White House manufacturing policy advisor Peter Navarro has an interview today to discuss the enforcement mechanisms behind the U.S-China trade agreement.
One of the interesting points Navarro raises is how the intellectual property provisions align with the newly initiated Customs and Border Protection “operation megaflex” where thousands of packages from China are opened looking for counterfeit goods.
According to Navarro the operation has identified a counterfeit rate of ten percent; fake goods and contraband narcotics.  China prosecuting these identified companies becomes part of the compliance system to see if China is adhering to the agreement.

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Treasury Secretary Steven Mnuchin appeared on Fox News with Brett Baier for a more detailed discussion of the U.S-China ‘phase-one’ trade agreement.  Additionally, Secretary Mnuchin discussed the status of sanctions with Iran and his view on impeachment.

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…and Brett Baier is a human cabbage patch doll.
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White House National Economic Council Director Larry Kudlow appears on FOX Business for his first interview since the signing of the U.S.-China trade deal.  Mr. Kudlow is optimistic but also shares notes of caution for the compliance and enforcement aspects.

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In the background of the delegation it should be noted Chinese Chairman Xi Jinping sent a hard-line handler, Commerce Minister Zhong Shan, to accompany the more moderate Vice-Premier Liu He.  Zhong Shan was noted at the center of the signing ceremony and directly opposite Robert Lighthizer at the luncheon.
The two Beijing representatives highlight the ongoing Dragon -vs- Panda dynamic within China.
Internal to Chinese politics…. If the reformers are successful (Liu He) the compliance and enforcement mechanisms will succeed and ‘phase-one’ will lead to future negotiations.  However, if the hardliners block reform (Zhong Shan), then the compliance and enforcement mechanisms will fail and ‘phase-one’ becomes a dead end.
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Earlier today President Trump, together with his trade delegation and the delegation from China represented by Vice-Premier Liu He, signed a new, fully-enforceable Phase One Trade Agreement. This is the first ever trade agreement any nation has attempted to change the dynamic of how a free-market system (USA) can engage with the Communist system within China. [Video Below – Transcript ADDED]
While ‘phase-one‘ was structurally created to set the foundation, and test the principles of enforcement, this historic trade agreement will frame the text that all other free-market nations will follow in their own efforts to come to a substantive agreement with Beijing.
This is a really big deal on a worldwide scale of international commerce.  Structurally the biggest changes inside China relate to Intellectual Property protections, U.S. ownership of assets, and changes within the Chinese legal system to stop Forced Technology Transfer.
During the ceremonial remarks Vice-Premier Liu read a statement from Chinese Chairman Xi Jinping to commemorate this historic trade agreement.

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[Transcript]  PRESIDENT TRUMP: Thank you very much. Please. We greatly appreciate your joining us at this White House event. This is a very important and remarkable occasion.

Today, we take a momentous step — one that has never been taken before with China — toward a future of fair and reciprocal trade, as we sign phase one of the historic trade deal between the United States and China. Together, we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers, and families.

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U.S. Treasury Secretary Steven Mnuchin appears on FOX Business to discuss the U.S-China ‘phase-one’ trade agreement, the benefits, enforcement mechanisms and retention of tariffs and particular sanctions until compliance can be reviewed.
Phase-1 establishes the baselines; resets the ability of U.S. companies to enter China; establishes rules for market entry; and sets the parameters for enforcement.  Any future phase is contingent upon evaluation of phase-one enforcement mechanisms.

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Project Veritas spent some time in Iowa with the revolutionary communists at the heart of Bernie Sanders campaign. In a video expose’ (see here) the Veritas group showcase Bernie Sanders campaign workers who are prominent Antifa activists. The calls to violence are quite disturbing but familiar for those who followed the “Occupy Wall Street” movement, RevCom, or the Democrat Socialists of America; all factions of the same far-left ideology.

(Des Moines, IA) A Bernie Sanders Presidential Campaign Field Organizer, Kyle Jurek, was secretly recorded bragging about his extreme left-wing fringe views, calling for violence and death to those who oppose Sanders’ radical policies. Kyle Jurek, who works out of the Sanders campaign Iowa office, has been paid at least $9,775 since starting in his official campaign role. Project Veritas Action Fund’s undercover journalists secretly recorded Jurek’s statements for months; recording footage on multiple occasions where he lashes out against Sanders’ Democratic opposition, President Trump’s supporters, and others.

The recordings give insight into the mentality of many Sanders staffers and what they truly believe. In the video, Jurek details his expectations for the 2020 Presidential election and emphatically states that cities will “burn” if President Trump wins re-election. (read more)

Protests against the regime of Ayatollah Khamenei erupted today in Tehran following the government admission of shooting down Ukraine Airline Flight 752. In scenes that look familiar to the 2010 ‘green movement’, thousands of Iranian protestors, many young women, have gathered to express their opposition to the dictatorial government.
Stunningly, it has been reported that the U.K. Ambassador in Tehran was arrested for filming the protests.

(Via Daily Mail) Iranians have gathered in the streets of Tehran to demand the resignation of Ayatollah Seyed Ali Khamenei after the regime admitted it had mistakenly shot down a civilian passenger plane.
Angry crowds gathered on Saturday night in at least four locations in Tehran, chanting ‘death to liars’ and calling for the country’s supreme leader to step down over the tragic military blunder, video from the scene shows.

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The results of a massive turnout vote in Taiwan reflect the country wishes to remain free from the overbearing influence of communist China.

(Hong Kong Free Press) […] Taiwan’s incumbent leader Tsai Ing-wen has won Saturday’s presidential election, defeating her Beijing-friendly rival Han Kuo-yu by a wide margin.
[…] With 8.1 million votes as of 10:30pm, Tsai won the highest number of votes of any presidential candidate in Taiwan’s history of democratic elections. Han, on the other hand, received just over 5.5 million votes, according to the Central Election Commission (CEC).

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Earlier today, via Tweet, President Trump announced the ‘phase-one’ agreement between the U.S. and China will be signed January 15, 2020.

As U.S. Trade Representative Robert Lighthizer previously stated this very challenging agreement will be the first-ever attempted trade deal between a state-run economy and a free-market economy.   It will take time to see if communist China will actually follow-through on the terms and conditions.
Ambassador Lighthizer noted the principle challenge is generating an enforceable set of standards -within a written agreement- between a totally controlled communist economic system (China) and a free-market system (USA). No other nation has ever tried, and there is no preexisting trade agreement to facilitate a mapping. What Lighthizer was/is constructing will be what all nations will start to use going forward. This is historic stuff.
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Perhaps the status of the economy in China is even worse than many have suspected.  An interesting public statement from their State Council today highlights a promise by China to support jobs during their current economic downturn.

Against the backdrop of Hong Kong’s protests toward Beijing oppression, a rebellion of the people against the command authority is the single-most feared action by those in charge of government.  If the economy is in worse position than previously thought, this latest statement might explain some of Beijings’ recent trade and economic concessions.

(Reuters) – China will step up support for employment to cope with rising pressure on job security due to internal and external challenges, the cabinet said on Tuesday, as the world’s second-largest economy slows.
Simultaneous downturns in the services and manufacturing industries pose a major problem for authorities seeking to keep a lid on unemployment and prevent social unrest as economic growth decelerates to near three-decade lows.

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