Political

Was Trump’s seizure of Venezuela’s oil an own goal that will throttle American Trade?

MICHAEL WALSH NEWS SHADOW BANNED BY MAINSTREAM MEDIA

The Chinese government responded strongly to U.S. President Donald Trump’s insolent kidnapping of Venezuela’s head of state. They hit back in ways that can cripple the U.S. economy.

A few hours after the news of President Nicolas Maduro’s kidnapping spread, Chinese President Xi Jinping responded. He called for an urgent meeting of the Standing Committee of the Communist Party Politburo.

The government did not issue an official statement. They did not launch diplomatic threats. Instead, there was the silence that preceded the storm over an aggression targeting Chinese partners in the Western Hemisphere.

The National Bank of China announced a decision. It is suspending all US dollar transactions. This affects companies affiliated with the US defense sector.

Companies like Boeing, Lockheed Martin, Raytheon, and General Dynamics woke up to nightmare news. All their deals with China were frozen without warning.

China State Electric Grid Company is the largest electricity grid in the world. It announced a comprehensive technical audit of all its contracts. These contracts are with American electrical equipment suppliers.

It is a step that means that China is beginning to break up with American technology.

China National Oil Company, the largest state-owned oil company in the world, announced the reorganization of its global supply strategy.

It represented the reactivation of ‘weapon of energy’. This was achieved by canceling the contracts from American refineries. These contracts were worth an eye-watering $47 billion per year.

Chinese oil intended for the East Coast of the United States has been diverted to India, Brazil, and South Africa. It is also redirected to other partners in the global south. This resulted in a 23% jump in oil prices during one trading session.

But the most important of all is a clear strategic message. China is capable of energetically strangling the United States of America without firing a bullet.

The China Ocean Shipping Company controls about 40% of the global maritime transport capacity. It implemented what it called ‘optimization of operational routes.’

As a result, Chinese shipping avoids American ports such as Long Beach, Los Angeles, New York and Miami.

These ports depend on Chinese maritime logistics to maintain their supply chains. They suddenly found themselves without 35% of the usual container movement.

It represented a real disaster for big companies like Walmart, Amazon, and Targa. They depend on Chinese ships to import China-made goods into U.S. ports, as their supply chains suffered a partial collapse within a matter of hours.

Then China activated a new package of measures: the economic capture of the global south.

Chinese Foreign Minister Wang Yi offered Brazil, India, and South Africa preferential trade conditions. Iran, Turkey, and Indonesia received the same offer. An additional 23 countries were also included.

The catch? The deal is for any country that publicly commits to not recognizing any Venezuelan government established with American support. It also applies to governments coming to power through American intervention.

In less than 24 hours, 19 countries accepted the offer. Brazil was first. After Brazil came India, Russia, South Africa, and Mexico. In this way, the concept of a real multi-polar world was realized.

China had managed to form an anti-American coalition on the spot, using weapons of economic stimulus.

China’s international inter-bank payments system has announced an expansion of its operating capacity. This expansion will accommodate any international transactions. These transactions aim to bypass the Washington-controlled ‘SWIFT’ system.

China has shown the world a complete alternative. It is effective compared to the debased Western financial system. This system is often weaponized.

So, any state, company or bank that wants to trade without relying on the U.S. financial infrastructure can now use the Chinese system, which is 89% cheaper and faster.

In the first 34 hours of work, transactions worth 89 billion dollars were processed. Central banks in 34 states opened operating accounts within the Chinese system.

This means speeding up the process of de-dollarization of one of the most important financing sources of the United States.

On the technology front, China controls 60% of the world’s production of rare minerals. These minerals are elements vital for the semiconductor and electronic components industry.

China announced a restriction on the export of these minerals. This applies to any country that supported the abduction of President Nicolas Maduro.

The decision has raised major concern among US tech giants like Apple, Microsoft, Google, and Intel. They depend on Chinese supply chains for key components. Their manufacturing systems are now at risk of collapse in the next few weeks.

Every Chinese move strikes a direct blow to the heart of economic imperialism of the United States.

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1 reply »

  1. I get why China would make a deal like that to global south countries, but I fear for them, they’ve taken a fateful step towards the “values based” trade that has been the undoing of the US. Trade for trades sake without ideological conditions has been Brics strategic advantage.

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