Investors May Be Laughing At China’s “People’s War” Now, But Here Is Why They Won’t Be Laughing For Long… – Michael Snyder
Wall Street is still treating this crisis as a temporary trade dispute, but the Chinese see things completely differently. At this point, the narrative in China is that the U.S. has deeply insulted their national honor, and every angry statement from U.S. officials is just digging the knife in a little bit deeper. The Chinese began their retaliation to Trump’s new tariffs with some new tariffs of their own, but they won’t be stopping there. As I stated yesterday, China literally has hundreds of different ways that they can hurt us, and the longer this crisis goes the more likely it is that they will utilize all of those weapons.
And we got a hint of what might be coming on Tuesday. An editorial published in government-run media outlets boldly proclaimed that the conflict between the United States and China was now a “people’s war”…
In a series of opinion pieces and on-air editorials, the country’s government-controlled media used strong and nationalistic language to reassure a shaky domestic audience that China’s economy can weather the higher tariffs imposed last Friday by US President Donald Trump.
One strongly worded editorial published by both the Xinhua News Agency and the People’s Daily, the Communist Party mouthpiece, said that while the US was fighting for “greed and arrogance,” China fought to defend “its legitimate rights and interests.”
“The trade war in the United States is the creation of one person and his administration who have swept along the entire population of the country. Whereas the entire country and all the people of China are being threatened. For us, this is a real ‘people’s war,’” the editorial said.
And similar sentiments were expressed on state-owned television during a prime time broadcast…
During a prime time broadcast on Monday, CNN reported that the state broadcaster CCTV also aired a statement saying that China would “fight for a new world.”
“As President Xi Jinping pointed out, the Chinese economy is a sea, not a small pond,” anchor Kang Hui said on his 7 p.m. news show. “A rainstorm can destroy a small pond, but it cannot harm the sea. After numerous storms, the sea is still there.” Hui concluded echoing a popular refrain, that “China…doesn’t want to fight, but it is not afraid to fight.”
Amazingly, U.S. stocks actually went up on Tuesday following these remarks. Apparently investors think that China’s new “people’s war” is pretty funny.