An interesting article in the South China Morning Post outlines how Chinese companies producing everything from canned mandarin oranges, to mid and high-tier furniture, cannot sustain a business model without access to the U.S. market.
Their problem?…
In essence, when they established their decades-old business model the overwhelming majority of their manufacturing was/is contingent on U.S. buyers.
Right now those Chinese companies are praying the CCP central government keeps devaluing their currency, because U.S. purchasers, including wholesalers and intermediaries, have told those manufacturers they will not pay the import duties.
Apparently, U.S. corporate buyers are leveraging the pressure applied by President Trump – a remarkable dynamic.

Perhaps President Trump has to play the public pretend game to China’s panda mask presentations, but we do not.

The corporate U.S. media are pushing a hard narrative today surrounding claims by Chinese Vice-Premier Liu He and wanting to create “calm” to work in earnest toward a U.S-China trade deal.  However, those who follow the dynamic closely will remember Liu He’s role was changed back in July.  Today’s Panda announcement is pure cunning.
Everything China is doing is intended to make it harder for President Trump to be aggressive in the confrontation:

BEIJING (Reuters) – Chinese Vice Premier Liu He said on Monday that China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict, a state-backed newspaper reported.
Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

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It does not take a deep geopolitical weed-walker to see the background for inviting the African delegation to the Biarritz summit.  Here we see the the G7 working session group on ‘partnerships with Africa‘:

What we don’t see in this picture is the main reason for the meeting, the 800lb panda in the room. All of these non-G7 members and meeting participants have been previously exposed to the One-Belt One-Road influence of Chinese Chairman Xi Jinping.
Combine World Bank President David Malpass into the equation, a direct U.S. nomination by President Trump now in place; mix in the visibility of Australian Prime Minister Scott Morrison; and then recognize the sudden appearance of Sebastian Pinera from Chile and Prime Minister Narendra Modi from India; and the picture of a multi-continental meeting to discuss the potential downstream ramifications of President Trump confronting China becomes visible.
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An announcement from China on Saturday, pledging a full economic war against the United States, will likely not come as a surprise for most CTH readers.  However, it does serve as emphasis for our 2017 statement: “prepare your affairs accordingly“…

When we followed up a few months later with the warning:

“There is no upper limit to the level of economic pain Team U.S.A. (America First) is willing to inflict upon China. There is no ending perimeter of action too far for President Trump to travel. Trump will battle his adversary far beyond traditional horizons and will follow them in retreat if that’s what it takes to ensure the safety of the our economic nation.”

Those words were not written lightly.  We accept Trump’s history; we accept three decades of his expressed intent on these issues; and we also accept the historic and cultural position of China which takes us into this conflict.   From Beijing today:

China on Saturday said it would continue fighting the trade war with the US “until the end” after the two sides slapped further tariffs on each other’s goods.

The commerce ministry issued a statement calling on Washington not to “misjudge the situation and underestimate the determination of Chinese people” after US President Donald Trump announced new tariffs on Chinese imports. “The US should immediately stop its wrong action, or it will have to bear all consequences,” the statement said.

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The stakes are high at this G7 Summit in Biarritz France.  Against the rising tide of populist nationalism -pushing against the globalist/corporatist world order- perhaps these stakes are the highest in the modern political era.

(Where are the spouses?)

Italian President Giuseppe Conte’ is a lame duck summit participant having just quit his job due to economic and immigration backlash from his Italian population.  German Chancellor Angela Merkel has steered her export dependent economy into a recession; and has announced she won’t seek reelection while simultaneously putting the EU central bank into a 28 nation economic quagmire filled with unsustainable IOU’s….
French President Emmanuel Macron, the host for this year’s summit, has spent the better part of the last year trying to violently block the rising yellow vest populist movement, and he is desperate for any distraction away from his own economic reality.
Meanwhile EU President Donald Tusk is locked in an economic death match with British Prime Minister Boris Johnson over the terms of the U.K. Brexit from the union; while simultaneously dealing with a lack of tax receipts from the aforementioned banks of Germany and France…
The EU’s only North American ideological ally, Justin from Canada, is essentially useless. Trudeau has used his political self-identification to hurt his own citizens economically;  Canada is experiencing a continued loss in private-sector employment amid the malaise Justin coordinates; and his tenuous (at best) re-election is scheduled for October 21st…
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As President Trump departs the White House en route to the G7 meeting in France, White House Manufacturing and Trade Policy Advisor Peter Navarro appears on Fox Business for an interview to discuss the latest round of enhanced tariffs on China.

(White House) For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight.

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President Trump has announced the raising of tariffs on China effective Sept 1st and October 1st, 2019.  This is one arrow in a quiver filled with economic consequences:

• The preexisting 25 percent tariff on $250 billion in Chinese goods will increase to 30 percent effective October 1st, 2019.
• The pre-planned 10 percent tariff on $300 billion worth of Chinese goods will increase to 15 percent, effective September 1st, 2019.

This targeted tariff approach is only a small sample of the economic action that is available to President Trump.  There are a host of tools and targeted economic weapons available to President Trump that are far more damaging to Beijing.
This announcement also sends a clear message to the members of the G7 as they prepare for their meetings in France.
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Within the dynamic of the U.S -vs- China trade confrontation, CTH has long noted the Wall Street (globalist) multinationals would always go bananas.  There are trillions at stake and President Trump is confronting three decades of financial influence from Wall Street’s multinational corporate lobbyists.
To the angst of Wall Street, POTUS Trump tweets the dynamic.
President Trump will not back down from his position; the U.S. holds all of the leverage and the issue must be addressed.  President Trump has waited three decades for this moment.  Main Street U.S.A has waited for this moment.  This President and his team are entirely prepared for this battle…. Now we fight!

We are finally confronting the geopolitical Red Dragon, China!
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides nefarious motives behind the panda mask.
Additionally, while carrying out the objectives of the confrontation, Secretary Mnuchin, Secretary Ross, Ambassador Lighthizer and adviser Peter Navarro are well aware of Beijing’s duplicitous panda mask; POTUS Trump will never let them forget about it.
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Well, they cannot later claim they were not warned.  In a series of stunning tweets today, President Trump directly tells U.S. companies manufacturing goods in China, they need to make rapid plans for exit.

Earlier today China’s commerce ministry said it will impose additional tariffs on thousands of U.S. products, including agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on Sept. 1 and others on Dec. 15.
The Wall Street multinationals are exposed to significant losses because of their investments in China.  White House trade and manufacturing policy advisor Peter Navarro appeared on Fox Business with Maria Bartiromo to discuss the dynamic.