A friend of mine moved to China a couple of years ago. He’s an amazing martial artist and is in the Martial Arts Hall of Fame. He moved to China to teach Hapkido, which should tell a lot about his expertise.
He and I keep in touch, and I’m planning on visiting him while he’s there teaching. But his latest report I found fascinating and thus I’m sharing it.
I now have been back in China for two years. I will be here for another two years, at least until October of 2020. After that I return to Florida.
I want to give you some updated news from inside China.
First, The Donald is winning the trade war…BIG TIME. As you know, I have been visiting or living in China for over 25 years. And based on that extensive knowledge, I can see the effects on the economy.
For example, Chinese New Year just ended. Normally it lasts at most 2 to 3 weeks tops. Because everybody must return to work. However, this New Year started the last week of January, but it continues as the whole month of February everything has been shut down. There are NO FACTORY ORDERS. Layoffs!!
Also the Chinese Government has just revised the requirement for a WOFE, an acronym for a Wholly-Owned Foreign Enterprise. The gist of the WOFE makes it easier for companies outside of China to set up shop inside China.
On that point, remember when President Trump announced that America is open for business? Obviously, companies took him up on it.
This article suggest 7 companies who kept their manufacturing in America. However, the real proof lies in the 500,000+ manufacturing jobs in the recent tally.
The Economist wrote of Trump’s prowess, saying the growth “defies expectations”:
In 2018 it looks as though the president is winning the day. Industrial output is on a tear, and the last few months have seen the best run for growth in manufacturing jobs since the late 1990s. After spending about two decades on a steady march downwards, manufacturing’s share of the labour market appears to have all but stopped falling.
Here is what CNBC reported from Aug of 2018:
The U.S. government reported that the manufacturing sector added 37,000 jobs during July, pushing the industry to the best annual job gain in more than 20 years.
Over the past year through July, U.S. manufacturing added 327,000 jobs, the most of any 12-month period since April 1995.
The sector received a boost from President Donald Trump’s corporate tax cut and a lift in overall economic activity.
All this comes at a price to the Chinese regime. They were never challenged, and planned for continued growth. Then they lost their best customer.
My friend continues,
The Chinese are shooting themselves in the foot. Previous policies allowed them to ravage the world, not just America. But that came with a price. The void in leadership [under Obama] gave them a false sense of bravado. So, they never learned how to market. They bought their way into markets, because there was no competition. Until now.
My prediction for China is a BIG Recession coming soon. And when that recession hits, they won’t know what to do. For the most part, China has never had a recession since the new government came to power.
You might be surprised to learn that most of the foreign companies are getting out of China; heading to Vietnam and Thailand.
I know stateside you hear a lot about the Chinese military. Well, it’s a joke.
I did a martial arts class for 5000 18-year-old men going into the military. Truthfully, I would put one of our Marines up against 25 of these brats. Most of them can’t even do 10 push-ups.
This generation is comprised of mostly one-child, “all-about-me brats”. They have had everything handed to them. Truthfully, most are very stupid. That’s why their parents are so desperate to send their kids to America for schooling.
Hard to believe, but the Chinese education system is broken on the Mainland. However, Hong Kong is a different story. Tens of thousands of kids cross the border to go to school in Hong Kong.
Funny point: the Chinese can’t swim. And I suspect their Navy personnel can’t either. It’s laughable.
So, let your listeners know that if we got into a war with China it would be over in weeks. They are a paper tiger with no teeth.
He let me know that the last meeting of the Martial Arts Hall of Fame will convene in 2020. Then added the footnote.
Also, most of the Chinese I talk to privately don’t like their government. But they are afraid to talk about with all of the cameras and listening devices. Big Brother here in China is real. I promise you we do not want them to be the world’s leader.
President Trump reversed the trajectory of America and many other nations. They will now need to become much more competitive to compete with us. As for the imminent economic problems in China that my friend predicts, in a strange way, President Trump may lead China to a more open policy. That policy will undoubtedly benefit China’s citizens.