If you think President Donald Trump is shaking the world economy – believe me – you ain’t seen nothing yet.
The White House is set to hit the Chinese Communist regime with a double whammy that will turn global commerce on its head.
On Wednesday, the Senate confirmed Wall Street consultant Paul Atkins to lead the Securities and Exchange Commission – the agency responsible for regulating the financial markets.
And there is good reason to believe that Atkins may finally demand that Chinese-controlled companies on the US stock exchanges stop stealing intellectual property, ignoring financial standards and unfairly driving companies out of business – or else.
In addition to Trump’s escalating tariff war against China – on Friday, Beijing ratcheted up its levies on US goods to 125 percent after the White House slapped Chinese goods with a minimum 145 percent rate – Chinese companies may soon find themselves facing the threat of being kicked off the US stock exchange.
Make no mistake: this is the most important news of the week!
Shutting Chinese companies out of America’s exchanges would cut them off from their ability to raise capital in the largest markets on Earth.
Shortly after Atkins’ confirmation on Wednesday, Florida Senator Rick Scott tweeted out a letter that he sent to the SEC commissioner, with the following caption: ‘Mr. Atkins fully committed to me that he will do everything he can to enforce the law, which means delisting Communist Chinese companies who refuse to comply with our laws to protect the security of our financial markets. I look forward to working together to do so.’
If you think President Donald Trump is shaking the world economy – believe me – you ain’t seen nothing yet. The White House is set to hit the Chinese Communist regime with a double whammy that will turn global commerce on its head. (Pictured: Kevin O'Leary).
On Friday, Beijing ratcheted up its levies on US goods to 125 percent after the White House slapped Chinese goods with a minimum 145 percent rate. (Pictured: Chinese President Xi Jinping).
Between these financial regulatory developments and tariffs, this White House is trying to do what multiple administrations across Europe and in the United States have failed at for decades – hold China to account.
And that starts with forcing them to abide by the rules of the World Trade Organization, which China joined in 2001.
For decades now, China has abused the membership that allowed them access to the modern trading system by stealing intellectual property from both Europe and the United States and then using it to advance their economy.
A reality for many American entrepreneurs and investors who make consumer goods is that, once they hit $5 million in sales in the US domestic market, their product is copied by a Chinese manufacturer who starts selling it for 30 to 40 percent off.
That is devastating to American small businesses.
Of course, they can’t compete with Chinese companies who don’t pay to develop products, outright steal the designs and produce it at a lower cost (often with underpaid and/or mistreated workers).
China’s behavior is illegal under the terms of the WTO. But for Chinese companies there are no consequences, because China – again, in violation of WTO rules – does not allow foreigners access to their legal system.
In contrast, if an American company steals from a Chinese company, the Chinese can sue in American courts.
That’s grossly unfair – and it’s been hurting America and the world for decades!
But to China, the more they cheated, the more they stole, the more they sold, the wealthier they became – until now. Trump is now forcing China’s President Xi Jinping – through both tariffs and SEC threats – to sort out these issues.
Unfortunately, many Americans are not being told about any of this.
Instead, they’re being drowned in the latest ranting and ravings broadcast on certain cable news outlets or from self-interested politicians hyperventilating over the latest market volatility.
But I’ve seen it before... I’ll say it again: Ignore the ‘noise.’ Pay attention to the ‘signal.’
The ‘signal’ Trump is sending is that he is trying to negotiate zero percent tariffs with the world and force China into modern world order.
Trump is now forcing Jinping – through both tariffs and SEC threats – to sort out these issues.
The ‘signal’ Trump is sending is that he is trying to negotiate zero percent tariffs with the world and force China into modern world order.
As an investor, I’d like to see the beginnings of a new trade agreement between Eastern Europe, Canada and Mexico within the next six months.
That would create a behemoth new free trade economy invested in the promotion of freedom, law and order and democracy. And I have greater confidence that we’re heading in that direction.
I was in Washington, D.C., on Wednesday to testify before The House Select Committee on the Chinese Communist Party to share these same thoughts on Chinese exploiting of American businesses and markets.
I have never seen such massive traffic jams or security lines packed full of people waiting to get into various government buildings.
Everybody from everywhere is in D.C. There must be thousands of foreign delegates from all over the world.
The only nation not represented is... China.
But if they're going to come to the negotiating table, they're going to have to start playing by the rules.
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