Just like the US in 2008, a perfect storm is building in China. The excessive and extravagant construction projects, cash-flow challenges and lack of demand in China all could combine for a major financial disaster. Trump is right – now is the time to make a deal with China.

Over the past few decades, China opened its borders and corporations around the world fled to China due to its cheap capital and meager payroll costs. As a result, China’s economy exploded. Again, from Falling Eagle, Rising Tigers –

While the US is moving more and more towards a welfare state, China is moving more and more towards prosperity. “Since the launch of economic reform in 1978 more people (in China) have been made materially better off in a shorter span of time than ever before in human history.” China’s rise out of poverty has been dramatic. For example, considering a consumption threshold of $1 a day using the 1993 Power Purchasing Parities (PPP), the World Bank tracked a reduction of poverty from 652 million Chinese people in 1981 to 135 million in 2004. China’s anti-poverty performance is even remarkable with a standard of $1.25 a day at 2005 PPP. “The numbers in poverty by this measure dropped from 848 million in 1981 to 351 million in 2004. This denotes that there were 517 ($1 standard) or 497 million ($1.25 standard) people who had escaped from absolute poverty during 1981-2004.” A half a billion Chinese citizens have risen out of poverty due to China’s changing policies!

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The Chinese were relentless in their efforts to obtain Western technology and grow their economy. They set up trade barriers and manipulated their currency in ways that helped China. The US was at a disadvantage in trade resulting in massive deficits in the billions.

Along comes the Trump Administration, the first administration to address China’s unfair trade advantage. These efforts by the Trump team to bring China to the table to address trade inequalities involving the US may result in slowing down the China economy. The timing of these barriers is not good for China as there are more pressing issues that must be addressed. President Trump is a shrewd negotiator and he obviously believes now is the time to encourage China to make changes to their trade barriers with the US. China may have no choice but to go with what the US offers to keep its economy afloat.

China’s financial crash may make the 2008 crash in the US look small. The implications will no doubt impact the entire world. This is why China can’t afford to mess around with President Trump and must put together a treaty as soon as possible.

Which brings us to today.

The SinoInsider released a report on Thursday warning the Chinese Communist Party could use conventional and “unrestricted warfare” strategies and tactics against the United States.

The Chinese government is facing an enormous amount of pressure growing pressures including: a rapidly deteriorating economy; a food crisis brought about by corruption, disease (swine fever, bird flu, etc.), and pests (fall armyworm) and increasing social unrest across China.

The US trade war with China is compounding the current challenges.

SinoInsider lists a number of “conventional and “unrestricted warfare” strategies and tactics which the CCP could use to pull off a “Pearl Harbor” against the U.S. and survive the “new cold war.””

1. The CCP could seek to disrupt U.S. financial markets CCP propaganda recently began making comparisons between the Chinese and U.S. stock markets. The propaganda asserts that there are higher risks in the U.S. market and claims that the Chinese market is more “resilient” under CCP authoritarian rule.

Veteran Chinese officials and scholars have recently been talking about how the trade war could cause a “global financial crisis” and the problems with America’s financial markets.[1]

The CCP could tap into its Red Matrix to weaken investor expectations and confidence in the U.S. markets and economy.

Chinese companies listed overseas and China’s sovereign wealth fund could find ways to trigger stock market panic around the time when new U.S. tariffs are imposed in June. Pro-PRC elements on Wall Street could even cooperate with the CCP to profit from the financial disruption.

Should it succeed in triggering a U.S. stock market crash, the CCP could rollout a gold-backed currency to replace the dollar in the global financial system and win the “currency war” with America. 2. The CCP could seek to influence and interfere in U.S. politics and society The CCP would almost certainly focus its influence and interference operations to take down the Trump administration, turn President Trump’s attention away from the China issue, and shape the 2020 U.S. presidential election.

To undermine the Trump administration, the CCP could find ways to influence politicians in both major parties to disrupt governance or Trump’s policies. For instance, the CCP would like for Trump’s trade and tariff authority to be restricted, see impeachment proceedings started against him, and to see his domestic initiatives (infrastructure, healthcare, etc.) stalled until after the 2020 U.S. presidential election.

To turn Trump’s attention away from China, the CCP could tap into its Red Matrix to accuse the Trump administration of “racism” and wanting a “clash of civilizations” while emphasizing the threat of other “bad actor” countries (Russia, Iran, etc.) over China.

To shape the 2020 U.S. presidential election, the CCP could find ways to back other candidates while producing or supporting the production of anti-Trump propaganda.

To divide American society, the CCP could try to play up the “clash of civilizations” issue and accuse the Trump administration of “xenophobia.” 3. The CCP could engineer foreign crises to divert America’s attention away from China The PRC could strengthen relations with Russia and encourage Russia to become more antagonistic towards America.

The PRC could find ways to provoke military confrontation between Iran and the United States.

The PRC could encourage North Korea to play hardball on denuclearization with America, including stepping up missile testing.

The PRC could secretly support the Maduro regime in Venezuela and impede the country’s shift away from rule by dictatorship. 4. The CCP could avoid U.S. containment by fracturing alliances and partnerships The PRC could step up efforts to win over Europe while driving a wedge between America and its European allies.

The PRC could try to convince countries in the Indo-Pacific to “fight against U.S. hegemony” or keep playing both sides (U.S. and China). This would prevent Indo-Pacific countries from cooperating with the U.S. to counter the PRC threat.

The Chinese Communist Party is currently facing enormous pressures. The CCP may deploy unthinkable counter measures in their trade war with the US. Do not be surprised if the Chinese use diabolical measures to gain an upper hand against the United States and Trump administration.