In the economic balancing act toward China Larry Kudlow represents the good cop, Peter Navarro represents the bad cop and President Trump navigates the market responses. Neither person is factually in conflict with the other; the nuance is in the expression and each person has a role to play. Sometimes teeth, sometimes not. It depends on need.
Last night trade advisor Peter Navarro noted the U.S. position with China and trade is still in a state of serious conflict. This is accurate, and a more confrontational posture has been expressed by President Trump. Today Larry Kudlow moderates the Navarro position to lessen the Wall St. concern over a looming decoupling. It’s all a dance.
The need for nuance becomes clear as we watch Stuart Varney pushing the Wall Street concern angle on behalf of U.S. multinationals. The administration does not want to spook the stock market while they deal with a China confrontation. WATCH:
Kudlow represents the panda mask. Navarro represents the eagles claw. President Trump advances or retracts each position as he controls the market response. The objective is a slow, steady, smiling decoupling that doesn’t unnerve anyone… but the direction is always toward the decoupling.
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President Trump is delivering the proverbial economic death by a thousand paper cuts.
Because China sees their strategic panda mask approach being used against their own interests; and because Beijing now sees their economy contracting due to the long-term strategy being deployed by President Trump; China is getting a little more desperate:BEIJING/HONG KONG (Reuters) – The Chinese government’s top diplomat Wang Yi on Tuesday proposed a “fast track” arrangement for the movement of people and goods with India and Russia.Ministers from China, Russia and India should together discuss trade, energy, transport, education and health, Wang said in a statement on the foreign ministry’s website. (link)
President Trump smiling while slowly and methodically cutting down the economy of China and simultaneously holding them to account for prior purchase agreements. This relentless approach has to be making Beijing quite angry.
The Chinese saying: “if you plant your trees in another man’s orchard don’t be surprised when you pay for your own apples”, is very appropriate for these times. However, China has always been the one charging…. they did not expect to be the one paying.
Sad panda.
