Many nations commercial relationships with China are so extensive that China can throw its weight around. From Tyler Durden at zerohedge.com:
It all started in late February when we reported that a political row had erupted between China and Australia, with Beijing cracking down on imports of coal from Australia, cutting off the country’s miners from their biggest export market and threatening the island nation’s economy at a time when it and its fellow “Five Eyes” members who have sided with the US by blocking or banning Huawei’s 5G network technology.
In the weeks that followed, while Beijing disputed such a draconian export crackdown, China was overtly targeting Australian coal imports with increased restrictions – what Beijing claims were quality checks – that delayed their passage through northern ports. Given Australia has the highest level of income dependency on China of any developed nation as 30.6% of all Australian export income came from China last year, equivalent to US$87 billion (twice the trade volume with Japan, Australia’s next biggest trading partner), and Australia’s coal industry is deeply dependent on its exports to China, which account for 3.7% of Australia’s GDP, this prompted much speculation that Beijing is punishing coal companies as retribution for political acts by Canberra, one of Washington’s closest allies. “The last time Australia was so dependent on one country for its income was in the 1950s when it was a client state of Britain,” Sydney Morning Herald’s international editor, Peter Hartcher Hartcher said in March, according to the SCMP.
The EU and the neoliberal globalist project cannot allow Brexit to go through in any form but complete bastardization. From Tom Luongo at tomluongo.me:
When the Soviet Union fell in 1991 Marxism was dealt a near fatal blow. The crown jewel of communism was no more and descended into the worst kind of lawlessness.
Francis Fukiyama famously declared the End of History and the U.S. went on a ‘to the victors go the spoils’ looting of 1990’s Russia that boggles the imagination.
Marxists were left floundering. They were convinced the end of capitalism would occur and communism would win. Their identity was shattered on the shores of collectivism’s inherent inconsistencies.
It’s lack of basic understanding of why man acts and what he hopes to achieve when he acts that dooms all forms of collectivism to eventual failure.
The cries went up among the committed Marxists to then blame the U.S.S.R. that it wasn’t real communism. And their argument shifted to European Democratic Socialism as the superior implementation.
For the past twenty-eight years we’ve been inundated with this by leftists who refuse to give up on the dream. It’s still just warmed-over Marxism but whatever.
US moves against Huawei couldn’t be because the Chinese company is the world leader in 5G technology. From Tyler Durden at zerohedge.com:
Regardless of whether Huawei represents a genuine national security threat to the US and its allies, there is another important reason why Washington might want to persecute Huawei: Namely, because US telecoms companies, fearful of ceding even more ground to global market leader, asked them to, as John Tamney explained in an essay published by the American Institute for Economic Research.
Huawei, a wildly highly successful telecom company can’t place its goods on U.S. shelves because it is viewed as a national security threat. The laughable argument offered up by members of the political class to defend the indefensible is that Huawei’s close ties to the Chinese government mean that American use of its phones and equipment imperil us because we could be spied upon. Oh dear…
The real threat here is U.S. telecoms that are close enough to our federal government such that they can convince federal officials to pursue always damaging protectionism. Luckily for U.S. smartphone makers (Apple sells 20% of its iPhones in China), the rules against our best and brightest in China aren’t so stringent.
The US’s confederated empire is slip-sliding away. From Tom Luongo at tomluongo.me:
With the U.S.’s attempt at regime change in Venezuela going nowhere fast it’s becoming increasingly obvious that major
vassals allies aren’t scared of the consequences of defying us.
India, in particular, has been quite clear in its opposition to Trump’s edicts on who they can and cannot trade with. And with Prime Minister Narendra Modi reeling from a corruption scandal it’s clear he isn’t going to give Trump an inch on important trade issues, especially with Modi in full re-election mode.
Not only has India defied the U.S. over buying Iranian oil and Russian S-400 missile defense systems but now they continue to flaunt U.S. sanctions on Venezuela upping its purchases from 400,000 barrels per day to more than 600,000.
The quantity of exports to India has jumped 66 per cent to 620,000 barrels a day and the boost is being driven by refiners like Reliance Industries Ltd and Nayara Energy Ltd, backed by Rosneft, Russia.
Overall though, Venezuela’s crude exports have taken a dip as the US has intensified the sanctions against the Latin American nation’s oil company.
The response from the U.S. was the nearly inconsequential removing India from the Generalized System of Preferences which created tariff-free trade on a number of products between the U.S. and India.
Like a lot of what Trump does, his trade war with China is going to amount to a lot of sound and fury signifying nothing. From Tom Luongo at tomluongo.me:
Over the weekend, fifteen minutes before U.S. equity futures markets opened, President Trump extended the trade talks between the U.S. and China.
No one should be shocked by this.
Because China isn’t the main problem. We are. Why? Keep reading.
Trump has rapidly become the Appeaser-in-Chief. Everyone on the other side of the negotiating table knows this. Sure, he’s put sanctions on Russia, Iran and every other small global player to show how tough he is.
But when it comes to anyone serious enough to hurt the U.S. economy? He folds every time.
India? Germany? Mexico? Canada?
His renegotiating NAFTA was the smallest kind of win. Effectively, he got Mexico to raise their minimum wage a little. Canadian dairy? Please, don’t make me laugh.
It’s all about getting re-elected, not about changing the dynamic.
The only folks he’s been tough on are the ones he can be — Russia and Iran. Thanks to years of antagonism, they have little important trade with the U.S. With Russia it is strategic metals – titanium, aluminum and uranium.
So, sanctioning them is easy.
The Eurocrats and British Remainers are dancing on the deck of the Titanic. From Tom Luongo at tomluongo.me:
This is the attitude of those opposed to it. Any real separation of the U.K. from the European Union would result in a catastrophe which knows no bounds.
They have ratcheted up Project Fear to the point now of saying there will be food shortages and permanent supply problems for fresh fruit if a hard Brexit occurs.
Things like this defy all reason. They are based on the stupidest interpretation of how humans react to changing situations. It is like saying the only potential suppliers for the U.K. of certain fruits and vegetables are those from the European Union.
Because people don’t respond to incentives and there aren’t other suppliers ready to take up the slack if the Eurocrats keep their panties in a twist over this.
Parliamentary Deck Chairs
And yet, after another major session of Parliament in which Remainers were supposed to scuttle the entire process we see Brexit moving steadily towards its obvious conclusion.
The six amendments which were on the table yesterday ranged from virtue signaling about not wanting a No-Deal Brexit to parliament wresting control of the law-making process from the Government, over-turning nearly 40 years of tradition.
Four of them, all of the terrible ones, failed.
Because what finally happened is that these corrupt and venal MP’s finally ran up against the reality that they hold what power they have at the pleasure of the people they represent.
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Tagged Brexit, EU, President Trump, Theresa May, Yellow Jacket protests