USA & China Trade War. Buckle up Buttercup! There is turbulence ahead!

It’s me, Johnnie Bosch,

As we watch the Communist Chinese government react to the latest in the trade dispute between us, it is evident they overplayed their cards are now back peddling and pointing fingers. Xi is now in internal crisis mode. He must save face, save the party and hold on to everything he can. Especially his Supreme Power.

Unwilling and unable to tell their people the truth, they now must create the ” Peoples War”  storyline to proclaim themselves as victims and not the violators that they actually are. When you’re a Communist leader, you can do these things! Just like shutting down Twitter and other social websites and accounts on people that may not agree with you. This is becoming much more than a trade war. This is going to get much tougher before it becomes better. Our relationship with China is changing quickly. I do not believe it will ever be the same.

Because the Chinese Communists have never been in this position, there are making bad decisions at the wrong time. This has not happened to them before. Because of this, they are making the situation worse, not better. They are so off balance and nervous that their only moves are to incite the Peoples War to invite National unity. They are playing the blame game and blaming the Americans for their problems. They have been tightening all their internal controls and limits on internal freedoms. The true colors of the Communist government are coming through loud and clear. They want their people to know that they are in control!

In the last 48 hours, they shut off Twitter and other social media accounts on those people they deem questionable in their eyes. They are starting to abuse Americans and American companies in China. All Americans and American ( as well as Canadians and Canadian) companies in China must be very careful from today forward. They will be targets across the country in various ways. My suggestion is if you do not need to go to China, then don’t. It will get much uglier before it becomes better. My other real concern is that the Communists may cross critical lines that they can not come back from. Should this happen, we are in a whole different place.

While the G 20 is a few weeks away, China may believe it is positioning itself to be in a stronger negotiating position with the US if and when XI and Trump meet. I believe they are putting themselves in a weaker and more vulnerable position. There is a chance they may not meet at all. If there is no deal to be done at G-20, they will not meet formally. 

 While there will be a deal done one of these days. My belief is that China will have lost so much momentum as well as trust from investors, trading partners, neighboring countries and the World community. There is a good possibility, that their goals to expand globally, will too constrict rather than expand over the next 10 years.

The time has come to begin the strategic shift in manufacturing hubs, supply chains, and supply routes. Over the past 60 years, the low-cost supply hubs in Asia have moved. It started in Japan in the early 60s. I remember as a kid, Made in Japan was a joke. It meant the item was cheap junk. Then in the early ’70s, they sent us Toyotas, Datsuns and the Sony Trinitron. Low-cost products and production had to move. It then moved to Korea, then Taiwan and now China. My next article will discuss this in detail. Where we are and where we need to go.