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style="display:none;font-size:1px;color:#333333;line-height:1px;max-height:0px;max-width:0px;opacity:0;overflow:hidden;">The
        US economy is vulnerable and much more dependent on China\u2019s than
        vice versa. The one-year trade war truce that Donald Trump made
        at his meeting with President Xi Jinping proves this.</div>
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href="https://substack.com/app-link/post?publication_id=457596&amp;post_id=177709326&amp;utm_source=post-email-title&amp;utm_campaign=email-post-title&amp;isFreemail=true&amp;r=lvppb&amp;token=eyJ1c2VyX2lkIjozNjc1MTU4MywicG9zdF9pZCI6MTc3NzA5MzI2LCJpYXQiOjE3NjIwODg1MDEsImV4cCI6MTc2NDY4MDUwMSwiaXNzIjoicHViLTQ1NzU5NiIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.JtjjDorhmYDieOt89FAEmV616WsTv-P7Kq6GF6x_JKM"
style="color: rgb(54,55,55);text-decoration: none;"
                        moz-do-not-send="true">Trump is clearly losing
                        the trade war with China, which he started. This
                        is why.</a></h1>
                    <h3 class="subtitle subtitle-HEEcLo" dir="auto"
style="direction: auto;text-align: start;unicode-bidi: isolate;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: normal;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 4px 0 0;color: #777777;line-height: 24px;font-size: 18px;margin-top: 12px;">The
                      US economy is vulnerable and much more dependent
                      on China\u2019s than vice versa. The one-year trade war
                      truce that Donald Trump made at his meeting with
                      President Xi Jinping proves this.</h3>
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href="https://substack.com/@benjaminnorton" moz-do-not-send="true">Ben
                                                Norton</a></div>
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datetime="2025-11-02T13:01:15.197Z">Nov 2, 2025</time></div>
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                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Donald
                      Trump is losing the trade war against China, which
                      he himself started.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      held an important meeting with China\u2019s President
                      Xi Jinping in the South Korean city of Busan on 30
                      October. There, they came to a new agreement,
                      which amounted to a one-year truce.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      US government agreed to lift most of the punitive
                      measures that it had imposed on China since April
                      2025, essentially bringing the situation back to
                      what it was in January, when Trump entered office
                      for his second term.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Although
                      this is not the end of the trade war, China
                      clearly won this battle.</p>
                    <div
class="video-player-with-background is-static video-player-wrapper"
                      role="region" aria-label="Video player"
style="flex-grow: 1;font-size: 16px;line-height: 26px;margin-top: 0.5em;"><a
class="video-player video-player-with-background"
href="https://substack.com/redirect/cba22ead-f982-4165-9454-3783be352677?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
style="position: relative;display: block;width: 100%;cursor: pointer;background-color: rgb(0,0,0);height: auto;border-radius: 8px;padding-bottom: 0"
                        moz-do-not-send="true"><img
                          class="video-player-preview" width="550"
src="https://substackcdn.com/image/fetch/$s_!kob5!,w_1100,h_618,c_fill,f_auto,q_auto:good,fl_progressive:steep/l_play_button_usfui2,w_144,e_colorize:0/https%3A%2F%2Fsubstack-video.s3.amazonaws.com%2Fvideo_upload%2Fpost%2F177709326%2F95b5ba06-bf50-454e-9ec5-b105e3c7bf0b%2Ftranscoded-1761972587.png"
                          data-component-name="VideoPlayer-PreviewImg"
data-testid="video-player-static-preview-image"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;max-width: 100%;height: auto;margin: 0 auto;width: 100%;max-height: 100%;background: black;cursor: pointer;position: relative;border-radius: 8px;"
                          moz-do-not-send="true"></a></div>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">China\u2019s
                      victory in this phase of the trade war confirms
                      its \u201cglobal economic superpower status\u201d</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                      </span><a
href="https://substack.com/redirect/81a34936-58e8-4f57-b894-54d882b016fa?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Financial Times (FT)
                        noted</a><span> that, \u201cUnlike nearly 10 years
                        ago, when Trump\u2019s first trade offensive caught
                        Beijing by surprise, this time a better prepared
                        and economically more powerful China has been
                        able to fight its once far mightier opponent to
                        a standstill\u201d.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Starting
                        in April 2025, </span><a
href="https://substack.com/redirect/291879a5-2ce2-4850-a746-3fb1cfa86006?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Trump threatened sky-high
                        tariffs on countries around the world</a><span>.
                        China is the only one that was able to defend
                        itself and prevent the US from imposing an
                        unequal treaty on it.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">When
                      Trump resorted to the nuclear option and increased
                      tariffs on China to 145%, he thought Beijing would
                      give in. But on the contrary, China hit back with
                      the same level of truly reciprocal duties. This
                      terrified Washington, and Trump backed down.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        same thing happened when the </span><a
href="https://substack.com/redirect/0ec06844-da65-4f66-a7ec-dd5cee9ca897?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Trump administration
                        tightened chip exports to China</a><span>, and
                        added many more Chinese companies to the US
                        Entity List, which was a form of sanctions.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Beijing
                      responded by restricting the export of rare earth
                      metals and magnets to the US. Once again, this
                      frightened Washington, because China dominates the
                      global supply for rare earths, and US companies
                      are extremely reliant on them. Trump was forced to
                      back down.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>This
                        is why the FT quoted an analyst from the major
                        French bank BNP Paribas, who said the United
                        States has come to recognize \u201cthat it is now
                        dealing with a peer rival capable of imposing
                        material economic harm on it \u2014 a relatively new
                        position for the US and a development which, at
                        least to us, </span><em>confirms China\u2019s
                        ascendancy to global economic superpower status</em><span>\u201d
                        (emphasis added).</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
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                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1379" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/5e81c0f0-9fee-4395-91f8-9d5e710612e6?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a30ac186-0f80-448d-a455-966b80b43687_1379x1263.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1263,&quot;width&quot;:1379,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:986121,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa30ac186-0f80-448d-a455-966b80b43687_1379x1263.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="503.73459028281366"
src="https://substackcdn.com/image/fetch/$s_!WlAl!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa30ac186-0f80-448d-a455-966b80b43687_1379x1263.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">With
                      that said, the FT cautioned that this is by no
                      means the end of the trade war, and the agreements
                      made by the two sides \u201cwere relatively narrow and
                      mostly suspended existing punitive measures rather
                      than scrapping them altogether\u201d, which \u201cmakes
                      further US-China tensions inevitable\u201d.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">A
                      scholar at the Institute of International Studies
                      at China\u2019s highly influential Fudan University,
                      Zhao Minghao, explained, \u201cThis summit can only
                      bring about a tactical détente rather than a
                      strategic reset for the US-China relations\u201d.</p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">USA
                      makes more concessions than China</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><a
href="https://substack.com/redirect/12705ee4-6fce-4594-96ec-af9eb0abb40e?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Bloomberg concluded</a><span>
                        that the US made more concessions than China,
                        following the Trump-Xi meeting in South Korea.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>As
                        part of the deal, the US government agreed to
                        halt Trump\u2019s threat of an additional 100%
                        tariff, to reduce its fentanyl-related duties on
                        China from 20% to 10%, to remove the new Chinese
                        companies that were added to its Entity List,
                        and to </span><a
href="https://substack.com/redirect/373909e9-9c0b-4128-97b2-3c7732a9cac5?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">suspend port fees</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">For
                      its part, China agreed to lift its rare earth
                      controls and further restrict the export of
                      chemicals needed to make fentanyl (although
                      Beijing had already done the latter). China will
                      also resume its purchases of US soybeans (which is
                      discussed further below).</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      and has allies have claimed that China also will
                      buy US oil and gas and potentially allow a deal on
                      TikTok, but this has not been confirmed; it is
                      purely hypothetical.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        Associated Press also concluded that Trump won
                        nothing in the agreement, reporting: \u201cDeal
                        between the US and China is </span><a
href="https://substack.com/redirect/eb51f358-b043-4662-9c8e-cc33051f0234?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">undoing damage from a
                        self-inflicted trade war</a><span>\u201d.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      AP quoted an economist at Cornell University,
                      Eswar Prasad, who commented, \u201cIt is hard to see
                      what major gains the U.S. has made in the
                      bilateral relationship relative to where things
                      stood before Trump took office\u201d.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      other words, Trump waged an aggressive trade war
                      against China for months, only to end up back at
                      square one, empty-handed.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1304" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/daed132c-e79a-4672-bad7-57309ca13756?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/501121cb-c60a-40df-9b93-1792d1d31f4c_1304x1070.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1070,&quot;width&quot;:1304,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:862291,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F501121cb-c60a-40df-9b93-1792d1d31f4c_1304x1070.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="451.3036809815951"
src="https://substackcdn.com/image/fetch/$s_!P6uw!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F501121cb-c60a-40df-9b93-1792d1d31f4c_1304x1070.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">US
                      economy is more dependent on China\u2019s than vice
                      versa</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>This
                        is quite ironic, because back in April, when
                        Trump massively escalated the trade war, US
                        Treasury Secretary Scott Bessent claimed </span><a
href="https://substack.com/redirect/5410bd4b-e134-413b-a4b2-432456f4a019?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">China was playing with a
                        \u201closing hand\u201d</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Bessent,
                      a billionaire hedge fund manager from Wall Street,
                      insisted that the United States had much more
                      leverage over China, and that Beijing would soon
                      surrender.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">\u201cWhat
                      do we lose by the Chinese raising tariffs on us?
                      We export one-fifth to them of what they export to
                      us, so that is a losing hand for them\u201d, he said.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">It
                      turns out the exact opposite was true; the US
                      economy is more dependent on China\u2019s.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/160dcf08-7607-40a6-8da1-bbe598c85f80?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/c0f53d78-0fff-4c01-ba01-764a79c4151d_1920x1920.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1456,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:119286,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/webp&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc0f53d78-0fff-4c01-ba01-764a79c4151d_1920x1920.webp&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550" height="550"
src="https://substackcdn.com/image/fetch/$s_!rIgO!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc0f53d78-0fff-4c01-ba01-764a79c4151d_1920x1920.webp"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Back
                      in 2000, yes, China was very dependent on the US
                      economy. At that time, trade with the US was
                      around one-quarter of China\u2019s overall trade.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      the past two decades, however, China has
                      significantly reduced its dependence on trade with
                      the US. By 2023, it was only around 10% of China\u2019s
                      overall trade.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>When
                        one analyzes </span><a
href="https://substack.com/redirect/485abbcd-c1f9-4f0b-b3a1-37eed873dd8b?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">what exactly China
                        exports to the US</a><span>, and vice versa, one
                        can clearly see that it is the US that is more
                        dependent.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/c32a6acd-0521-4b04-9319-a0fbef3783bd?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/5273fac5-c826-4810-b4a9-bc38a3592773_1471x1097.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1086,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:286546,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F5273fac5-c826-4810-b4a9-bc38a3592773_1471x1097.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="410.2335164835165"
src="https://substackcdn.com/image/fetch/$s_!PXKn!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F5273fac5-c826-4810-b4a9-bc38a3592773_1471x1097.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China
                      exports many technological products that the US
                      cannot get from anywhere else, including cell
                      phones, computers, batteries, machinery, and
                      parts.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is no longer the 1980s and \u201890s, when much of
                      China\u2019s exports to the US consisted of low
                      value-added goods, like textiles, toys, and
                      household appliances. China has very quickly moved
                      up the global value chain.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">On
                      the other hand, many of the goods the US exports
                      to China are commodities like oil, gas, soybeans,
                      and corn. China can easily buy these from other
                      countries.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">There
                      are still a few important US goods that China has
                      been dependent on, especially advanced
                      semiconductors \u2014 although that is quickly changing
                      (as will be discussed later in this article).</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      US previously exported a sizeable number of cars
                      to China. But China has become the world\u2019s number
                      one producer of cars, and most people in the
                      country prefer buying cars from Chinese companies,
                      which are much more affordable.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      and Bessent think the China of today is still that
                      of the \u201880s and \u201890s, when its economy revolved
                      around exported low value-added, labor-intensive
                      goods of questionable quality. Those days are long
                      gone.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Chinese government successfully used industrial
                      policy, state-led development policies, and a
                      careful mixture of central planning and regulated
                      market competition in order to rapidly move up the
                      global value chain, create complex supply chains,
                      promote technological self-sufficiency, and
                      massively boost industrial output. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        results speak for themselves: today, </span><a
href="https://substack.com/redirect/3a3ffa79-a25c-48c3-803d-48b4b2a0b0bf?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">China is the world\u2019s sole
                        manufacturing superpower</a><span>.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/b744515b-306f-44e5-999b-eaef15e6033e?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/14cfdd13-5b75-43b3-b230-ecd2d5c0cd81_1492x849.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:829,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:293600,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F14cfdd13-5b75-43b3-b230-ecd2d5c0cd81_1492x849.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="313.1524725274725"
src="https://substackcdn.com/image/fetch/$s_!ydNu!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F14cfdd13-5b75-43b3-b230-ecd2d5c0cd81_1492x849.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      fact, while China has become less dependent on
                      exporting to the US market, US companies have
                      become more reliant on the import of Chinese
                      intermediate goods and other inputs.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/f3d425c5-bcdc-4dab-85b6-37611c316b32?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/e9752948-82e7-435e-a89e-d81abd1cf3ba_1492x841.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:821,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:248919,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe9752948-82e7-435e-a89e-d81abd1cf3ba_1492x841.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="310.1304945054945"
src="https://substackcdn.com/image/fetch/$s_!4H_R!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe9752948-82e7-435e-a89e-d81abd1cf3ba_1492x841.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Bessent
                      argued that China was more dependent on the US
                      market because it has a large trade surplus.
                      However, the vast majority of the revenue of
                      Chinese companies comes from domestic purchases.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Yes,
                      China does generate significant revenue through
                      the export of consumer electronics, but even in
                      that industry, the majority of revenue derives
                      from domestic sales. For all other major Chinese
                      industries, domestic revenues make up the vast
                      majority of total revenue.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="965" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/b2123b53-e3c1-4e00-941d-7dc05c393cc8?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/6903069e-8c67-45b9-8e6a-66d99f08d990_965x1041.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1041,&quot;width&quot;:965,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:37755,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6903069e-8c67-45b9-8e6a-66d99f08d990_965x1041.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="593.3160621761658"
src="https://substackcdn.com/image/fetch/$s_!9F7U!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F6903069e-8c67-45b9-8e6a-66d99f08d990_965x1041.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Some
                      of China\u2019s exports are still going to the US
                      market, albeit indirectly, by rerouting through
                      third countries, like Vietnam, Indonesia,
                      Thailand, or Mexico.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Companies
                      in those countries often add more value to a
                      product that originated in China, and subsequently
                      export it to the US, where it will not be labeled
                      as a Chinese good.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">However,
                      from the perspective of a Chinese exporter, this
                      is not a problem. It simply wants to sell the
                      product; it doesn\u2019t care where the product goes
                      after.</p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">China\u2019s
                      rare earth supply chain dominance forced the US to
                      pause its aggressive trade war</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">One
                      of the biggest and most important takeaways of
                      China\u2019s victory in this round of the trade war is
                      the importance of rare earth elements.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China
                      completely dominates the global supply chain for
                      rare earths, including both the mining and the
                      processing.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>China
                        made up more than 60% of the mining and </span><a
href="https://substack.com/redirect/dd6dbcd0-b8af-4585-923a-bda13291d89b?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">around 90% of the
                        refining of rare earths</a><span>, as of 2024.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Despite
                      the name, rare earths are actually not that rare;
                      they can be found in many places around the world.
                      What wakes it difficult for other countries to
                      replace China in the supply chain, however, is the
                      processing of rare earths, which is complex, labor
                      intensive, and environmentally destructive.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      United States has tried to increase its role in
                      the global rare earth industry, especially after
                      Trump launched the trade war against China in his
                      first term as president, but it has not made much
                      progress.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">It
                      will take years, if not decades, for the US to
                      make significant advances.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1200" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/49010f1e-79f3-4f7a-9609-14e1255b2fff?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/c8acb8aa-119b-4d8d-a5ba-9699c0b7baf2_1200x1200.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1200,&quot;width&quot;:1200,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:356572,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc8acb8aa-119b-4d8d-a5ba-9699c0b7baf2_1200x1200.jpeg&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550" height="550"
src="https://substackcdn.com/image/fetch/$s_!zb5o!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc8acb8aa-119b-4d8d-a5ba-9699c0b7baf2_1200x1200.jpeg"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">When
                      China responded to Trump\u2019s aggressive, unilateral
                      escalation of the trade war in 2025, and, in an
                      act of self-defense, decided to restrict the
                      export of rare earths to the US, it terrified not
                      only Washington, but also the military-industrial
                      complex.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">US
                      tech companies, particularly arms manufacturers
                      and other US military contractors, are very
                      dependent on China\u2019s rare earth metals and
                      magnets.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        hawkish anti-China think tank the Center for
                        Strategic and International Studies (CSIS) \u2014
                        which is </span><a
href="https://substack.com/redirect/b079eeec-f32d-4628-8257-78ef976e35e8?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">funded by the US
                        government</a><span>, other Western governments,
                        and large corporations in the
                        military-industrial complex \u2014 published a report
                        warning that \u201cChina\u2019s new rare earth and magnet
                        restrictions </span><a
href="https://substack.com/redirect/66105792-fd6e-4307-bafa-53591b360c67?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">threaten U.S. defense
                        supply chains</a><span>\u201d.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Ironically,
                        the </span><a
href="https://substack.com/redirect/7506395f-15b9-41d9-9c31-c61fc11744ce?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">US military is making
                        plans for a potential war on China</a><span>,
                        but it can\u2019t do so without China\u2019s rare earths.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is why the US government in the past decade has
                      poured resources into trying to develop a new
                      supply chain for critical minerals that cuts out
                      China.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">However,
                      the journals and media outlets of the US
                      military-industrial complex acknowledge that the
                      US cannot realistically catch up in the production
                      of rare earths. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>As
                        the US media outlet National Defense put it,
                        \u201cthe United States will </span><a
href="https://substack.com/redirect/a74009ef-3cd1-49f1-bd5c-9c84e100bcaa?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">not be able to end
                        reliance on China</a><span> through domestic
                        production\u201d.</span></p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">US
                      \u201cchip war\u201d targets China</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">It
                      must be emphasized that the reason that China put
                      restrictions the export of rare earths is because
                      it was responding to US attacks; it was an act of
                      self-defense.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      started the trade war on China in his first term.
                      However, the Democratic administration of Joe
                      Biden continued this trade war. The new cold war \u2014
                      Cold War Two \u2014 is bipartisan in Washington.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>In
                        fact, the </span><a
href="https://substack.com/redirect/1b8ede07-077c-4b73-8c87-026a3d989424?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Biden administration put
                        significant restrictions on the export of
                        technologies</a><span> to China, prohibiting the
                        export of advanced semiconductors and
                        chip-making tools.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      idea in Washington was that this would be the
                      Achilles\u2019 heel of China. US imperial strategists
                      thought that, by waging a tech war on China, they
                      could prevent it from catching up in cutting-edge
                      industries, especially artificial intelligence.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Washington
                        hoped that </span><a
href="https://substack.com/redirect/64402568-fc8c-4486-ad70-7ad4645cb370?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">US Big Tech corporations
                        in Silicon Valley would have a monopoly on AI</a><span>,
                        and China would be left behind.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Commerce
                        Secretary Gina Raimondo even admitted that the
                        US government\u2019s goal was to \u201c</span><a
href="https://substack.com/redirect/91dd5f23-3c7a-41ea-b65d-876e5822cb09?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">slow down China\u2019s rate of
                        innovation</a><span>\u201d.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/e2d3b917-d09c-4ba1-9044-0d89bf7633e0?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/83fbeda6-30d0-419b-8783-ef95e6dae7ab_1614x1140.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1028,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:378986,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F83fbeda6-30d0-419b-8783-ef95e6dae7ab_1614x1140.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="388.3241758241758"
src="https://substackcdn.com/image/fetch/$s_!0405!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F83fbeda6-30d0-419b-8783-ef95e6dae7ab_1614x1140.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">That,
                      of course, is not what happened.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Just
                      as China\u2019s restrictions on the export of rare
                      earths caused the US government to pour resources
                      into developing its own supply chain for critical
                      minerals, the same thing has happened with
                      semiconductors. The US restrictions on the exports
                      of semiconductors to China led Beijing to
                      prioritize the development of its own domestic
                      chip-making industry.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China\u2019s
                      industrial policy promoted the local production of
                      semiconductors. And it has been quite successful.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>In
                        April 2024, Raimondo warned, \u201cAbout </span><a
href="https://substack.com/redirect/3d1e8cc2-f9ad-4c71-be68-33aada9deba3?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">60% of all new \u2018legacy
                        chips\u2019</a><span> coming into the market in the
                        next handful of years will be produced by
                        China\u201d. </span><a
href="https://substack.com/redirect/571b66ab-8934-4487-9ee5-6a80f6f730f7?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Legacy chips</a><span>
                        are those used in most everyday technologies.
                        They are not the most advanced chips, but they
                        are much more common.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      US \u201cchip war\u201d against China ended up pushing
                      Beijing to increase government incentivizes for
                      domestic semiconductor manufacturing, and China is
                      now dominating the global chip market.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Yes,
                      China has not caught up in developing the most
                      advanced chips; the US is still ahead. But China
                      is making progress fast.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>This
                        is why Beijing decided to restrict Chinese tech
                        companies from </span><a
href="https://substack.com/redirect/bac6fc66-5340-4b12-8861-3291da9261de?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">purchasing chips from
                        Nvidia</a><span>, the US tech giant that has now
                        become the largest corporation on Earth by
                        market capitalization, because it has a monopoly
                        on designing the most advanced chips. China said
                      </span><a
href="https://substack.com/redirect/6d9d4311-c749-46ae-ac8f-b76bc9a3c6b1?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Nvidia violates its
                        anti-monopoly laws</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Instead
                      of Chinese companies remaining dependent on the
                      purchase of Nvidia chips, Beijing wants to promote
                      domestic self-sufficiency. </p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">China
                      progresses fast, leading in most global critical
                      technologies</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China\u2019s
                      rapid progress in the US \u201cchip war\u201d demonstrates
                      the success of Beijing\u2019s industrial policy, its
                      state-led drive to move up the value chain and
                      produce higher value-added goods.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Such
                      technological upgrading is at the heart of China\u2019s
                      new five-year plan. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>China
                        does have a market economy, but it it a </span><em><a
href="https://substack.com/redirect/8febf616-0d16-4c23-a137-84695d549b62?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                          rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                          moz-do-not-send="true">socialist</a></em><a
href="https://substack.com/redirect/8febf616-0d16-4c23-a137-84695d549b62?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true"> market economy</a><span>,
                        where the most important sectors \u2014 the
                        commanding heights of the economy \u2014 are publicly
                        owned by the government, and central planning is
                        still used in strategic industries.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Communist Party of China\u2019s five-year plan for 2026
                      to 2030 heavily emphasizes the importance of
                      technological progress.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>In
                        particular, the new </span><a
href="https://substack.com/redirect/b646e31e-9b75-4dae-8182-af45a96e41bc?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">five-year plan calls for
                        \u201cextraordinary measures\u201d</a><span> to bring
                        about breakthroughs in advanced chip production.
                      </span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is not just rhetoric. If one looks at China\u2019s past
                      plans, most of its goals were achieved.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">A
                      good example is the Made in China 2025 initiative.
                      This was a plan announced in 2015, when Beijing
                      set goals to become globally competitive in
                      cutting-edge tech industries. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><a
href="https://substack.com/redirect/db7ee86e-44ce-428c-bbb3-ed0286459cc2?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Bloomberg concluded that
                        China was successful</a><span> in almost all of
                        the industries it targeted. It is already the
                        global leader in five key technologies, and is
                        rapidly catching up in seven more.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1066" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/0c2452bb-7258-4ffb-af9d-c94eda5e6d4c?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/0cf1f274-75bb-4264-be6a-10b38ac83fdf_1066x1476.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1476,&quot;width&quot;:1066,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:527372,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0cf1f274-75bb-4264-be6a-10b38ac83fdf_1066x1476.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="761.5384615384615"
src="https://substackcdn.com/image/fetch/$s_!bn2S!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F0cf1f274-75bb-4264-be6a-10b38ac83fdf_1066x1476.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      was in fact admitted by a Western think tank that
                      is very anti-China.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Australian Strategic Policy Institute (ASPI) is
                      backed by the Australian military and funded by
                      multiple Western governments. It is extremely
                      hawkish and constantly spreads anti-China
                      propaganda.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>However,
                      </span><a
href="https://substack.com/redirect/e8e6142a-dad8-4e27-8ff7-55117ddee0c8?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">ASPI published a report
                        in 2024</a><span> acknowledging that China has
                        made incredible technological and scientific
                        progress in a short period of time.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">ASPI
                      reluctantly concluded that China \u201cis currently
                      leading in 57 of 64 critical technologies\u201d, or
                      89%.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      was a, well, great leap forward from the 2003-07
                      period, when China was leading in only three of 64
                      key technologies, or a mere 4.7%.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      stark contrast, this hawkish think tank lamented
                      that the \u201cUS is losing the strong historical
                      advantage that it has built\u201d. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Two
                      decades ago, the United States was leading in 60
                      out of 64 critical technologies, or 94%.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Today,
                      the US is only leading in seven of those 64
                      technologies, or 11%, measured from 2019 to 2023.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is a tectonic shift in just two decades.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/f4b4e163-2a83-4db4-a034-b834851e6978?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/15da22f5-f082-403e-bc16-c5b7a9eb219a_1526x1207.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1152,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:313782,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F15da22f5-f082-403e-bc16-c5b7a9eb219a_1526x1207.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="435.16483516483515"
src="https://substackcdn.com/image/fetch/$s_!N-ya!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F15da22f5-f082-403e-bc16-c5b7a9eb219a_1526x1207.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China
                      is today the world\u2019s indisputable technological
                      and manufacturing superpower, due in no small part
                      to government planning and industrial policy.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>And
                        China continues to advance. Its new five-year
                        plan emphasizes the importance of \u201c</span><a
href="https://substack.com/redirect/7b552d3f-705c-4240-85b7-49c456899282?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">technological
                        self-reliance</a><span>\u201d, as the country catches
                        up in the industries where it is still behind.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Given
                      this context, it is no surprise that the US
                      government\u2019s trade war and tech war on China
                      backfired.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Trump administration clearly underestimated China,
                      and decided it needed a temporary truce to change
                      strategy.</p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">Trump
                      suspends the trade war for a year, as the 2026
                      midterm elections approach</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        Financial Times described the US-China deal as a
                        \u201c</span><a
href="https://substack.com/redirect/55dfa6d0-0b3a-439e-90c9-304698acc6e1?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">one-year trade truce</a><span>\u201d.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump,
                      on the other hand, in his typical bombastic
                      fashion, claimed it was \u201can amazing meeting\u201d and,
                      \u201cOn a scale of 0-10, with 10 being the best, the
                      meeting was a 12\u201d.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is because Trump always claims he wins everything,
                      and he will never admit defeat (including in the
                      2020 US presidential election). He doesn\u2019t want to
                      acknowledge the fact that he is losing the trade
                      war that he started back in his first term as
                      president, which he massively escalated in April
                      2025.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">A
                      major factor motivating Trump to seek this
                      one-year truce with China is the US midterm
                      elections coming up in 2026.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      is afraid that continuing to escalate the trade
                      war on China would blow back on the US economy and
                      hurt the Republican Party\u2019s chances in the
                      midterms.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Polling
                        by Pew Research shows that </span><a
href="https://substack.com/redirect/ea006b84-c48a-461a-b069-ee2d114fb3af?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">the Republican Party is
                        very unpopular</a><span>. The majority of
                        Americans say the GOP is too extreme in its
                        positions and do not think that it governs in an
                        honest way. (The study also demonstrates that
                        the Democrats are very unpopular. Both parties
                        are widely mistrusted.)</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="620" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/6b044fe1-e1f4-4919-9434-31e3185148bb?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/db3bdd5c-5cca-425e-b090-778917a6055a_620x836.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:836,&quot;width&quot;:620,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:95518,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fdb3bdd5c-5cca-425e-b090-778917a6055a_620x836.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="741.6129032258065"
src="https://substackcdn.com/image/fetch/$s_!GoMt!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fdb3bdd5c-5cca-425e-b090-778917a6055a_620x836.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Moreover,
                      polls show that Trump is very unpopular. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Trump
                        had a net approval rating of -18% as of 1
                        November, which was 285 days into his second
                        term as US president, according to </span><a
href="https://substack.com/redirect/4f08c90d-1f78-45d1-a053-1b8ff938ce13?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">polling from The
                        Economist</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Only
                      39% of Americans support Trump and his policies.
                      Nearly 3/5ths of Americans, 57%, disapprove of
                      Trump.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1152" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/d96b3451-bcac-4289-b7aa-6054d0a58c3c?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/cfa03f2c-8ec7-4bda-890d-e21de6239eef_1152x1033.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1033,&quot;width&quot;:1152,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:134783,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fcfa03f2c-8ec7-4bda-890d-e21de6239eef_1152x1033.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="493.1857638888889"
src="https://substackcdn.com/image/fetch/$s_!t-ib!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fcfa03f2c-8ec7-4bda-890d-e21de6239eef_1152x1033.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">Trump\u2019s
                      tariffs hurt working-class Americans, driving
                      inflation</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">It
                      makes sense that most Americans disapprove of
                      Trump, because his policies have done a lot of
                      damage to average working people.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Most
                      of the burden of Trump\u2019s tariffs has fallen on the
                      shoulders of US consumers.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><a
href="https://substack.com/redirect/0cdf2a82-aa45-4732-ab11-82c716d86fab?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">US consumers are paying
                        for 55% of the cost of Trump\u2019s tariffs</a><span>,
                        according to analysis by Goldman Sachs.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/cc9a2cd4-8b94-4876-86c3-4f9c7c2a368e?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/8a594de1-3d17-4b24-83f7-97f3387c655b_1685x634.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:548,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:97600,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8a594de1-3d17-4b24-83f7-97f3387c655b_1685x634.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="207.0054945054945"
src="https://substackcdn.com/image/fetch/$s_!2Myi!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8a594de1-3d17-4b24-83f7-97f3387c655b_1685x634.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      has falsely claimed for years that other countries
                      pay tariffs. That is simply not true; it is a lie.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Tariffs
                      are a tax on imports. It is importers in the
                      country where the duties are imposed that pay
                      them. So US importers pay Trump\u2019s tariffs.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Companies
                      in the US that import goods from China pay the
                      tariffs, not Chinese exporters.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Importers
                      usually they pass down the costs of those tariffs
                      to customers, in the form of higher prices. This
                      is exactly what is happening in the US.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1141" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/3f69c2a8-9402-493a-8301-1e02e080039a?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/3af876bb-182d-45e2-b3af-f87f4090b9c2_1141x970.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:970,&quot;width&quot;:1141,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:66033,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3af876bb-182d-45e2-b3af-f87f4090b9c2_1141x970.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="467.57230499561786"
src="https://substackcdn.com/image/fetch/$s_!QpbY!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F3af876bb-182d-45e2-b3af-f87f4090b9c2_1141x970.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      other words, Trump has been raising consumption
                      taxes on working-class Americans with his tariffs.
                      This is a form of regressive taxation.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Meanwhile,
                      Trump has massively slashes taxes on the richest
                      Americans, effectively shifting the burden of
                      taxation off of capital and onto labor.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/1ff6f40c-f49f-4f9b-9df6-eee6cc621c7b?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/78d17f9d-20ea-4257-adaa-1faa50b43ebb_2251x2088.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1351,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:135840,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F78d17f9d-20ea-4257-adaa-1faa50b43ebb_2251x2088.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="510.33653846153845"
src="https://substackcdn.com/image/fetch/$s_!ytyh!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F78d17f9d-20ea-4257-adaa-1faa50b43ebb_2251x2088.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Furthermore,
                      this comes at a time when consumer price inflation
                      in the US has remained relatively high.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                      </span><a
href="https://substack.com/redirect/c96a79c4-9968-4d71-929d-d8bb3b968151?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">consumer price index
                        (CPI)</a><span> was at 3% in September 2025. It
                        has stuck persistently above the 2% inflation
                        target that is set by the Federal Reserve, the
                        US central bank.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Consumer
                      price inflation has been rising ever since Trump
                      imposed massive tariffs on countries around the
                      world in April.</p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/7e41e0ae-cdfb-443d-bdf8-28540259235a?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/d3a12263-8819-4fa8-9401-dafd40bc9057_1971x760.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:561,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:107864,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd3a12263-8819-4fa8-9401-dafd40bc9057_1971x760.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="211.9162087912088"
src="https://substackcdn.com/image/fetch/$s_!BuMl!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd3a12263-8819-4fa8-9401-dafd40bc9057_1971x760.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      is all deeply ironic, because inflation was the
                      main reason that Trump won the 2024 US
                      presidential election. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Due
                      to supply chain disruptions during the Covid-19
                      pandemic, countries worldwide suffered from high
                      rates of inflation in 2022-23. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">In
                      the US, the CPI peaked at 9% in June 2022. This
                      was the highest level in decades.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Most
                      political parties and leaders that were in power
                      during this inflation crisis lost elections. The
                      US was no exception.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>US
                        voters said </span><a
href="https://substack.com/redirect/c1901b00-8a75-4ca0-b848-e6a702fec45d?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">the economy was the most
                        important issue</a><span> in the 2024 election.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Joe Biden administration did not handle the
                      inflation crisis well. Inequality skyrocketed in
                      the US; the rich got much, much richer, while poor
                      and working-class people struggled.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Trump
                        claimed he would solve the economic issues and
                        bring down inflation. He has utterly failed to
                        do so, and has in fact made the problems even
                        worse. Trump\u2019s policies have mostly benefited
                        billionaires like him, and the </span><a
href="https://substack.com/redirect/ffccb9a3-9f92-46f1-890d-29a4b057b6ad?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">dozen other billionaires
                        in his administration</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">However,
                      Biden, Kamala Harris, and the Democratic Party did
                      not propose pro-working class policies that would
                      solve these economic problems. They failed to
                      provide an alternative to the neoliberal status
                      quo.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      won the election because he had a simplistic
                      message, claiming he would solve these deep,
                      structural economic problems with some quick
                      fixes: scapegoating immigrants, carrying out mass
                      deportations, and imposing tariffs.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">These
                      policies have only made the situation worse.</p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">The
                      US is losing manufacturing jobs</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      claimed he would re-industrialize the US and bring
                      back good manufacturing jobs. The opposite has
                      been happening.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      number of manufacturing jobs has in fact been
                      falling under Trump.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                      </span><a
href="https://substack.com/redirect/c34aa9c9-50a7-4f41-af5e-60fed5ce10b3?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">US lost 42,000
                        manufacturing jobs</a><span> between April, when
                        Trump kicked off his global trade war, and
                        August 2025, according to data from the Bureau
                        of Labor Statistics (BLS).</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1456" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/bcca6d03-b25e-415a-b1a6-30a84deeb4a2?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/8df21d97-7e7a-4635-a508-85df575259ba_1797x715.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:579,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:78483,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8df21d97-7e7a-4635-a508-85df575259ba_1797x715.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="218.71565934065933"
src="https://substackcdn.com/image/fetch/$s_!hNT9!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F8df21d97-7e7a-4635-a508-85df575259ba_1797x715.png"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Surveys
                      of manufacturers have found that the main reason
                      for the job loss is the extreme uncertainty
                      surrounding Trump\u2019s tariffs and trade war.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>CBS
                        News reported that many of the </span><a
href="https://substack.com/redirect/87e29f3b-52fd-43a9-8d32-28039f2315b6?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">workers who lost their
                        jobs</a><span> had been making goods like cars,
                        household appliances, and electronics. These
                        were relatively well-paid jobs that provided
                        stability for working-class families.</span></p>
                    <h3 class="header-anchor-post"
style="position: relative;font-family: 'SF Pro Display',-apple-system-headline,system-ui,-apple-system,BlinkMacSystemFont,'Segoe UI',Roboto,Helvetica,Arial,sans-serif,'Apple Color Emoji','Segoe UI Emoji','Segoe UI Symbol';font-weight: bold;-webkit-font-smoothing: antialiased;-moz-osx-font-smoothing: antialiased;-webkit-appearance: optimizelegibility;-moz-appearance: optimizelegibility;appearance: optimizelegibility;margin: 1em 0 0.625em 0;color: rgb(54,55,55);line-height: 1.16em;font-size: 1.375em;">Trump\u2019s
                      tariffs hurt US farmers, many of whom voted for
                      him</h3>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Trump\u2019s
                        trade war on China also hurt a major part of </span><a
href="https://substack.com/redirect/fe5ebfd2-dec5-4afe-bb51-426ebc295325?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">his voting base: farmers</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">US
                      soybean farmers rely heavily on exporting to the
                      Chinese market.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">As
                      part of the agreement that was made between Trump
                      and President Xi in South Korea in October, the
                      Treasury Secretary Scott Bessent boasted that
                      China agreed to buy 12 million metric tons of US
                      soybeans. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>That
                        may sound like a lot, but it actually represents
                        a big decline compared to the previous year.
                        Reuters reported that, last season, </span><a
href="https://substack.com/redirect/d9563dbe-c5c9-4d3f-8bfb-bea16c45cd93?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">China bought 22.5 million
                        tons of US soybeans</a><span>. </span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">According
                      to Bessent, China agreed to buy 25 million tons of
                      US soybeans per year for the next three years.
                      However, this is below the annual average of 28.8
                      million tons that China had already been buying
                      from the US, before Trump started this new phase
                      of the trade war in April.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">China
                      had paused its import of soybeans in response to
                      Trump\u2019s aggressive, unilateral trade war. </p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">So
                      in reality, China is not making any concessions to
                      the Trump administration by agreeing to buy
                      soybeans; it is simply returning to the status quo
                      ante.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Meanwhile,
                      throughout this trade war, US farmers endured
                      severe economic pain, for no reason.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>\u201cThe
                      </span><a
href="https://substack.com/redirect/d9563dbe-c5c9-4d3f-8bfb-bea16c45cd93?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">drop in Chinese demand
                        cost U.S. farmers</a><span> - a key pillar of
                        Trump\u2019s political base - billions of dollars in
                        lost sales and the deal would represent a return
                        to normalcy in trade\u201d, Reuters wrote.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">What
                      this demonstrates, again, is that, when Bessent
                      claimed China had a \u201closing hand\u201d, it was the
                      opposite of reality. China had more options than
                      the US did.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>When
                        Trump massively escalated the US trade war,
                        China responded by buying significantly </span><a
href="https://substack.com/redirect/41dab991-80eb-4315-ae80-b5141fc1481f?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">more soybeans from
                        Argentina</a><span>.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>China
                        also increased its purchases of </span><a
href="https://substack.com/redirect/1e403858-b951-45f0-a748-a3f660308d24?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">soybeans from Brazil</a><span>,
                        which has become a major trading partner of
                        China, and a key ally.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><a
href="https://substack.com/redirect/2698b691-a6ac-4db2-83b5-ab528f7d1c96?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">Brazil is the B in BRICS</a><span>;
                        it is one of the co-founders of the Global
                        South-led organization. The growing partnership
                        between China and Brazil shows how Beijing has
                        alternatives to the US.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">The
                      Trump administration drank its own kool-aid, and
                      believed that China was isolated. That was its
                      mistake.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">This
                      disastrous, self-destructive episode was eerily
                      reminiscent of Trump\u2019s first term (2017-21), when
                      he started the trade war on China.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>Nearly
                        all of the revenue that the US government made
                        from imposing tariffs on China from 2018 to 2020
                        ended up being given to US farmers in the form
                        of relief payments and subsidies. Those were
                        equal to </span><a
href="https://substack.com/redirect/5a56f577-1d06-4fa9-a67b-25c201af9340?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">92% of the tariff
                        proceeds</a><span>.</span></p>
                    <div class="captioned-image-container-static"
style="font-size: 16px;line-height: 26px;margin: 32px auto;">
                      <figure style="width: 100%;margin: 0 auto;">
                        <table class="image-wrapper" width="100%"
                          border="0" cellspacing="0" cellpadding="0"
                          data-component-name="Image2ToDOMStatic"
                          style="mso-padding-alt: 1em 0 1.6em;">
                          <tbody>
                            <tr>
                              <td style="text-align: center;"></td>
                              <td class="content" align="left"
                                width="1360" style="text-align: center;"><a
                                  class="image-link" target="_blank"
href="https://substack.com/redirect/58ea0b51-aada-445a-84e0-1a37eafaaa2f?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                                  rel=""
style="position: relative;flex-direction: column;align-items: center;padding: 0;width: auto;height: auto;border: none;text-decoration: none;display: block;margin: 0;"
                                  moz-do-not-send="true"><img
                                    class="wide-image"
data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/d6eae893-2c21-4713-ba52-ecd36b174646_1360x790.webp&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:790,&quot;width&quot;:1360,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:36764,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/webp&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.geopoliticaleconomy.report/i/177709326?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd6eae893-2c21-4713-ba52-ecd36b174646_1360x790.webp&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}"
                                    alt="" width="550"
                                    height="319.4852941176471"
src="https://substackcdn.com/image/fetch/$s_!GliE!,w_1100,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd6eae893-2c21-4713-ba52-ecd36b174646_1360x790.webp"
style="border: none !important;vertical-align: middle;display: block;-ms-interpolation-mode: bicubic;height: auto;margin-bottom: 0;width: auto !important;max-width: 100% !important;margin: 0 auto;"
                                    moz-do-not-send="true"></a></td>
                              <td style="text-align: center;"></td>
                            </tr>
                          </tbody>
                        </table>
                      </figure>
                    </div>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">Trump
                      has claimed that his tariffs will supposedly raise
                      lots of revenue for the US government \u2014 while
                      lying about the fact that that revenue comes from
                      working-class Americans, given that his tariffs
                      are a regressive tax on consumption of imported
                      goods.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;">But
                      even much of the revenue that the US government
                      did earn from tariffs during Trump\u2019s first term
                      was given back to Americans in the form of relief
                      payments, to try to undo the economic harm caused
                      by Trump\u2019s trade war in the first place.</p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;"><span>The
                        second Trump administration has been repeating
                        these same, self-destructive policies. It has
                        considered paying </span><a
href="https://substack.com/redirect/5d866ba3-4430-42b1-83cc-6dc0fec65db2?j=eyJ1IjoibHZwcGIifQ.9RIwWbE6EVIB7Jy8lfazxZKfps8R18neRGMKwOiqnRM"
                        rel=""
style="color: rgb(54,55,55);text-decoration: underline;"
                        moz-do-not-send="true">another $10 billion to US
                        farmers</a><span>, who have been harmed by
                        Trump\u2019s trade war, exactly like in his first
                        term.</span></p>
                    <p
style="margin: 0 0 20px 0;color: rgb(54,55,55);line-height: 26px;font-size: 16px;margin-bottom: 0;">Given
                      all of this information, it is no surprise that
                      Trump\u2019s trade war on China has failed. It is
                      contradictory, foolish, and suicidal; and it is
                      based on falsehoods that grossly underestimate
                      China\u2019s economic strengths, while hopelessly
                      minimizing the deep, structural problems in the US
                      economy.</p>
                  </div>
                </div>
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