The meeting between Xi Jinping and Trump is hyped stratospherically as though Trump and his 12-16 billionaire minions will tromp all over China’s stoic atmosphere and steal deals left and right. Center stage, Trump is prepared to offer XI Jinping the ‘ability to invest $1 Trillion in America’. In return for this carrot, it is anticipated that China will help the US destroy Iran. The Techie billionaire club will all offer to share their knowledge IF China invests in their companies. Apple, Boeing, Citi, Tesla, Meta, Blackrock are all representing America looking for money. And the pressure is building.
In advance, limousines were sent over aboard cargo planes because riding in a Chinese vehicle is apparently not safe. A fifty vehicle motorcade, a minimum of 300 rooms to accommodate security, and likely some presents for Xi, meals et al all billed to America – all courtesy US Taxpayers. I seriously doubt Xi Jinping is impressed, more likely ‘amused’ at the gauche expression of wealth. Unlike the typical Davos extra-curricular activity, I doubt Xi will provide the 2,000 prostitutes these people anticipate. C’est la vie.
The media is already claiming Xi Jinping has agreed to all of Trump’s pressure valves and everything will be great – China might even agree to become the 51st state…
Simultaneously, the US Government has issued a Level 3 Travel Advisory for China – due to arbitrary enforcement of laws – reconsider travel.
Trump is desperate for two things: 1) rare earth minerals, 2) fix the Iran mess for him. The $1 trillion investment in the techie companies is up to the techies to sell. Grovel. Interestingly, the Glam Team seems to think China has $1 trillion in cash just sitting around growing mold & waiting to invest… while demonizing their failed economy. What is unclear, is what China wants from America.
Apparently, America is not offering much – the lifting of ‘some sanctions’, and leaving Taiwan alone seem to be the only cards Trump and his techies have to offer. January 2026, Boeing’s financials revealed deliveries of 600 commercial planes (reflecting a $7 billion loss) and a ‘backlog of 6100 planes’. What fool would put his name as the 6101st in the backlog and wait ten years?
It appears, the spin Trump hopes to create is heavily weighted on the great relationship he has with Xi Jinping and releasing China from US sanctions and tariffs. In a game of Poker – Trump holds the 3 of diamonds and 3 spades. Given the largess sanctions imposed by Trump relate to Iran, Xi Jinping has already instructed all related companies to ignore them. Xi used the ace of diamonds. Given tariffs are absorbed by US Taxpayers – Xi used the ace of spades. And Trump has nothing to sell that China wants.
Treasuries: China still holds $700-$800 billion in US Treasuries. IF China were to sell Treasuries, it would trigger an increase in Treasury yields to make them look more attractive and cause a spiraling of economic pain for America via high interest rates impacting the government debt, businesses and consumers. What IF, Trump proposed ‘loaning’ China the money to invest in the techies? Increasing China’s debt. As of 2024, according to the IMF, China’s debt stood at 88.8% of GDP – compared to the US at 120.79%, Italy at 135.33% and Japan topping the debt world at 236.66%.
That debt would go a lot further in Africa than it could possibly in the US amidst high inflation. Not to mention proximity – closer to home. China is in the early stage of an economic transition with consumption central. Debt is NOT their economic strategy. Average household debt in China is $13,000 compared to the average in the US of $154,150. Obviously, the money changers would like to change that noose and want all global peasants to be heavily indebted to the Bankers.
There is also the Blackrock demand for an international blockchain digital monetary system that Fink could pitch to Xi Jinping. As the BRICS+ have moved from trading in dollars to trading in Yuan which further destabilizes America and the dollar. Banks are NOT ready. The transition could take upwards of ten years. The crater it would create would be filled with gold and silver. The US can’t fill the crater because as Trump has insinuated –Fort Knox is empty.
I doubt China’s Five Year Transition Plan is to make China a slumlord to its taxpayers. 2026 marks the 15th five year plan for China. Always the Tortoise, the purpose of adhering to the plans is rooted in patience. Staying out of wars saves about $360 billion annually. As a result, China has surpassed America in tech, AI, infrastructure, automobiles, and manufacturing. Where it lags is in advanced chip manufacturing which it imports from Taiwan, South Korea, Malaysia and Japan. The discount over Nvidia is upwards of 30% to 50%.
As Trump and his techies land in China, I propose they are wholly under-prepared, overly cocky and will find themselves bowing and scraping for Xi’s approval. Hopefully, they studied Chinese protocols, some words of greeting, manners and etiquette before launching themselves into a grease pit of disrespect. Trump? He will definitely go off script and the profanity and ego will not be well tolerated…