President Trump’s rhetoric about China has tended to run faster than his actions – until now.
Why it matters: Even at the height of Trump’s trade war, his administration has never hit China so hard, so hard, and on so many fronts as it is now.
- Thursday night, Trump escalated his campaign to dismantle the Chinese and American tech worlds with executive orders threatening to ban both TikTok and massive global messaging app WeChat.
- On Friday, the Treasury Department sanctioned Carrie Lam, Hong Kong’s Beijing support leader for “implementing Beijing’s policy of repression of freedom and democratic processes.”
- That movement follows sanctions on the Xinjiang Production and Construction Corps, a powerful paramilitary organization, for its role in the mass detention of ethnic minorities.
- The US has the consulate of China closed in Houston, stepped up its efforts to keep Chinese telecom giant Huawei out of the 5G networks of allies, and even warned blue-chip U.S. companies that they could face legal fines for carrying out Beijing’s offerings.
- Health Secretary Alex Azar will gau have become the highest-ranking U.S. official to visit Taiwan in four decades, in a signal of support for the self-governing island that Beijing has endured.
Between the lines: In some cases, Trump has reacted to China’s actions – particularly the draconian security law for Hong Kong. But there may be more to the sudden offensive.
- Politics: Trump betting on an expensive-on-China push will resonate with voters in an election year, and his advisers – including trade adviser Peter Navarro, on our Pro Rata podcast – often refer to polls suggesting he is right.
- Trade: Trump has admitted that his desire to secure a trade deal with China has caused him to pull punches in the past, including over the mass arrests in Xinjiang. Trade talks are now on ice, perhaps permanently.
- The market: Thanks to the $ 2 trillion CARES Act and the Federal Reserve’s commitment to do “what it takes” to support markets, investors have largely ignored trading warheads and continued to offer stock prices higher.
The finish line: It feels like we’ve seen a decade of hawkish policies that have been proposed or implemented in recent weeks, notes Axios China Reporter Bethany Allen-Ebrahmian.
- Many of these steps have important implications, and not just for China.
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