This Is China’s Real Problem and Trump’s Real Strength

Xi Jinping, the head of the Chinese Communist Party, has a difficulty, and the solution is — MORE COWBELL! Except for the underlying truth of my silly Saturday Night Live joke, I’m kidding, of training. The answer to China’s financial issues has always been the same since Deng Xiaoping first became president in the 1980s: MORE EXPORTS. &nbsp,

Imports are about to reach a halt, though. &nbsp,

China urgently needs to leave what economists refer to as the” Middle Income Snare,” without getting too complex. A Third World ( or even Second World ) economy comes this close to transitioning from poverty to earning a middle-class income, and then joining the wealthy countries of the world.

South Korea escaped. Israel ran away. Taiwan and Singapore did the same. All four were previously, or nearly so, dust bad. All people are now among the highest workers in the world. Argentina, one of the richest nations in the world a century ago, has since fallen into the middle of the pack due to a terrible mix of political corruption and economic populism. Although Javier Milei is working ferociously to correct everything, I digress.

These nations escaped in two ways. The first was accomplished by exporting well-made products. The next was a consumer-based business that resembled theirs. China struggles with that next move.

China is subject to a lot of challenges because it is currently at the top of the middle-income group without really advancing much. Those headwinds include a stalled productivity growth, a real estate problems, a customer assurance imbalance, and more. &nbsp,

Therefore, Xi turned to the” MORE COWBELL” to create a political-economic culture that was flexible enough to move to a more consumer-based business. alternative once more. China is today releasing state-subsidized manufactured products at an unheard rate. Before any resistance builds up, the goal, in my opinion, is to completely sabotage the rest of the country’s developing. &nbsp,

Consider this:

This is from @Brookings Inst, not from @POTUS or MAGA.
CCP is flooded with discounted items on global markets. This is how Xi battles for his or her life.
@seanmdav @andrewrsorkin @nedryun @instapundit @ImKingGinger… https ://t.co/t5yhe8p95n— Mark Simon ( @MarkSimonHK) April 14, 2025

The phrase you’re looking for is “unsustainable.”

While I’m at best cautiously optimistic about the value of tariffs in restoring National production, which would likely benefit from significant deregulation and tax breaks. However, tariffs are a crucial tool for dealing with a adversary like Communist China. &nbsp,

It is indicated on the map. In that enormous red range, Xi has everything necessary to maintain State authority. &nbsp,

The problem with it is that China has all the resources it needs, especially in executive, to get out of the Middle Income Trap. All the necessary tools, but one: the political and economic stability needed to enable the Chinese client and break the Middle Income Capture. &nbsp,

However, Chinese production is a 600-pound monkey that wants to devastate smaller economy. In areas like Vietnam and Thailand, there are countless studies of just that happening. Enter the various 600-pound monkey, the U.S. consumer, though. China’s trade potential is significantly diminished if the government’s business negotiations bring the rest of the world to agreement with caging the monkey. &nbsp,

Trump’s tariffs serve as a buffer for Xi’s exports, which will help to prop up his balloon business. &nbsp,

Recommended readings include The Guardian Is Coming After My Pitbulls and This Means War.

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