Posted on 09/20/2018 9:15:04 AM PDT by SeekAndFind
China used to be communist but it's not anymore. It's fascist. It has an authoritarian government like commies but unlike them it allows the illusion of private ownership of business, illusory because it is under total control of the state. But the illusion does produce some powerful rich people. And they all stand to lose by the state stonewalling Trump on trade.
Bottom line, China decided that they wanted to make money on the world markets and somewhat opened up their system. Now Trump is sticking a wedge into that crack and smacking it with a sledge hammer. Unless some democrat or globalist RINO takes over carrying a bucket of mortar to fill the crack it will probably split wide open.
Unless, of course, they cave. The game now is if they can last long enough for Trump to be replaced by a more subservient leader who will bow to Chinese needs or if the government will come under so much internal pressure that they are forced to meet Trump's demands.
The Chinese government is still communist. Make no mistake about it.
The party has maintained a political monopoly since its founding, despite the effects of China’s rapid economic growth, increasing social unrest, and political destabilization that challenge the country’s rise as a global power. A spate of political and corruption scandals has also exposed deep power struggles inside the infamously opaque organization. Nevertheless, through the course of Xi’s first term in power, he has taken drastic action to not only consolidate his hold on power via party levers, but experts say he has also positioned himself to become the most influential Chinese leader since Mao Zedong.
Inspired by the Russian Revolution, the CCP was founded in 1921 on the principles of Marxism-Leninism. Tensions between the Communist party and the nationalist Kuomintang, its primary rival, erupted into a civil war from which the Communists emerged victorious in 1949. Despite China’s market reforms in the late 1970s, the modern Chinese state remains a Leninist system, like those of Cuba, North Korea, and Laos. The party relies on three pillars: control of personnel, propaganda, and the People’s Liberation Army. Around 70 percent of its members are men, and farmers, herdsmen, and fishermen make up roughly 30 percent of its membership.
The CCP convenes its National Party Congress (NPC) every five years to set major policies and choose the Central Committee, which comprises around 370 members and alternates including ministers, senior regulatory officials, provincial leaders, and military officers. The Central Committee acts as a sort of board of directors for the CCP, and its mandate is to select the Politburo, which has twenty-five members.
In turn, the Politburo elects through backroom negotiations the Standing Committee, which functions as the epicenter of the CCP’s power and leadership. The Politburo Standing Committee currently consists of seven members, but membership has ranged from five to nine people. Xi, who took over from Hu Jintao in 2012, sits atop the system as general secretary; and as president and head of the military, he exerts enormous influence in setting government policy. The premier, Li Keqiang, heads the State Council, China’s equivalent of a cabinet. Since Xi’s transition to power, he has amassed more power than his predecessors and his unilateral decision-making has undermined his party’s prior commitment to consensus-based rule.
And communist countries don't have rich people (well, rich people who aren't in the government anyway, they are all rich as Midas but they're the only ones). Nope, a favored group of people who own,run and profit from "private" business but only with express approval and under total control of the government is fascist, not communist.
“Alibaba Founder Jack Ma Predicts the US – China Trade War Could Last 20 years”
This “trade war” will be over in 3 months or so. Trump will give the Reds a face-saving way to give in, resulting in a 150 billion or so annual reduction in our trade deficit and intellectual property protection.
“I recommend that Walmart and other major purveyors of Chinese product URGENTLY seek alternative suppliers. How’s this for a possibility ... seek out domestic American businesses to supply products.”
China is a communist country. The fact that it allows a modified form of capitalism to exist does not change how the country is run. The Communist Party is small compared to the general population, i.e., 90 million compared to 1.3 billion. But it controls every facet of life, including the economy. The Chinese communists are allowing the economy to be more capitalist as a way to fund their total control over the country. The Chinese economy faces some real challenges even without Trump's "trade war."
"Overall growth is slowing – to around 6 to 7% pa – and there is concern that China could be headed for a Japanese style period of stagnation and/or a crash rather than orderly rebalancing."
"A key uncertainty is whether the build-up of debt incurred in order to finance the boom in investment will lead to a financial crisis. Investment in property infrastructure and heavy industry was financed by borrowing, much of it incurred to ‘shadow banks’ credit institutions outside of mainstream banking. Chinese aggregate debt had reached 255% of GDP by mid-2016, up from 141% in 2008 (and as against 188% in emerging markets as a whole). Some estimates are much higher (around 300%). The fear now is that, as the economy slows, debts can no longer be serviced and there will be defaults which, could, as after 2008 crisis in Western economies, drag down major lending institutions. So far, state intervention to support weak institutions and continued growth stimulus have headed off disaster. But the price has been the postponement of necessary reform. We simply do not know if there will be a soft or hard landing."
Yep. The Chinese economy is a "house of cards" and is teetering on the brink of collapse. They really cannot afford to have an extended trade war with their biggest customer.
I cannot remember where I either read or watched but a conservative economist said the rest of the World dislikes the USA because we are basically the only country that can actually sustain itself within its own borders, so they cannot really bring us to our knees because we can live on our own.
When Sam Walton died the MBAs that took over operations immediately started importing Chinese garbage. It is a shame that to many very wealthy people there is no limit to how much money they need to make. With no moral values the Free Market becomes Crony Capitalism and wealth just becomes a game where the bigger the number in your bank account makes you a better person.
20 Yrs ? Bout how long they’ve been sucking our blood I’d say..
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