Communist China Going Rogue Will Hurt Them a Whole Lot More Than Us

The long and the short of the U.S.-Communist China fisticuffs is that no trade barriers are coming down, and no new trade openings are popping up.China has gone rogue by putting export controls for rare earths and other commodities on the entire world. And, to be sure, America has got to punch back.Treasury Secretary Scott Bessent is right, China is a command-and-control economy, and our allies will neither be commanded nor controlled.Rare earth deals were struck in various meetings at London, Geneva, Madrid, but China is breaking the deals.Just like they broke the deal for the Phase One trade agreement that was signed in January 2020. They go rogue.Maybe the commerce ministry is going rogue. Maybe Xi Jinping is going rogue. Who knows.Yet China going rogue will hurt them more than it hurts us. It’s their economy that’s in recession shape, and we are the great consumer power that they desperately need.Now China is surely losing friends if they had any to begin with. Australia’s furious at China, Japan, the European Union, and the United States.President Trump will slap a huge tariff on November 1, unless China relents.America must punch back.I still think it could be that China is throwing a temper tantrum because they’ve been so badly beaten in the Middle East with Mr. Trump’s historic peace deal and the destruction of China-backed Iran.Another defeat may be looming as Mr. Trump focuses on ending the Russia-Ukraine war. China’s backing the wrong horse there too.Meanwhile, the Senate wants to slap a 500 percent tariff on China for the purchase of Russian oil.A tariff of 100 percent will do fine. Once again, China’s backing the wrong horse.By the way, with a 50 percent tariff, India has stopped buying Russian oil.Chinese trade petulance is bigger than rare earths. They and their Brics allies have been buying enormous quantities of gold over the past ten or more years, while they have reduced their U.S. Treasury dollar bond holdings by nearly 50 percent.What are they doing? Well, they’re working overtime to diminish the world reserve currency status of the American dollar. So, here’s Mr. Trump’s response to that one:“I like the dollar. I’m very strong on the dollar. And anybody who wants to deal in dollars, they have an advantage over people that aren’t. But for the most part, we’re keeping it that way.” Mr. Trump added, regarding Brics: “I told anybody that wants to be in Brics — that’s fine. But we’re going to put tariffs on your nation. Everybody dropped out. They’re all dropping out of Brics. Brics was an attack on the dollar.”Pure and simple. Mr. Trump is right. Brics and China are attacking the dollar. More rogue behavior.So, the wisest course right now would be a meeting at the APEC conference in South Korea between Mr. Xi and Mr. Trump.Perhaps then we can get back to lowering trade barriers and promoting prosperity.Yet if China insists on playing the petulant spoiled brat as they keep losing ground in world politics and influence, then so be it.Count on Mr. Trump to not stand for China’s bad behavior. They’re going after the wrong guy.From Mr. Kudlow’s broadcast on Fox Business Network.

Communist China Going Rogue Will Hurt Them a Whole Lot More Than Us

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