In a clear signal toward the trade conflict with the United States, Chinese Chairman Xi Jinping is preparing his nation for a protracted trade conflict. Chinese state-run media have been deploying propaganda to shift public opinion toward the U.S. as a direct threat, and the latest developments by Xi showcase that agenda.

(South China Post) Chinese President Xi Jinping has called for the nation to embark on a new Long March and “start all over again”, in the most dramatic sign to date that Beijing has given up hope of reaching a trade deal with the United States in the near term. Xi is in Jiangxi province for his first domestic tour since the escalation of the trade war two weeks ago. Jiangxi is where China’s defeated Red Army started its fabled Long March in 1934, and Xi’s choice of destination is being viewed as an effort to invoke a spirit of endurance and to rally public spirit amid rising tensions with Washington.

“We are here at the starting point of the Long March to remember the time when the Red Army began its journey,” Xi told cheering crowds on Monday, in footage posted on state broadcaster CCTV’s website on Tuesday. “We are now embarking on a new Long March, and we must start all over again.” While Xi did not directly mention the trade war or the United States, his remarks are being perceived as clear signals that the Chinese public is being told to prepare for hardships because of the worsening external environment. (read more)

It always appeared that President Trump was fully prepared for this outcome. In hindsight it looks even more obvious how President Trump engaged with China while fully expecting to end-up with a direct and adversarial outcome.

As recently explained to Fox News host Steve Hilton, President Trump is in no hurry to continue conciliatory trade discussions because he has mentally moved into the punishment phase of his geopolitical reset.

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The confrontation between China’s communist controlled economy and the U.S. free market system is the most significant geopolitical event since the collapse of the Soviet Union. The consequences from this reset are far reaching, and extend beyond the tens of trillions of dollars within the combined economies.

The entire system of global trade and supply-chain economics has entered a state of flux.

Within this dynamic there are opportunities for national economies to benefit if they position themselves within a nationalistic free-trade alliance being assembled by President Trump, Secretary Mnuchin, Secretary Ross and USTR Lighthizer. However, to benefit the political leaders of those nations will have to adjust their outlook.

There are indications within recent political shifts, Poland, Hungary, Italy, Brazil, and Australia as examples, that inherently many nations are aware how global multinational systems -and political leadership- were/are aligned to benefit an elitist few at the expense of the larger population. The visible signs of populist backlash are extensive.

Dr. Michael Pillsbury appears on Fox Business with Lou Dobbs to discuss the current dynamic. Great Watch:

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