The Investors Podcast Interview On The US – China Trade War
I recently spoke with The Investors Podcast about the repercussions that the US – China Trade War could have on China, the United States and the rest of the world; and the risks that the trade war could soon become a Cold War or even a Hot War. Please find a link to that timely interview below.
Last week, tensions between the two countries increased sharply. In fact, future historians may identify last week as the point at which the US – China COLD WAR began.
During the course of only three days between October 4thand 6th:
- Commerce Secretary Wilbur Ross said in an interview that the recently completed US trade pact with Canada and Mexico contained a “poison pill” provision designed to prevent Canada and Mexico from entering a bilateral trade agreement with a “non-market economy” (read China); and that the US hoped to replicate the poison pill provision in future bilateral trade deals with Japan and the European Union.
- The Pentagon released a 146-page report stating that the United States was vulnerable due to its overreliance on other countries, and particularly China, for a wide range of materials. The report stated China’s “aggressive industrial polices” have already impacted some critical capabilities, including solar cells for military use, flat-panel aircraft displays and the processing of rare earth elements.
- Bloomberg published an important and widely read article entitled, “The Big Hack: How China Used a Tiny Chip to Infiltrate U.S. Companies”. It claimed the Chinese military had successfully orchestrated an operation that implanted tiny spyware microchips into motherboards that were sold to almost 30 U.S. companies, including Amazon and Apple.
- And, most importantly, in a major, 40-minute policy speech, Vice President Pence attacked China for its actions across a number of fronts from trade policy to repression of religious freedom within China to meddling with upcoming US mid-term elections. He said, “But our message to China’s rulers is this: This President will not back down”. And, “Our administration is going to continue to act decisively to protect America’s interest, American jobs, and American Security.”
A US – China Cold War would mark a turning point in history. Everyone needs to understand how they could be impacted by it. This podcast outlines what many of the consequences could be.
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