U.S. President Trump is holding massive steel and aluminum tariffs as an economic sword of Damocles over the head of Beijing during ongoing trade negotiations. Chairman Xi sought to increase his own leverage by pulling North Korea’s Chairman Kim Jong-un away from bilateral peace and denuclearization talks. However, POTUS Trump responded to the Beijing power-play by announcing a Section 232 trade review over the entire auto-industry; and then bolstered his counter-move by cancelling talks with Kim Jong-un.
This is a battle, a massive economic battle, between U.S. President Trump and Chinese Chairman Xi. Period.
Red Dragon didn’t expect President Trump to respond so effectively to the customary schemes notoriously famous in any Chinese negotiation encounter. I really believe Chairman Xi underestimates how adept POTUS Trump is at cutting through the obfuscation and obtuse moves.
President Trump simply doesn’t operate in the land of traditional diplomatic discomfort… he doesn’t have any inclination to play these insufferable games.
Within minutes of President Trump withdrawing from the June 12th summit, Beijing realized all of their trade leverage was just wiped out. Playing deceptive panda isn’t going to work this time.