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18 August 2019

China Stands Tall in the Trade War!

by Frank Li
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Hot off press: The Trump administration delays a portion of planned China tariffs until December. What does that mean? President Trump blinked in the trade war against China, and will blink more in the coming months!

In other words, China is standing tall!

In this post, I will provide a piece of strong evidence to demonstrate it, followed by an in-depth discussion.

1. The writing is on the wall!

The picture below is from the last trade talk between the U.S. and China. Can you read the writing on the wall?



2. What's on the wall?

It's a poem by Zhang Yanghao (1270 - 1329) from China's Yuan Dynasty. The image below is the translation from the artistic writing on the wall to plain modern Chinese.


The image below is my English translation.


Quiz: What is the mountain - China? What is the cloud - the U.S. and the trade war?

Three simple questions and answers:
Was it a coincident for the poem to appear on the wall? No, of course not!
How many Americans in the room could possibly read the wall? None, most likely!
Did the Chinese have a more profound message to the world via this picture? Yes, most likely - cultural depth, sophistication, and superiority!

3. "The Art of The Deal" vs. "The Art of War"

China's depth, sophistication, and superiority, cultural or otherwise, in the trade war can be simply highlighted by the image below.


A trade war is war, and must thus be dealt with as such!

China has been guided with The Art of War, while President Trump has been guided with The Art of the Deal - totally inadequate!


With that overall understanding, read my publications on the trade war, in sequence, as follows:

Bottom line: The U.S. may win a few battles initially, but China will win the war ultimately!

4. Discussion

One key requirement in winning a war, trade or otherwise, or even a deal for that matter, is to understand your opponent as well as yourself. Unfortunately for America, that's not the case in this trade war: Few Americans, including President Trump, truly understand China, or even America!

4.1 What is China?

China is arguably the greatest country in human history. Two facts:
China has the longest continuous civilization in human history.
Throughout human history, great civilizations have come and gone, with one major exception: China - come, almost gone, and come again.


For the significance of China's comeback, read: History 2.0.

4.2 What is America?

America is deeply in trouble. "We the People" simply do not know what to do, other than periodically casting our vote of "no confidence" to elect someone very different to be the President - first Barack Obama, then Donald Trump. Unfortunately, neither has worked out!

What's really wrong with America?



More profoundly, three informative readings:

4.3 Governance

Governance is hard.


China has spent at least the past 2,000 years on it, with only limited success. For more, read: Governance in China: Past, Present, and Future.

In contrast, the U.S. claims to be a totally exceptional country, featuring, among other things, two "new" notions: liberty and self-governing. Both of them actually predate the notion of a nation-state formed more than 5,000 years ago. Because of that, America may be behind China in governance by 2,000 years! For more, read: Governance in America.

The image below offers one big example of America's cluelessness about itself and why it is a laughing stock abroad.


Bottom line: It's totally stupid for America to blindly have faith in itself (e.g. democracy), while dismissing China as just a socialist, or even communist, country!

5. More discussion

With an improved understanding of the U.S. and China, as explained above, it's easier to see that there is no way for the U.S. to possibly win the trade war against China. Two main reasons:
China's system (i.e. capitalism + autocracy), with many endemic problems of its own, is actually slightly better than America's (i.e. capitalism + democracy).
Know your opponent! The Chinese know a lot more about America than the other around. For example, how many Americans can speak Chinese as well as many Chinese can speak English? Furthermore, how many so-called "China experts" in the America can possibly read and understand the poem on the wall highlighted above?

President Trump is a big problem for America, not a solution! For example, he has proven to be hugely ill prepared to play in the major league (President Trump's Major League Score: 0:4), totally inadequate in the world of Three New Kingdoms.


Two main reasons:
The American Presidency is not an entry-level job for public service.
He has become yet another victim of our failing political system, thanks to getting re-elected ad nauseam. For more, read: Trump 2016 vs. Trump 2020.


Two net results:
Now, add Larry Kudlow to the list of liars, thanks to his most recent outrageous lie: Larry Kudlow: The Chinese economy is crumbling!

In short, on the trade war, everything out of the mouth of an official around President Trump (e.g. Peter Navarro and Larry Kudlow) is a lie!

Naked truth: President Trump's top priority is to get himself re-elected in 2020 (or he may even end up in jail). Everybody around him, including the Fed chairman, must serve for this priority, or you are out! Two recent examples:

More broadly, two informative readings:


America, reform our failing political system, as I have suggested (American Democracy - Why is it failing & how to fix it?), or become a fiddle, second to China!


6. Closing

China is standing tall in the trade war, and will become even taller after the war!

Now, please sit back and enjoy the short video below:
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