Elder Patriot- Following two well-timed tweets from Donald Trump on Sunday the Chinese financial markets went into freefall.
The Shenzhen Composite index (smaller-cap stocks) plunged 7.4 percent, also its worst one-day percentage fall since February 2016. Hong Kong’s Hang Seng Index dropped 2.8 percent.
The Shanghai and Shenzhen markets dropped more than 2.8 trillion yuan ($420 billion). The net outflow of foreign capital reached 8.19 billion yuan ($1.22 billion).
At least 1,000 stocks dropped 10 percent in value, triggering suspension of trading.
For China it was truly Black Monday.
The U.S. stock markets, by comparison, barely yawned, closing slightly off.
It’s clear that investors have joined with U.S. President Trump in recognizing the peril that China is facing if they refuse to end their demands to reverse already negotiated agreements on the much awaited trade deal.
But wait! There are also people inside of China who are cheering President Trump’s more aggressive tone towards these negotiations.
They are the dissidents who have been silenced by China’s Communist Party. These are the people who, like Conservatives in the United States, are still fighting for their God-given freedoms.
Some of these are savvy internet users who have found ways to burrow under China’s Great Firewall that was put in place to prevent uncensored information and opinion from reaching the Chinese people.
One poster tweeted:
“After Trump tweeted about raising tariffs (on Chinese goods), Chinese netizens on Twitter are all celebrating and praising this. I also sincerely hope that this negotiation will fail and tariffs will be raised (as announced by Trump). I also hope that more tariffs will be imposed on all remaining untaxed goods. Thus, the Chinese Communist Party will run out of money soon. Even if these things really happen, regarding Trump, I still want to say, ‘Tactically, he is very smart; but strategically, he is not as great as people expect him to be.’ He is an ‘America First’ president. All his attacks are for the purpose of defense. However, as long as he perseveres to the end, that’s enough!”
Other Chinese netizens are praising Trump’s decision tweet threat through the use of newly created memes.
This meme depicts President Trump in a familiar pose holding up a folio with his signature on a new executive order. It says, “It is I who knocked down the Chinese stock markets.”
General Secretary of the Communist Party, Chairman Xi is pictured looking befuddled.
This one replaces Chairman Mao’s likeness as the “Great Savior” with a photo of Donald Trump.
At the bottom middle, a revolutionary peasant woman is holding a sign that says “We Love Trump.
Translation of the text:
“Trump Is the Great Savior of the Chinese People.”
Trump tweeted about the economic sledgehammer that gives him leverage in the trade negotiations with China, yesterday:
The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!
— Donald J. Trump (@realDonaldTrump) May 6, 2019
That half a trillion dollars we lose every year can easily be turned into China’s loss with the imposition of tariffs.
Steve Bannon: We’re in an economic war with China. It’s futile to compromise. https://t.co/wHSohPReCF
— Josh Caplan (@joshdcaplan) May 6, 2019
While that would result in Americans paying more for the products they are currently buying from China, the increased costs would create the margins American investors need to build those products here.
Many of these jobs would be filled by less skilled workers thereby creating employment opportunities for many lower wage earners who have found themselves dependent on public assistance. Win-Win!
Trump is beating the Chinese at their own game. Remember the professional political class who told us that Trump had no experience in international politics and would wind up allowing the Chinese to eat our lunch?
Not so much, eh?