President Donald Trump just forced China into its most vulnerable position in decades.
Trump wrapped up a weeklong trip to Asia and, after years of tension and economic warfare, negotiated a sweeping deal with Beijing. Victor Davis Hanson breaks down the specifics of the deal—including China’s promise to stop the flow of fentanyl to Mexico—how this breakthrough happened, and what this means for the future of U.S.-China relations on today’s episode of “Victor Davis Hanson: In a Few Words.”
“ [China] sized up the domestic renaissance here at home—low inflation, basically 3% or below, 3%, probably, at the end of the year of GDP, stock market record levels, vast new investments—and they said: You know what? The United States is back. And the foreign—the atmosphere is very different.
“Neutrals will probably join them. And their friends are emboldened. So, they've got new alliances. NATO is stronger than it's ever been. So, you add all of that up and the Chinese said to themselves the following: I think it's time to cut a deal. Not that we're gonna give up on trying to erode and subvert the United States.”
(0:00) Trump and Xi's Deal(0:46) Why Now?(3:24) The Left's Weakness(6:39) U.S. Domestic Renaissance(8:50) China's Calculated Pause(9:54) The Future of US-China Relations
Donald Trump and Xi Jinping, the leader of China, have had a trade deal, a diplomatic deal,
a very multifaceted deal. The left is already criticizing Trump by saying that he came down
on tariffs. I think that's nonsense. China will probably have the highest tariffs still leveled
on it, somewhere between 37 and 47 percent. The biggest deal was that they promised to stop
sending raw fentanyl to Mexico and laundering Mexican money from the cartels. That's very
important. If we can get that death toll down, it would be a stunning achievement. In some ways,
Donald Trump, if he could stop the 70,000 deaths per year, 600,000 since China started this,
he would save more lives than anybody in American history. So the question is,
why is China now starting to steal? Hello, this is Victor Davis Hanson for The Daily Signal.
There's been a big news story coming out that Donald Trump and Xi Jinping, the leader of China,
have had a trade deal, a diplomatic deal, a very multifaceted deal. The left is already
criticizing Trump by saying that he came down on tariffs, or he didn't get as many soybean sales.
I think that's nonsense. China will probably have the highest tariffs still leveled on it,
between 37 and 47 percent that it's ever had with the United States.
More importantly, they are going to lift their restrictions on rare earth mineral sales. We
needed that, but that's going to be irrelevant in five or six years, because whether we're opening
domestic mines here in the West, or whether Australia is opening them, the West is going to
make that irrelevant very quickly. We just need a short-term pause.
The biggest deal was that they promised to stop sending raw fentanyl to Mexico and laundering
Mexican money from the cartels. That's very important if we can enforce it, because
there have been more people killed since we started counting fentanyl deaths in the United
States, some 600,000, than in all of our foreign wars combined. Almost as many people were killed
from fentanyl that were killed in the Civil War. China was directly responsible for that.
If they can stop sending these cartels fentanyl, which they then manufacture into pills or other
drugs that look like prescription drugs, or they hide the lethality of the fentanyl product,
and we can get that death toll down, it would be a stunning achievement. In some ways, Donald Trump,
if he could stop the 70,000 deaths per year, 600,000 since China started this, he would have
saved more lives than anybody in American history. The question is, why is China now
starting to deal? I think their paradigm, which they had before, that a weak president like
Barack Obama or Joe Biden on the one hand, or a naive Republican president or candidate like
Romney, McCain, and maybe the Bushes, the latter felt that if you opened China up, you had joint
partnerships, you didn't worry about trade imbalances or Chinese mercantilism, everybody
would get affluent, and they would become democratized, and China would be a liberal
democracy. That's not going to happen. They use that money affluence to build up their military,
to oppress dissent, and to tighten down on their war against us and the West in general.
The left, of course, projected weakness. They didn't want to negotiate with Biden.
Why negotiate with him when you can take him to the cleaners? They knew that if Donald Trump
had been president, he would have shot that balloon that traversed the length of the United
States on day one. He knows that if Marco Rubio had gone to Alaska and was dressed down by the
Chinese, he would have screamed back at them and walked out, not like the Biden diplomatic team
that took a beating in Anchorage, Alaska, the second month of their tenure in 2021.
The left had projected weakness after the Ukraine war, the Middle East war, the Kabul
skedaddle, etc. Then the Chinese said to themselves, is our paradigm working? We talk about
green energy, Paris Peace Accord, and these stupid Westerners. They invest in the subsidized,
inefficient, expensive wind and solar where we build coal and oil and nuclear plants.
This is a great thing. All of a sudden they think, uh-oh, this crazy, unpredictable, dangerous,
volatile Trump is stopping that, and now he's going to make efficient energy the way we do.
Then they thought, well, it's good to have open borders. We'll send some of our citizens across
you. You and the United States are becoming like a drug-ridden, borderless, illegal migration,
vast numbers of illegal aliens, socialist economy like Europe, and we can handle Europe easily.
Now all of a sudden the border is closed. We're deporting illegal aliens. We're going after the
cartels. China says, wow, this is unnerving. Then more importantly, we're getting rid of DEI.
China loved DEI. They used their propaganda to promote that at any cost. They saw that as the
same as their own ideological era when Mao used DEI, ideology instead of meritocracy, and ruined
the economy. They said to themselves, we don't want to do that. Even though they're ideological
themselves, they felt they have less ideological constraints than they did under Mao, and they
wish that we had more even of these race, gender, sexual orientation, DEI, and now they see it going.
So when they look at the United States and they say, wow, they're meeting their military
recruitment, they're producing the greatest amount of nuclear, coal, oil, and natural gas energy in
history of the world. Their military has all of these sophisticated technologies. Silicon Valley
is no longer hate Trump left wing. They've got people like David Sachs or even Mark Zuckerberg
and Jeff Bezos. They're all now on the team, and they're all free to innovate and invest,
and now he's got $15 trillion, supposedly a foreign investment coming into the United States.
We can't bully Japan, South Korea, Australia, the Philippines, Taiwan anymore because we don't know
what Trump will do. And now they think Trump will protect them, and they're rearming at a fanatical
rate, Japan especially. How did this happen? When we look over to our clients, we lost our foothold
in Iran. Iran, Hamas, Hezbollah, they may come back, but they're neutered. And Russia, we're
giving stuff to Russia, but Russia is tied down. They've lost their toehold in the Middle East,
the Hassad kleptocracy is gone. And they've lost a million people. We've been on the wrong side,
and now maybe Putin might be in political trouble. Now we buy oil, the Chinese say,
as does India, but now there might be a secondary boycott. So what I'm getting at is they
sized up the domestic renaissance here at home, low inflation, basically three or below percent,
three percent probably at the end of the year of GDP, stock market record levels,
vast new investments. And they said, you know what, the United States is back, and the atmosphere is
very different. Neutrals will probably join them, and their friends are emboldened. So they've got
new alliances. NATO is stronger than it's ever been. So you add all of that up, and the Chinese
said to themselves the following, I think it's time to cut a deal. Not that we're going to give
up on trying to erode and subvert the United States. That's our long-term goal, is to make its
foreign presence analogous to the British Empire around 1955, just to shatter their Belt and Road
and all these other initiatives from the Panama Canal to the Spratly Islands, from Dianne Feinstein's
chauffeur to Eric Swalwell's inter. We're going to try to subvert it. But for right now,
the next three years, we're going to pause and try to cut a deal because we're losing with this guy.
In seven years, in three years, seven years, 11 years, maybe we'll get another Biden or Obama,
or maybe we'll get somebody in the right who believes that they can
send all of the corporations and all of their technology and invest in China.
But for right now, it's wiser to cut a deal. And Trump is basically saying to China, then,
we're back, and you're not going to win. Not yet. Not yet. Thank you very much. This is
Victor Davis Hanson for The Daily Signal. Thank you for tuning in to The Daily Signal.
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