When President Trump began confronting China on trade practices, there was always a likely totalitarian Chinese response. The inevitable response when confronting the duplicitous dragon is always an attack; it’s the only way Beijing knows how to respond.

Last week Beijing threatened to take action against any corporation who would be perceived as working against the interests of the state.  This week communist Beijing begins doing exactly that:

(SCMP) China’s antitrust regulator slapped a US$23.6 million fine on Ford Motor Company’s Chinese venture for restricting sales prices in its hometown, taking the second such action against US carmakers in three years as trade tensions deteriorated between the world’s two largest economies.

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All your interests are belong to us…. There was previous discussion of how Beijing would respond if/when their economic interests were challenged. In essence, the prediction was that China would drop the panda mask and revert back to their oppressive totalitarian tendencies.

It is an interesting dynamic because the more the communist state moves to punish and control western business interests, the less likely any western investment flows into China. It’s a simple question: Why would anyone want to engage a business relationship inside a totalitarian system that could move at any moment to control your business?

(South China Post) China will publish a list of “unreliable” foreign entities deemed to have damaged the interests of Chinese firms – a move set to ratchet up tensions in its escalating conflict with Washington, after the US government blacklisted Chinese telecoms giant Huawei.
The Ministry of Commerce said on Friday that it would blacklist foreign businesses or individuals that violated market rules and contractual obligations, or took “discriminatory measures” to hurt Chinese business rights and interests, as well as national security and interests.

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Vice-President Mike Pence traveled to Canada today as an emissary of the Trump administration to support Canadian passage of the USMCA trade agreement.
According to Reuters media reports the vice-president was focused on the importance of a strong North American economic alliance, and how a united tri-lateral agreement can form a geopolitical hedge against influence from communist China and socialist ideologies in Cuba and Venezuela. Justin from Canada expressed his perspectives over diminished women’s rights, U.S. abortion laws, the important contributions of a transgender workforce, climate change and the NBA championship playoffs…. Yes, really:

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Meanwhile in Mexico: “The Senate, controlled by Lopez Obrador’s National Regeneration Movement (MORENA) and its allies, should approve the United States-Mexico-Canada Agreement (USMCA) once it has passed through congressional committee, the president said.” (link)
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Steve Bannon is in Paris, France as the nationalist wins in the EU parliamentary election results fill the headlines.  Additionally, Bannon gives his opinion on the strategic importance of President Trump’s recent state visit to Japan.

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“Economic security is national security“… I would emphasize the strategy within the multi-layered geopolitical economic reset is all President Trump.  The restoration of a sovereign U.S. economy, and the increases in Main Street American wealth, is Donald Trump’s primary agenda item.  The President listens to advisers on a variety of economic and trade matters, but the America-First policy strategy is all his.
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A fascinating press conference from the standpoint of President Trump and Prime Minister Shinzo Abe’s united position toward the dynamic of North Korea.
It is obvious that Trump and Abe have a strategy for the next step in engagement with Chairman Kim Jong-un.  Notice how PM Abe gives prepared remarks specifically about direct talks, face-to-face talks, with Chairman Kim, facilitated by President Trump opening the door:

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Obviously President Trump trusts Prime Minister Abe as a strategic ally; and a big component of this state visit is the two leaders coordinating regional security issues. China confronted/contained, and simultaneously both partners working on the hostage rescue of Chairman Kim is incredibly consequential.
The strategic value of this state visit is much more than surface appearances.
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As once noted by CIA Director Mike Pompeo, U.S. President Donald Trump often does geopolitical messaging through twitter that is missed by the U.S. media but hits the target as subtle as a brick through a window. President Trump’s latest tweet on North Korea is a prime example.
If you view this tweet with the perspective that Chairman Kim Jong-un is essentially a hostage of Beijing masters, controlling the upper tier of his military, things make a lot more sense:

…And given the nature of the public comments by President Trump and Prime Minister Abe (transcript pending) during the current state visit; it would appear that Trump has enlisted Abe in hostage rescue efforts.
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President Trump is holding a White House event to support Farmers and Ranchers and announce a transitionary aid package to help during the restructuring of the global supply chain and a reset in U.S-China engagement. Anticipated start time 3:15pm EDT.
Quite a remarkable presser.
UPDATE: Video Added

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The headlines are once again examples of an ideological media. “Stunning”, “surprising”, “unexpected”, etc.  However, far from the headline ideology; in a result that is splendidly falling into place for a much more consequential geopolitical landscape; things are going swimmingly…

Reuters Headline: “India’s Modi stuns opposition with huge election win”

NEW DELHI/AYODHYA (Reuters) – Indian Prime Minister Narendra Modi scored a dramatic election victory on Thursday, putting his Hindu nationalist party on course to increase its majority on a mandate of business-friendly policies and a tough stand on national security.
His re-election reinforces a global trend of right-wing populists sweeping to victory, from the United States to Brazil and Italy, often after adopting harsh positions on protectionism, immigration and defense.

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The White House provided a background presser for information about President Trump and First Lady Melania Trump’s upcoming state visit to Japan.  [Transcript below] There are some interesting aspects to the itinerary as outlined; however, first, it’s important to emphasize the context.
As CTH shared earlier: At the highest levels of finance and business; in a process within both private industry and the geopolitical realm of government; a key aspect to every long-term strategic reset is the formation of an alliance.  Every successful titan of industry who has structurally changed history has influenced an alliance toward the effort.

I strongly suspect, in anticipation of the China confrontation; and considering the scale of the consequences therein; President Trump selected Japanese Prime Minister Shinzo Abe as the center of an Indo-Pacific alliance (several years ago).  With the knowledge of USTR Lighthizer heading to Japan with an advance trade team…. now consider:

Via Teleconference – 2:31 P.M. EDT – PRESS OFFICER: Good afternoon, everybody. I’m happy you all could join. We have with us today [senior administration official]. He’ll be providing some brief remarks about the President’s upcoming trip to Japan and a few Q&A afterwards. This will be on background and you can attribute what he says to a senior administration official.

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In a clear signal toward the trade conflict with the United States, Chinese Chairman Xi Jinping is preparing his nation for a protracted trade conflict. Chinese state-run media have been deploying propaganda to shift public opinion toward the U.S. as a direct threat, and the latest developments by Xi showcase that agenda.

(South China Post) Chinese President Xi Jinping has called for the nation to embark on a new Long March and “start all over again”, in the most dramatic sign to date that Beijing has given up hope of reaching a trade deal with the United States in the near term.
Xi is in Jiangxi province for his first domestic tour since the escalation of the trade war two weeks ago. Jiangxi is where China’s defeated Red Army started its fabled Long March in 1934, and Xi’s choice of destination is being viewed as an effort to invoke a spirit of endurance and to rally public spirit amid rising tensions with Washington.

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