Larry Kudlow: China's Rogue Actions and the US Response

China's Export Controls and Trade Violations

• 🇨🇳 China has gone rogue by imposing export controls on rare earths and other commodities globally.
• 💔 This action is seen as a violation of previously struck trade deals, including the Phase 1 trade agreement signed in January 2020.
• 📉 The speaker suggests China's economy is in worse shape, making them more vulnerable to US actions.

International Reactions and US Policy

• 😠 Allies such as Australia, Japan, and the EU are reportedly furious with China's actions.
• 💰 Former President Trump is poised to implement significant tariffs if China does not relent.
• 🇺🇸 The US is urged to 'punch back' against China's trade practices.

Geopolitical and Economic Strategies

• 🕊️ China's rogue behavior might stem from perceived defeats in the Middle East with Trump's peace deals and the weakening of China-backed Iran.
• 🇷🇺 China is also seen as backing the wrong side in the Russia-Ukraine conflict.
• 🛢️ There's a proposal for a 500% tariff on Chinese purchases of Russian oil, though 100% is deemed sufficient.

The Dollar and BRICS Alliance

• 📉 China and its BRICS allies have been reducing their holdings of US Treasury bonds, aiming to diminish the US dollar's reserve currency status.
• 🚫 Trump's stance against BRICS is highlighted, with nations reportedly withdrawing from the alliance due to potential tariffs.
• 🤝 A meeting between President Xi and President Trump at the APEC conference is suggested as a path to de-escalate trade tensions and promote prosperity.
• 😤 If China continues its 'petulant' behavior, Donald Trump is expected to maintain a tough stance.