DAILY BASKET – NEWS COMMENTARY
US Steps on Chinese Toes
MARSAL COMMENTS: The US announcement that it will sell Taiwan $ 1.42 Billion of weapons has China hopping mad. This is not what Trump tacitly agreed with Xi, China’s leader.
Taiwan is a red line for China, and using it to pressure China whether on North Korea, South China Sea or world trade, is rather crass of the US. It seems diplomacy has been put to sleep.
And to top that, the US has a few days ago slapped sanctions on several Chinese companies, individuals and a bank under the pretext of their assisting North Korean nuclear program. These sanctions come despite China’s conceding to US demands and agreeing to put pressure on North Korea to curtail the program. China has indeed put a lot of pressure, including cutting fuel to North Korea. Even Trump has tweeted confirming and lauding China’s efforts in this respect.
But to spring sanctions on China is not only ludicrous, but also dangerous and reflect some desperation.
The scheduled G20 meeting should not be missed, especially when Xi, Putin and Merkel face off with Trump.
NEGATIVE FOR: US, China and the world as a whole.
POSITIVE FOR: No one… except neocon egos.
IMPACT POTENTIAL: High
TIME SCOPE: Short and Medium Term
READ ORIGINAL: http://www.zerohedge.com/news/2017-06-30/furious-china-outraged-us-sale-14bn-weapons-taiwan