The media missed the latest news on China. And it’s not good, at least as far as Leftists in America are concerned.
America is winning!
As AP reports,
China’s factory activity contracted in July for a third month amid a tariff war with Washington and weak domestic demand.
A monthly index released Wednesday by an industry group, the China Federation of Logistics & Purchasing, stood at 49.7 on a 100-point scale. That was up 0.3 points from the previous month but still below the 50-point mark that shows activity contracting.
The data indicate China’s economic downturn was slowing, said a logistics federation statement. But it said the economy still faced “downward pressure.”
Chinese exporters have been hurt by President Donald Trump’s tariff hikes in a dispute over Beijing’s technology policies and trade surplus. Consumer demand also has weakened, hurt by uncertainty about China’s economic outlook.
China’s economic growth fell to 6.2% over a year ago in the quarter ending in June, its lowest level since 1993.
U.S. and Chinese trade negotiators met Wednesday but economists said an early breakthrough was unlikely.
The manufacturing decline “will continue in 2019 until the trade and technology negotiations make some progress,” said Iris Pang of ING in a report.
Chinese leaders have tried to shore up economic activity by pumping money into building highways and other public works. That has supported demand for construction materials but failed to reverse the overall downturn.
Exports of Chinese goods to the United States fell 7.8% in June from a year earlier. China’s global exports sank 1.3%.
I reported on this a while back. And my information came from two sources.
First, I have a friend who lives in China who gave me his observations on the ground. He said that many Chinese factories were idle. He said that far too many Chinese weren’t in their normal pattern of sleep and work.
Second, my pretend-parents have factories in China. They said that negotiations for their activities favored them for the first time in over a decade. They have factories begging for their business, each willing to undercut the other.
Sadly, the media doesn’t want Americans to know what common sense explains. When President Trump removed $250 billion from the Chinese economy, the Chicoms felt the impact.
The American economy continues to grow. And had it not been for Boeing’s issue with the 737-800s, the Trump economy would likely still be setting stock market records.
Fear not, for the bull market will continue…in America.
China won’t fare so well. That’s because they bet on the wrong strategy.
As AP reported:
U.S. and Chinese envoys held “constructive” trade talks on Wednesday, the White House said, after President Donald Trump rattled financial markets by accusing Beijing of trying to stall in hopes he will fail to win reelection in 2020.
The meeting, aimed at ending a tariff war over trade and technology, ended about 40 minutes ahead of schedule. Neither delegation spoke to reporters before U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin left for the airport.
But White House spokeswoman Stephanie Grisham said in a statement hours later that “the meetings were constructive,” and that talks are expected to resume in Washington in September, though exact dates were not announced.
According to the statement, the Chinese confirmed their commitment to President Donald Trump to buy more U.S. agricultural exports, something Trump had publicly been casting doubt on.
Economists had said quick breakthroughs were unlikely because the two governments face the same disagreements over China’s technology policy and trade surplus that caused talks to break down in May. Trump and President Xi Jinping agreed in June to resume negotiations but neither has given any sign of offering big concessions.
The dispute over U.S. complaints that Beijing steals or pressures companies to hand over technology has battered exporters on both sides and disrupted trade in goods from soybeans to medical equipment. Trump has raised tariffs on $250 billion worth of Chinese imports while Beijing responded by taxing $110 billion of U.S. products.
Trump’s economy is an undeniable success.
And as Newt Gingrich recently reminded us, strong economies win elections.
“If the economy stays good and the president stays focused, he’s going to win,” he remarked.
While making the prediction, Gingrich pointed to the Trump campaign’s increasing momentum, which he said: “is all predicated on just tremendous amounts of hard work.”
Our team weighed in:
Just last month, Trump broke another amazing economic record. It’s hard to believe one president could have so much success, but that’s only because we spent eight years taking the beat-down of a lifetime. And while Obama promised an economic recovery, Trump delivered.
It’s that simple. During the Obama administration, we lost jobs. Manufacturing packed up and headed overseas. ObamaCare strained small businesses to the breaking point. The stock market posted dismal numbers. In short, Obama put us in a depression darker than the Great Depression.
However, the morning after the election, stocks started to rise. The promise of a Trump White House put confidence back in the market. Manufacturing returned. Jobs came back. An as for the depression, Trump was the Prozac that put an end to it. Now, we can’t stop breaking records.