Hello John and Doves,
I wasn't aware that it
was this bad in China.
This Youtube channel,
Business Basics, is reporting riots across China. The
CCP is being blamed for the economic problems.
Gordon Chang said that
he doesn't believe the CCP can sustain their position for
much longer. The U.S. tariff war could collapse the Chinese
regime. Unless Xi decides to export more.
China's economy may not be growing at all. This is
China's '2008'. They over stimulated their economy and
added on the debt and that debt is just too heavy.
The Chinese mortgage
crisis has worsened since the tariff war.
China has been having
'democracy' protests. The people want political reform
not a political party with unchecked power.
Notes from a protester's
social media account on the video:
Chinese youth are
calling out Xi directly on social media. The common
people see themselves as the 'sufferers' of the tariff war
with the U.S. Young people can't find jobs.
After they graduate they are unemployed. "Internet
layoffs, factory closures, small businesses closing down but
the CCP isn't thinking about how to save the economy.
Instead, they keep cracking down on private businesses while
fighting with the U.S. in the tariff war. They claim
it's to protect national interests...The U.S. raises
tariffs, and China immediately retaliates. It may look
like a back-and-forth but the real cost is being paid by us,
the common people. Factory orders are gone, foreign
trade is in chaos, workers are laid off and bosses are
running away. There's no protection for people's
livelihoods. The CCP always says it doesn't start
trouble, but isn't it causing trouble now?" (end notes on
protester's comments)
China's economy
is unsustainable even before the tariff wars.
It started with the mortgage crisis "that has been the bane
of its existence." The people are angry that the CCP
has destroyed their future. Protesters have been
protesting against unfinished building projects. They
demand their property rights. This has been going on
for two decades....and it's been getting worse. The
Chinese people put their savings into real estate. In
China this was one of the only things the people could
invest in. The big companies in China are owned by the
CCP. The people can't take part in the positive
investments these companies bring in. So they invest
in real estate. Everyone wanted a second or third
home. Real estate is directly related to your social
status in society. Once people saw that real estate
prices were only going up, they started investing in
houses/apartments - there was a huge rush to buy houses -
there was such a big push that people were buying houses
before they were even built. The supply increased
drastically to meet the demand. Then houses/apartments
just sat there empty. Some 70% of people's wealth is
in real estate. Not much diversity.
Evergrande Group was
China's largest real estate company in all of Asia.
Some of the company's practices were not
'appropriate'. People bought houses before
construction even began. The company would lease the
land from the local government because in China you can't
buy land. Then the company would sell houses that were
suppose to be built on that land and receive full payment
for the houses before even breaking ground. Demand was
so high. People would take out mortgages to buy a
second house. The company used the money to lease more
land. And on and on. Evergrande thought this
scheme would go on forever. They soon ran out of
people to invest in the scheme. Local government was
benefiting and making a lot of money from developers, like
Evergrande, by leasing out land. The more risks the
real estate companies took on, the higher the bids on the
land the government was leasing out. Around 50% of
local government revenues was coming from leasing out
land. The same government that should have been
protecting people from risky practices was directly
benefiting heavily from these risky practices. This is
one of the main reasons China's real estate market got so
big. Regulators were slow to step in. Then the
CCP finally stepped in but millions of houses were sold with
no money to actually build the houses. This has led to
the current protests.
The protesters see the
CCP as the cause of this. They are blaming all of
these problems on the CCP. The CCP's evil dealings
will spark public retaliation. Xi banned Chinese
airlines from buying Boeing planes, yet he flies in a Boeing
plane. Xi wants these Chinese airlines to buy Chinese
made airplanes which do not have a very good reputation. The
people see what the CCP is doing.
So there are some of
China's wows...and here are some of our possibly coming
wows;
According to WHO the
"trade between the United States and China could decline by
as much as 80 percent."
Unfortunately, many U.S.
manufacturers and companies rely on Chinese parts and goods.
"President Donald
Trump's trade war policies are expected to bring about a 35%
decline in cargo at the Port of Los Angeles next week as
"essentially all shipments out of China for major
retailers and manufacturers have ceased,"
according to Port of Los Angeles Executive Director Gene
Seroka." U.S. retailers and manuafacturers
"typically put in orders to factories in Asia around three
to four months in advance of shipments."
U.S. exporters are
"getting hit hard" by retaliatory tariffs...the sectors
include agriculture, heavy-duty manufacturing and
information technology services." Major
retailers have told Seroka "that they have about a six -
to eight week supply of inventory but that "will quickly
dry up".
For the week of April 27
to May 3, scheduled vessels for the week are down 31%.
For the next week, they are down 35%. "It
takes about 20 to 40 days for container ships to sail to
the U.S. from China...container ships coming to U.S. ports
could come to a stop by mid-May. It takes
goods about 1 to 10 days to travel from the port to cities
via trucks or rail. Apollo Global Management is
predicting that by late May "domestic freight will "come to
a halt" and there will be "empty shelves" forcing retailers
and others to deal with lower sales. By early
June..there will be layoffs in the domestic freight and
retail industries with a recession hitting the U.S. this
summer." Walmart and Target expect a drop in import
cargo to be at least 20% in the second half of 2025.
Port
Of Los Angeles Warns 'Difficult Decisions' Ahead As
Shipments From China Cease
China is definitely
America's factory. We all saw what happened when Covid
hit. The U.S. was ill prepared for any kind of
decrease in flow of goods from China. We are so
dependent on that country it's scary. The U.S. started
declining in its own manufacturing when Clinton was in
office...and it's been down hill from there with all kinds
of great trade deals for China and nothing for the U.S.
It's going to take some
pain to turn this around. And make the tariffs
equitable to both sides. And return manufacturing to
the U.S.
Gordon Chang is an
expert in 'all things Chinese'.
"Something is "very,
very wrong" in Beijing right now, according to foreign
policy expert Gordon Chang, who is signaling more
"end-of-regime" coming out of Xi Jinping's China."
"At a time when China
needs friends because it's not selling goods to the U.S.; it
is going out of its way to antagonize not just the
Philippines, not just Taiwan, but also South Korea and
Australia, " said Chang on "Mornings with Maria." Xi
can't be seen as giving in to Trump.
"Beijing has publicly
denied any ongoing negotiations with the Trump
administration to bring down America's 145% tariff and
China's 125% tariff. Xi has configured the Chinese
political system so that it is hostile. And also,
because he's been making the claim that China has surpassed
the U.S., he can't look dependent on trade with the U.S. and
he certainly can't look like he's talking to the U.S. under
pressure."
President Trump is
sticking to his plan - USA Today is reporting that
"President Trump is dismissing concerns that tariffs on
imported goods from China could raise consumer costs, saying
in an interview that "China probably will eat those
tariffs." Trump said we can't say that costs will
increase, because he believes China "will probably absorb
the tariff costs."
Trump said, "At 145%
they basically can't do much business with the United
States."
It looks like Xi has a
lot of pressing problems right now with his own
people. If he continues with the tariff war and
doesn't make a deal with the U.S., he'll have a country of
very angry and feed up people - Saying 'negotiate
already!" And with the massive real estate disaster
the CCP is in a terrible position with the people.
I remember reading years
ago, that if a government wants to unit their people, they
need to start a war. That gets the population focused
off their problem with their government and focused on an
"enemy".
And China has been planning
for war with their number one enemy, the U.S. for
decades. If the CCP is feeling threatened from inside
and outside...I see this is a big possibility.
And with everything else
going on...the world is ripe for the start of the
Tribulation period.
Pray for the peace of
Jerusalem!
Maranatha!
Chance