Welcome to “Ruler of the World” does Wonderland – to the sound of that hypnotic ‘Kashmir’ riff.

Two overarching taboos reign on the – now shattered – collective West:

1. Can’t define the Ukraine regime as Nazi.
2. Can’t condemn the psychopathological Israeli genocide in Gaza.

The taboos happen to be inextricably linked to the Forever Wars deployed non-stop by the Empire of Chaos/Zionist axis.

Lesser Hybrid Wars though – even carrying the horrifying prospect of turning nuclear – are allowed to come and go. Especially if they are part of the current war on BRICS, a sub-section of the war of factions of the West against the Global Majority.

So let’s go to Kashmir – to the sound of Jimmy Page’s hypnotic riff. Both India and Pakistan are escalating the war of decibels. Turkey is offering weapons – to Pakistan. Iran offered a mediator role: no takers.

The motive for the war is as dodgy as they come. An all-male tourist bus packing a bunch of merry tourists is roaming around Indian-held Kashmir. Passengers include a just married 26-year-old lieutenant of the Indian Navy – but without his wife (what kind of honeymoon is that?) Another passenger is Nepalese. The bus is attacked by shady splinter goons loosely affiliated with the Salafi-jihadi Lashkar-e-Taiba outfit.

The Empire has been all over the Indian front. The current US Director of National Intelligence (DNI) Tulsi Gabbard was previously fully funded by Prime Minister Modi’s circles. Eyeliner-loaded VP J.D. Vance recently visited India – complete with family Taj Mahal photo op. Then Modi went to visit Saudi Arabia – invited by MbS. After the Kashmir bus terror attack, Hindutva fanatics went on a cyber-attack spree.

The crude tactics spell out classic Divide and Rule. Double whammy: revamped weaponization of India, and destabilization of a key Belt and Road Initiative (BRI) China front: the China-Pakistan Economic Corridor (CPEC). A thing of beauty: splitting BRICS from the inside.

None of that, of course, legitimizes the ghastly Pakistani military, which have thrown in jail, on spurious charges, the man who was trying to bring Pakistan to respectability: Imran Khan.

It’s up, once again, to the adults in the room, any room – Russia – to de-escalate. This could be ideally performed inside the SCO – where both India and Pakistan are members, side by side with Iran. Moscow chose to take the initiative, by itself.

Deputy Foreign Minister Andrey Rudenko met with both India’s Ambassador to Russia, Vinay Kumar, and Pakistan’s Ambassador to Russia, Muhammad Khalid Jamali.

Russian terminology is essential: not only there was a call for both parties to “engage in constructive dialogue”. Moscow stressed, “we are ready to counter the global terrorist threat together.” The operative word is “global”. Delhi and Islamabad don’t seem to be getting the message – yet.

Kashmir as a volatile war lab

An infernal machine is predictably on. It’s as if the Anglo-Zionist axis is using Kashmir as a volatile lab for a series of live tests – including pushing nuclear powers to the brink of confrontation. And all that dealt with casual insouciance – practically as a sideshow.

Nothing coming from Sultan Erdogan and his intel apparatus could possibly be seen as trustworthy. In Syria, the MIT’s assets – the Headchopper Inc. congregated in Greater Idlibistan – ended up being installed in power in Damascus with their Zionist-friendly gang leader now posing as President.

The comprador Yankee junta in Islamabad, for its part, may be facing the abyss – which in itself qualifies as auspicious news. In parallel, suspense accrues on whether Modi will show up for the Victory Day parade on May 9 in Moscow – and what he will tell his Russian hosts.

BRICS members Russia and Iran want the International North South Transportation Corridor (INSTC) running smoothly to India sooner rather than later. The game gets even more complex when we see that the Iranian investigation is finally starting to consider that the horrendous explosion at the Shahid Rajaee port may have been an act of sabotage or an FPV strike.

Extra pressure on China is a real motivator for setting up this war lab. Now Beijing not only needs to start worrying about an explosively renewed India-Pakistan front but also extra CIA/MI6 mischief pushing the Pak connection to Uighur Salafi-jihadis.

There’s no chance in hell Delhi will really understand Beijing’s geopolitical predicaments. A perfect scenario for the Hybrid War gang.

Meanwhile, at the BRICS front, at least there are some signs of rationality – coming, once again, from Grandmaster Lavrov.

Even before the BRICS Foreign Ministers meeting early this week in Rio, Lavrov cut to the chase on the financial and geoeconomic front. He stressed that BRICS are working hard on the 2024 Kazan summit-approved “Trans-Border Payment Initiative”; a “payment and clearing infrastructure”; “a re-insurance company”; and a new investment platform.

He had to once again explain to Western media – from the US to Brazil – that “it would be premature to discuss a transition to a single currency for BRICS. We are working together to create a payment and settlement infrastructure for carrying out cross-border settlements among BRICS countries. In particular, as I have already said, this includes increasing the share of national currencies in our transactions.”

A BRICS common currency – a specter hovering over Trump 2.0 – will only come back to the table “once the necessary financial and economic conditions are in place.” Until then, the war on BRICS, hybrid and otherwise, will be relentless.

Trumpty Dumpty

Switching from reality to fantasy, it was such a blast to find the connection between Kashmir and Alice in Wonderland… in a Chinese essay.

It takes supreme Chinese finesse – quite like subverting Taoist wisdom with a touch of post-modernism – to identify the “ruler of the world” (his own terminology) throwing everyone, virtually the whole planet, into the rabbit hole.

So in this wilderness of narrative mirrors, Trump should be perceived as all characters combined: the White Rabbit, Humpty Dumpty (“When I use a word, it means what I choose to mean, no more and no less”), the Mad Hatter, the Queen of Hearts (“Off with their heads!”)

That certainly illustrates the intersection of the trade war (launched by the “ruler of the world”) and the genocide war (fully legitimized by the “ruler of the world”). With an extra twist: reality has a knack to out-Carroll even Lewis Carroll himself.

Enter the curious case of the USS Truman, a giant aircraft carrier, being possessed by the spirit of Ayrton Senna and deciding to pull out an ultra-sharp curve as if it was a Maserati Gran Turismo Stradale in the middle of the Red Sea – just for a F-18E Super Hornet to protest about the maneuver plunging head on to the bottom of the ocean.

At least that was the narrative CENTCOM sold to global public opinion. Blame that damned Houthi missile fire!

Late next month, Huawei will be testing its new powerful AI processor, the Ascend 910 D, even as by early May the previous 910C will start to be mass-delivered to scores of Chinese tech companies.

These serious breakthroughs are the next chapter of Huawei’s drive to counter Nvidia’s global monopoly in GPUs. The Ascend 910D is supposed to be more powerful than Nvidia’s extremely popular H100.

Huawei is pulling no punches in its race to manufacture a new generation of processors. Huawei has collaborated with SMIC – China’s largest semiconductor foundry – to apply Deep Ultraviolet Lithography (DUV) on what was previously only possible on EUV (Extreme Ultra-Violet technology). Once again, Huawei and SMIC defied the proverbial American “experts” with creative engineering solutions.

Huawei arrived at fabricating 5nm chips with DUV even as the process is more expensive than with EUV. If Huawei had access to EUV they would be already manufacturing 2-3nm chips. That will come, in short time, as both China and Russia, under permanent US high-tech blockade, must by all means develop their own EUV technology.

Shanghai geeks are convinced that Huawei will switch on 6G networksbefore the end of the decade. Their current breathless drive is not just aimed at the smartphone front – where Huawei is peerless; the new Huawei Mate 70 Pro + is by far the absolute top smartphone in the world, running on Harmony OS. Huawei is looking at cloud computing, AI and enterprise servers – and to become no less than the core player in the AI infrastructure race.

Ditching Any Reliance on American Technology

Earlier this month, Huawei introduced the CloudMatrix 384, a system connecting 384 Ascend 910C chips. The tech word in Shanghai is that this configuration, under certain conditions, and of course consuming much more power, already outperforms Nvidia’s flagship rack system – which is powered by 72 Blackwell chips.

Meanwhile, Huawei’s Kirin X chip is targeting the PC market, offering stiff competition to Apple, AMD, Intel and Qualcom while Harmony OS plus removes the necessity of using US software such as Microsoft and Android.

Shanghai geeks swear that China essentially doesn’t need to beat Nvidia or other US chips developers. After all, China already has the largest consumer market in the world – by volume and by value. If a parallel tech universe is the likely result of the Trump Tariff Tizzy (TTT), so be it. China already controls over 60% of the global gadget consumer market.

Kirin X may not – yet – match the power of Nvidia’s H100 GPUs. But Huawei chips are already the real deal for every Chinese company which is following the new Beijing-defined direction to reduce any reliance on American technology.

All of the above naturally brings us to the enormous AI elephant in the (digital) room: Nvidia.

A recent book, The Thinking Machine: Jensen Huang, Nvidia, and The World’s Most Coveted Microchip, is quite helpful to track not only the personal story of CEO superstar Huang, a Taiwanese who played the American Dream to the hilt and became a tech multi-billionaire, but Nvidia’s enviable tech accomplishments.

Huang does not interpret AI as emergent machine superintelligence, and firmly dismisses any direct analogy to biology. For this all-round pragmatist, AI is merely software – running on hardware that his company sells for a fortune.

Still, Nvidia has ventured into virgin territory way beyond the American biz-tech Valhalla, complete with holding the most valuable stock on the planet: arguably, when it comes to AI, Nvidia unveiled a new phase of evolution.

It’s crucial to understand how Huang sees China. It is indeed a key market for his AI chips – and he wants to keep selling them in droves. Trump’s tariffs though make sure that won’t happen.

And that’s what moved Huang to ditch his proverbial leather jackets and don a crisp business suit for a strategic visit to Beijing, where he affirmed the sacred importance of the Chinese market, whatever the new Trump-dictated gimmicks.

By 2022, the China market represented 26% of Nvidia’s business; this year, it has fallen to 13%, because of euphemistic “technology export controls”.

The problem is the US government, already by 2022, under the previous automatic pen administration, had blocked sales to China of advanced A100 and H100 chips. Nvidia started selling modified versions – and even after the ban chips continued to arrive in China. By June 2023, it was easy to find A100s for double their price in the black market in Shenzhen.

Huang is convinced that “no AI should be able to learn without a human in the loop” – even as he admitted, two years ago, that “reasoning capability is two or three years out”. Translation: according to Huang AI will start thinking for itself within the next few months.

Even as Nvidia prepares to invest billions of dollars to build AI supercomputers in Texas, the Chinese essentially are not losing any sleep on “thinking AI”: their focus is extremely practical, to conquer not only the Chinese market but also the supply chains of most of Eurasia.

The US National Security Council has concluded that it’s too dangerous for China to buy Nvidia’s high-end chips, even the H20 – designed for the Chinese market. Huawei, anyway, already produces chips somewhat comparable to the H20.

Huang is losing his sleep because, essentially, Nvidia is losing the immense Chinese market to Huawei – with Trump’s direct input. Nvidia has tens of thousands of H20s specially designed for China which they simply cannot sell. Each chip cost between $12,000 to $20,000.

How China Is Opening a Digital “Pandora’s Box”

Huawei’s new drive is yet another example of Chinese will capable of staring down any challenge – based on indigenous talent, tech expertise and national pride. The record, even before Trump 1.0 sanctions, shows that Huawei does eat massive uphill battles for breakfast. In fact Ascend in many aspects was ahead of Nvidia as early as in 2019 – and that’s why two different US administrations banned it.

China is already light years ahead of the US on chip research. Chinese universities amass most places in the global Top Ten for published papers on semiconductors and on citations – a distinction shared, among others, by the Chinese Academy of Sciences (number one), Tsinghua University (one of China’s top two universities), the University of Electronic Science and Technology of China (number four), and Nanjing, Zhejiang and Pekin Universities.

Two weeks ago in Shanghai I first heard that Huawei would catch up with US semiconductor giants in maximum two years. Now, after the announcement of the Ascend 910D, the buzz shifted to only one year for China to overtake Nvidia and develop better lithography machines than the ones currently produced by ASML.

And the debate is fast switching to how far Huawei will be able to go within the next 2 to 3 years.

In several aspects we are already in the early stages of a US-China tech decoupling. For years Nvidia has dominated the AI hardware space. Their GPUS are the brains behind most contemporary advanced AI. The H100 chip is the gold/platinum standard for AI infrastructure worldwide. Nvidia’s chips had huge demand from Chinese tech giants – Alibaba, Tencent, Baidu, Bytedance.

Captain Chaos definitely does not have the cards – which as even South Pacific penguins know, are all made in China.

SHANGHAI and HONG KONG – So, predictably, Captain Chaos did blink first. As much as he – and his sprawling media circus – could not possibly admit it.

It all started with “tariff exemptions” – from smartphones and computers to auto parts – on products imported from China. Then it veered towards carefully manicured leaks implying tariffs “could” be reduced to a range between 50% and 65%. And finally a terse admission that if there’s no deal, a “tariff number” will be unilaterally set.

China’s Ministry of Commerce was unforgiving: “Trying to trade away others’ interests for temporary gains is like bargaining with a tiger for its skin – it will only backfire”.

And it got fiercer. The Ministry was adamant that any Trump 2.0 claims of any progress on bilateral negotiations have “no factual basis” – de facto depicting the US President as a purveyor of fake news.

Tigers, tigers burning bright: the image does not recall poetry superstar William Blake, but Mao’s legendary depiction of the US Empire as a “paper tiger” – a flashback that struck me over and over again last week in Shanghai. If the US Empire was a paper tiger already in the 1960s, the Chinese argue, imagine now.

And the pain will increase, not only for the paper tiger: any dodgy deals made by foreign – vassal – pussycat governments at the expense of Chinese interests simply will be not be tolerated by Beijing.

Last week in Shanghai I was reminded over and over again – by academics and business people – that the weaponized Trump Tariff Tizzy (TTT) goes way beyond China: it is a desperate offense ordered by the US ruling classes against a peer competitor that scares the hell out of them.

The best Chinese analytical minds know exactly what’s going on in Washington. Take for instance this essay originally published by the influential Cultural Horizon magazine breaking down the “triangular power structure” of Trump 2.0.

We have all-power Trump forming a “super-establishment”; Silicon Valley money politics, represented by Elon Musk; and the new right-wing elite represented by VP J.D. Vance. End result: a “governance system that is almost parallel to the federal government.”

European chihuahuas – caught in the crossfire of Trump 2.0 – are simply incapable of such synthetic and precise conceptualization.

Paper tiger meets fiery dragon

What a deep dive in Shanghai has revealed is that China has been handed over a rare earth-like opportunity by Trump 2.0 to consolidate its strategic initiative solidifying the role of leader of the Global South/Global Majority, at the same time carefully managing the risk of a New Cold War.

Call it a Sun Tzu move that may paralyze the Empire in its tracks. Professor Zhang Weiwei, with whom I had the pleasure to share a seminar in Shanghai on the Russia-China strategic partnership, would agree.

China is on the move across the spectrum. Chinese Premier Li Qiang sent a letter to Japanese Prime Minister Shigeru Ishibe urging a joint drive, right now, to counteract the tariff dementia.

President Xi’s top message in his Southeast Asia tour last week was to stand up against “unilateral bullying”.

Xi deftly moved between Malaysia – current rotating chair of ASEAN, always avoiding taking sides – and Vietnam – with its “bamboo diplomacy” always hedging between US and China.

Xi told Malaysia’s Prime Minister Anwar Ibrahim, directly: “We must safeguard the bright prospects of our Asian family”. Translation: let’s create an exclusive sphere of influence close to the ‘community of shared destiny’ but that does not include outside powers such as the US.

In parallel, there has been a strong debate – from Shanghai to Hong Kong – that transcends the role of China as the world’s factory: what matters now is how to redirect some of China’s astonishing manufacturing capacity towards the domestic market.

Of course there are problems – such as the lack of purchasing power among scores of Chinese domestic consumers, even as the bulk of national China income is directed to fixed-asset investments. A great deal of China’s rural elderly population survives on a monthly pension of roughly $30 a month, and the hourly rate for the gig economy has stagnated at around $4.

Meanwhile, in several high-tech fronts, China just built the fastest high-speed train on the planet: 400km/h, soon to run between Beijing and Shanghai. China is already receiving orders for the C919 commercial wide-bodied airliner. And China has come up with the world’s first thorium-powered nuclear reactor. Translation: unlimited cheap and clean energy is at hand.

The Mafia way of doing business

Hong Kong is a very special case. HSBC executives, for instance, worry about a possible decoupling between US and China – and wonder whether Hong Kong may survive without US trade.

Yes, it can. The US is Hong Kong’s third largest trade partner; yet Hong Kong’s export and import to the US are only 6,5% and 4%, respectively, of its total global exports and imports, including transshipment of goods back and forth from the mainland.

HK is a world-class logistics hub and free port. So as long as Trump 2.0 does not forbid trade with Hong Kong – well, anything can happen – imports should not be affected. Anyway, most of what HK exports – electronics, luxury goods, clothes, toys – can easily find alternative markets in Southeast Asia, West Asia and Europe.

The crucial point is that over half of Hong Kong trade is with the mainland. And the key fact is that China can easily survive without US trade. Beijing has been carefully preparing for it since Trump 1.0.

From Shanghai to Hong Kong, the best analytical minds are in tune with the inestimable Michael Hudson, who has emphasized, over and over again, how “the United States is the only country in the world that has weaponized its foreign trade; weaponized its foreign currency, the dollar; weaponized the international financial system; and treated every economic relationship in an adversarial way, to weaponize it.”

A self-confident, high-tech savvy China, from academics and business people to xiao long bao and pulled noodles vendors, graphically understands that the Empire of Chaos, in its drive to “isolate” China, is only isolating itself (and its chihuahuas).

Moreover it’s such a joy to see Michael Hudson also referring to the same “paper tiger” syndrome that I witnessed in Shanghai these past few days: “Well, America has become a paper tiger financially today. It doesn’t really have anything to offer except the threat of tariffs, the threat of suddenly disrupting all of the trade patterns that have been put in place over the last few decades.”

In Shanghai, I heard serial implacable dismissals of the so-called “Miran plan” – as in the paper published last November by Trump’s economic advisor “restructuring the global trading system”. Miran is the brain behind the Mar-a-Lago accord – whose rationale is to weaken the US dollar by forcing major economies – from China to Japan and the EU – to sell US dollar assets and swap short-term US Treasuries for 100-year bonds with zero interest.

Miran’s brilliant idea boils down to nations having only two options:

1.Meekly accept these US tariffs, without retaliation.

2. Write cheques to the US Treasury.

SHANGHAI – There could not be a more strategic place to spend these past Trump Tariff Tizzy (TTT) heady days than in Shanghai – China’s trade, commercial and cultural capital.

From the top of the Jin Mao tower in the world class Lujiazui financial district in Pudong, an elegantly discreet art deco companion to the World Financial Center super-skyscraper – the trademark symbol of China’s economic power – it’s as if the spokes of a wheel radiated to the Bund and beyond tracking a ceaseless drive to counteract the absurd idiocy of the “Emperor of Tariffs”, relentless mocked across myriad Chinese social media platforms.

I have had the privilege to transit from the Bund Financial Center, which hosts among others the Fosun Foundation – a bamboo-inspired architectural masterpiece – to the China Academy at the immaculate campus of Fudan University, where I shared a seminar with star professor Zhang Weiwei and a round table with top PhD students from several disciplines. Professor Zhang Weiwei is the foremost conceptualizer of China as a civilization-state.

The key theme of our seminar was the Russia-China strategic partnership, but inevitably the focus switched back and forth to the rationale behind the Emperor of Tariffs. The questions from the students were as sharp as they come. That was compounded with an in-depth interview for China Academy hosted by their CEO, the formidable Pan Xiaoli.

A visit to the HQ of Guancha – the top independent new/analysis site in China, whose several channels in several different platforms reach an astonishing 200 million people – could not have been more timely. Guo Jiezhen, a research fellow from the China Institute, who was part of our round table at Fudan University, came up with one of the more astute analyses of what he describes as Trump’s “deranged money-making technique”.

While meeting with Guancha’s new editor-in-chief He Shenquan and discussing with hyper-competent international relations specialist Kelly Liu and Yang Hanyi – the China Institute’s communication officer – we watched together an exceptional podcast featuring PLA Colonel Wang Lihua, Gao Zhikai – Deputy Director of the Center for China and Globalization (CCG) – and the always essential Li Bo, President of the Shanghai Chunqiu Development Strategy Institute.

Shanghai, © Photo : Pepe Escobar

And that’s when Mao Zedong’s legendary 1960s formulation of the US as a “paper tiger” – quoted in everything from Latin American guerrilla slogans to Godard movies – resurfaced with full force.

Wang Lihua picked up on what President Xi had told Putin at their landmark meeting at the Kremlin two years ago: we are right in the middle of changes not seen in 100 years.

Wang: “This change cannot be changed all at once, and the trade war between China and the United States will not be resolved once and for all. This kind of friction and struggle, in the words of Chairman Mao, is ‘making trouble, failing, making trouble again, failing again, until destruction.’”

Wang wrapped up with what may encapsulate the general feeling in China, identified in every nook and cranny across Shanghai: “It is difficult for the United States to repair itself from within. Now the United States has to confront China and the whole world, and its strength is obviously not enough, so failure is inevitable. We are not afraid of a protracted war, because time is on our side.”

China “not afraid of war”, however it may manifest itself, from hybrid to hot, is the consensus feeling in Shanghai, borrowing from the Maoist concept of “united front”, and espoused from academics and business leaders to residents of “model quarters” of the Maoist era still impeccably preserved – and with an eye for innovation (example: row after row of a.c. outlets to feed the array of electric bikes parked in the internal patios).

The “Paper Tiger” Lashes Out

It was immensely enlightening to share business dinners with executives and sales people coming from several Chinese provinces – from the stunning Pei Mansion, one of the most beautiful early 20th century buildings in Shanghai, where star architect I.M. Pei lived for one year, to the best Xinjiang restaurant in town, Ali Yang, at the World Financial Center, complete with the full Uighur lamb experience.

In all conversations and debates, a constant: no illusions about Trump 2.0’s shifting strategy, and how it should be turned against him, Sun Tzu-style; how China must amass a solid set of bargaining chips; and most of all how, from the beginning, this was always a war of an elite section of the American ruling classes on China. The rest of the world is a sideshow.

So it’s no wonder that in every business dinner, after a matchless gastronomic feast, the conversation soon veered on how China’s strategy will not be about immediate damage control; and how China is already eyeing new links and nodes to deepen its long-term global competitiveness.

It’s an open question whether Trump 2.0 and his team of Sinophobes will manage to prevent the emergence of a Global Majority strategic alliance against the Empire of Chaos.

In Shanghai, and across China, submission is simply not an option. In cultural terms, Trump has managed to antagonize 1.4 billion Chinese, simultaneously, by treating the civilization-state without respect. The one thing that irks Chinese the most is mistreatment (see, for instance, the “century of humiliation”).

Shanghai, © Photo : Pepe Escobar

A full-blown trade war? Deep decoupling? Bring it on.

The Emperor of Tariffs particularly hit Southeast Asia’s supply chains – Vietnam, Cambodia, Laos, Myanmar. For all ASEAN 10, their major trade partner is China. Chinese FDI is quite important in Cambodia and troubled, post-earthquake Myanmar. There’s no question ASEAN will have to act in a “strategically multilateral” manner.

President Xi’s timely tour of Vietnam, Cambodia and Malaysia is already setting the tone – corroborated by Foreign Minister Wang Yi: “South East Asia achieved a consensus: we will stand united and say no to these backward, regressive actions.”

The Trump Tariff Tizzy (TTT) is a war against BRICS and ASEAN – and the increasing presence of ASEAN within BRICS, as full members (Indonesia) and partners (Malaysia, Thailand, Vietnam). Top Chinese intellectuals are fully aware of it. Trump, for his part, considering his record, does not even know what BRICS and ASEAN actually mean.

At the BRICS preparatory sherpa meetings ahead of the summit in early July in Rio, there’s already serious movement to counteract the “unprecedented protectionism” of the Trump trade war, as formulated by the Brazilian Ministry of Agriculture. Trump has already issued a trademark threat: a 150% tariff on BRICS members. Top BRICS member China is not intimidated.

Busy Building a Global Consensus Against Bullying

Meanwhile in Beijing, in tandem with all the intellectual frenzy in Shanghai, Jensen Huang, the CEO of Nvidia, wearing a business suit (he prefers leather jackets) as a sign of respect and speaking in English (even though he was born in Taiwan) had a mega-significant meeting with Ren Hongbin, chairman of the China Council for the Promotion of International Trade (CCPIT).

Three wise monkeys are perfectly aware of what a pigeon posing as eagle is really up to.

The Toddler Temper Tantrum-style Trump Tariff Tizzy (TTT), now accelerated to 145% – and counting – is yet another thunderous trademark pigeon smashing the chessboard gambit.

It won’t work. Trump claimed that China would call him to “make a deal”. That’s reality show territory. Reality is more like the statement by the Customs Tariff Commission of the State Council: “Given that U.S. exports to China already have no market acceptability under the current tariff rates, if the U.S. further imposes additional tariffs on Chinese goods, China will simply ignore them.”

Translation: keep vociferating/tariffing. We don’t care. And we will stop buying from you. Anything.

The Chinese Foreign Ministry: A “tariff-wielding barbarian can never expect a call from China.”

Basic numbers. China’s GDP for 2025 is projected at 5%. U.S. imports account for at best 4% of Chinese GDP. China’s share of total exports to the U.S. dropped to 13.4 per cent in 2024.

Goldman Sachs – not exactly a CCP “mouthpiece” – has just projected that TTT will cost China only 0.5% of GDP in 2025, while costing no less than 2% of U.S. GDP. Talk about blowback.

Still, from now on, what matters most for Beijing is to keep diversifying the supply chain.

Asia-wide, the extra wheels are in motion. President Xi Jinping will soon start an ASEAN mini-tour (Vietnam, Cambodia, Malaysia). The Shanghai Cooperation Organization – increasingly focused on geoeconomics – is about to meet. The EU, for all the mendacity of its “elites”, is absolutely itching to strike trade deals with China.

Zhao Minghao, deputy director at the Centre for American Studies at Fudan University, in Shanghai, refers to the current incandescence as “a game of strategic resolve.”

Previously, the eminent Wang Yiwei, international relations star professor at Renmin University in Beijing and an expert on the New Silk Roads, noted that the current tariff rate already made China’s exports to the U.S. “almost impossible”.

This analysis noted how China started to deal with TTT with a “courtesy before force” approach, then turned to “we don’t care”, while cultivating “the art of timing” in its asymmetric attack on U.S. stocks.

A fascinating window on the real wheels of Chinese trade is offered by a timely visit to the vast Yiwu International Trade City, the largest concentration of small traders on the planet.

Less than 10% of Yiwu’s phenomenal amount of business involves the U.S. Among the 75,000 business operators in Yiwu Small Commodity City, only a little over 3,000 do business with the U.S.

Two Sinophobes meet one mirage

TTT is largely the product of two crude Team Trump arrogant/ignorant Sinophobes, economic advisor Peter Navarro and Secretary of the Treasury Scott Bessent, who know less than zero about all things China.

In fact it was Bessent who right at the start gave the game away:

“This was driven by the president’s strategy… You might even say that he goaded China into a bad position. They responded. They have shown themselves to the world to be the bad actors, and we are willing to cooperate with our allies and with our trading partners who did not retaliate.”

A crude trap. With the sole focus on China. That had nothing to do with the initial tawdry plot line: tariffs, Mafia-style, on most of the planet, penguins included. If you don’t retaliate, fine. If you do, we hit harder.

of the so-called “Miran mirage” – after Trump’s alleged economic brain Stephen Miran. What is actually happening, fast, bypassing the stupid notion that tariffs will be paid for by current depreciation elsewhere (see Miran’s white paper here), is the uncontrolled demolition of the U.S. as a world trade center.

Asked why he paused the tariffs, Trump answered: “I thought people were jumping a bit out of line. They were getting a little bit yipee. They were getting afraid.”

Nonsense. Trump cannot possibly admit on the record that the U.S. oligarchy, Jamie Dimon and co., freaked out big time; and that, plus the debacle in the bond market, forced him to backtrack.

Nobody in neoliberal heaven and earth can mess with the Goddess of the Market.

As for the long-term strategy of several nations of the Global Majority caught in TTT’s crossfire hurricane, not to mention big players like China and the EU, they will all avidly reduce their dependence on U.S. markets.

Once again, the elaborate “deal” offered by Trump and his illiterate advisors boiled down to a Mafioso “offer you can’t refuse”: blow up, or significantly diminish, your trade with China – the largest trading partner of nearly all of these nations – and trade with Exceptionalistan, plus 10% tariffs. To hell with your economic sovereignty and strategic flexibility. Once again: it’s our way or the – tariff – highway.

Reality instead will dictate that the U.S. will increasingly import Chinese products from third countries – while China will continue to get paid for it. China will export even more to ASEAN and other Global Majority actors.

As it stands, Trump’s “plan” – if there is any – remains to “stabilize” his allies while concentrating all the firepower on China, in theory to drive China’s complex supply chains to chaos and force companies to move production lines to, for example, Vietnam or India.

Shakedown leading to breakdown

China containment will be on overdrive. Expect a tsunami of technological restrictions, investment red lines and, of course, extra sanctions. Sinophobe Bessent does not rule out delisting Chinese stocks from U.S. exchanges: “I think everything’s on the table (…) That will be President Trump’s decision.”

Beijing, for its part, can easily go nuclear, deciding for a sell-off of its U.S. Treasuries en masse, with catastrophic cascading consequences. As of January, Beijing held $760 billion in U.S. debt. With a delightful diplomatic touch, Yang Panpan and Xu Qiuyan, researchers at the Chinese Academy of Social Sciences, note that what happens next with U.S. Treasury bonds remains “highly uncertain”.

Bridgewater billionaire investor Ray Dalio, for his part, while incisive, was also heavy on diplomacy: “We are seeing a classic breakdown of the major monetary, political and geopolitical orders.”

There’s no more “cooperative world order” led by the U.S. (in fact that was anything but cooperative”); Dalio at least recognizes the unilateralism manifest in “the U.S.-led trade-war, geopolitical war, technology war, and, in some cases, military wars.”

Chinese Foreign Ministry Spokesperson Lin Jian de facto synthesized Beijing’s position. No more Mr. Nice Guy, which was the default Chinese position until recently: if the U.S. insists on fighting a tariff war and a trade war, China will fight to the end.

So here we are. And once again, it’s the Empire of Chaos against BRICS.

The Empire of Chaos embarks on a hot geoeconomics war against its peer competitor China; contemplates a hot military war against sovereign Iran; and at the same time tries to appease nuclear/hypersonic power Russia into a sort of hazy deal to somewhat freeze the Forever War by proxy in Ukraine.