China just blinked.
No shots have been fired. This is a war of words and policy.
President Donald Trump has put economic pressure on China like no other administration has done. Their lying, cheating and stealing has begun to have consequences. Their decision to devalue their currency is a move directly linked to the pressure they are feeling.
The battle isn’t over, but if the Chinese are waiting for Trump to fold they are making a mistake. Their best hope at this point is to hold on and pray that by some strange twist of fate, Trump loses in 2020. That is a bet they will lose. In the meantime, they are learning that Trump is a tough negotiator.
China is intent on dominating the globe. Economically and militarily. Until Trump, there was little if any resistance to their tactics. The devaluing on Chinese currency is their response to the trade war with the US.
The short term impact on American consumers may produce some pain, but in the long term, Trump policy toward China will produce great benefits. For the record, China and the US had a detailed agreement earlier this year. China backed out of it, in a move to test the resolve of President Trump.
There will be plenty of noise from anti-Trumpers and fear mongers, but he will stand firm. My expectation is that the Chinese will come to the table, if even after the 2020 elections.
This is a war we will win.
*** Gordon Howie *** is an author and CEO of Life and Liberty Media
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