely bitter and humiliating defeat on the global stage, and that is not likely to happen. So in the short-term, and probably beyond that, we are going to experience a tremendous amount of economic pain. In fact, if one wanted to create a recipe for economic disaster, it would be hard to beat having the Federal Reserve dramatically raise interest rates at the exact same time that the U.S. government is starting trade wars with all of the other major economic powers simultaneously. Unless something drastically changes in the very near future, there is no way that the U.S.

Jun 25 09:58

US Futures Slump As Trump Drops New Bomb In Trade War; China Continues To "Weaponize" Yuan

While most analysis has been focused on the non-tit-for-tat trade tariff responses to Trump's $450 billion tariff threats against China, it is the Trump administration that is preparing to fire the next salvo in the trade war, and as The FT notes, this move could have even greater long-term consequences for the economic relationship between the US and China than tariffs.

Jun 25 09:32

China taking over Cambodia by buying everything

Jun 25 08:41

China takes surveillance to new heights with flock of robotic Doves, but do they come in peace?

If you’ve ever looked up to the sky and enjoyed the sight of a bird gliding above, be warned: it could be a Chinese drone monitoring your every move.

The idea might seem far fetched, but robotic birds are very much a reality, and China has been using them to surveil people across the country.

Sources told the South China Morning Post that more than 30 military and government agencies have deployed the birdlike drones and related devices in at least five provinces in recent years.

One part of the country that has seen the new technology used extensively is the Xinjiang Uygur autonomous region in China’s far west. The vast area, which borders Mongolia, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Afghanistan, Pakistan and India, is home to a large Muslim population and has long been viewed by Beijing as a hotbed for separatism. As a result, the region and its people have been subjected to heavy surveillance from the central government.

Jun 25 08:04

Is another Chinese space station about to plunge back to Earth? Nation’s Tiangong-2 craft drops 60 miles to orbit strangely close to our planet, and the government won't reveal why

Three months after Tiangong-1 made a fiery re-entry into our atmosphere, it's sister craft, Tiangong-2, looks like it's about to do the same.

But unlike Tiangong-1, Tiangong-2 could have a more controlled descent.

The spacecraft was observed plummeting around 60 miles (95 km) toward the surface of the planet.

It has since returned to its normal orbital height, sparking speculation that China may be preparing to decommission the vessel in the near future.

Jun 25 07:19

Beijing signals yuan devaluation to protect its exports from Trump’s tariffs

Chinese authorities have reportedly deployed the country’s central bank to resist intense trade pressure from Washington as nearly 85 percent of China’s sales to the US were hit with export tariffs amid an escalating trade war.

The People's Bank of China has announced first steps towards easing monetary policy, pledging to boost demand for the national currency. The regulator said it would cut the amount of cash reserves for some banks by 0.5 basis points and unleash some 700 billion yuan ($108 billion) of liquidity to accelerate the pace of debt-for-equity swaps and support smaller companies.

The measure, which takes effect July 5, is expected to weaken the national currency and consequently make Chinese goods taxed by the US cheaper.

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