U.S. Relations With China Were Just Destroyed, And Nothing Will Ever Be The Same Again
U.S. Relations With China Were Just Destroyed, And Nothing Will Ever Be The Same Again by Michael Snyder for The Economic Collapse Blog
Our relationship with China just went from bad to worse, and most Americans don’t even realize that we just witnessed one of the most critical foreign policy decisions of this century. The U.S. Senate just unanimously passed the “Hong Kong Human Rights and Democracy Act of 2019”, and the Chinese are absolutely seething with anger. Violent protests have been rocking Hong Kong for months, and the Chinese have repeatedly accused the United States of being behind the protests. Whether that is true or not, the U.S. Senate has openly sided with the protesters by passing this bill, and there is no turning back now.
The protesters in Hong Kong have been waving American flags, singing our national anthem and they have made it exceedingly clear that they want independence from China. And all of us should certainly be able to understand why they would want that, because China is a deeply tyrannical regime. But to the Chinese government, this move by the U.S. Senate is essentially an assault on China itself. They are going to argue that the U.S. is inciting a revolution in Hong Kong, and after what the Senate has just done it will be very difficult to claim that is not true.
The Chinese take matters of internal security very seriously, and the status of Hong Kong is one of those issues that they are super sensitive about. China will never, ever compromise when it comes to Hong Kong, and if the U.S. keeps pushing this issue it could literally take us to the brink of a military conflict.
And you can forget about a comprehensive trade agreement ever happening. Even if a Democrat is elected in 2020, that Democrat is going to back what the Senate just did. That is why it was such a major deal that this bill passed by unanimous consent. It sent a message to the Chinese that Republicans and Democrats are united on this issue and that the next election is not going to change anything.
And the trade deal that President Trump was trying to put together was already on exceedingly shaky ground. “Phase one” was extremely limited, nothing was ever put in writing, and nothing was ever signed. And in recent days it became quite clear that both sides couldn’t even agree about what “phase one” was supposed to cover…
A spokesperson for China’s Commerce Ministry said earlier this month that both countries had agreed to cancel some existing tariffs simultaneously. Trump later said that he had not agreed to scrap the tariffs, lowering hopes for a deal.
“They’d like to have a rollback. I haven’t agreed to anything,” the president said.
On Tuesday, Trump was visibly frustrated by how things are going with China, and he publicly warned the Chinese that he could soon “raise the tariffs even higher”…
President Donald Trump threatened higher tariffs on Chinese goods if that country does not make a deal on trade.
The comments came during a meeting with the president’s Cabinet on Tuesday. The U.S. and China, the world’s two largest economies, have been locked in an apparent stalemate in trade negotiations that have lasted nearly two years.
“If we don’t make a deal with China, I’ll just raise the tariffs even higher,” Trump said in the meeting.
Unfortunately, raising tariffs isn’t going to fix anything at this point.
In fact, Trump can raise tariffs until the cows come home but it isn’t going to cause the Chinese to budge.
That is because on Tuesday evening everything changed.