A recently leaked directive details the Chinese Communist Party’s strategy to respond to Trump’s tariffs.
How is the CCP trying to leverage this moment? Will this be the end of China as the “factory of the world?”
And what’s behind the purges in the military, the apparent removal of two Xi Jinping loyalists, and recent changes in top CCP leadership? Why did two top CCP officials recently swap positions?
Joining Jan today is longtime China analyst and commentator Heng He.
0:56:16 - The Most Dangerous (or Important) Time Since World War Two
0:59:31 - Concluding Thoughts on US-China Relations
🔵 Sign up for the American Thought Leaders ALERTS newsletter to stay up-to-date on new episodes, releases, and special events 👉 https://ept.ms/ATLnewsletter
A recently leaked directive details the
Chinese Communist Party's strategy to
respond to Trump's tariffs. The purpose
of this internal directive is tell the
whole party system that it's time to end
the dominant of the United States. In
Chinese they call which is crisis and
opportunity. So any crisis will be
considered opportunity. How is the CCP
trying to leverage this moment? Will
this be the end of China as the quote
unquote factory of the world? Those
businesses based on the exports are all
closing now. And what's behind the
purges in the military? The apparent
removal of two Xiinping loyalists and
recent changes in top CCP leadership.
Why did two top Chinese Communist Party
officials recently swap positions?
Joining me today is longtime China
analyst Hung Ha. This swap is very
strange because in Chinese CCP's
history, it never happened. Either you
you purged or you retired. This is
American Thought Leaders and I'm Yana
Kellik.
Such a pleasure to have you on American
Thought Leaders.
Thank you for having me. The Chinese
Communist Party recently issued a secret
internal directive in response to these
broad tariffs that the US administration
has put on China and of course other
countries but with China as a focus. So
what was the most important thing that
was leaked? I think the strategy is uh
the purpose of this internal directive
is tell the whole party system that it's
time to end the dominant of the United
States since World War II on three
fields economic, military and
international political. So this is huge
because you know I have never heard they
openly talk about this. Of course, this
is internal, but even internal, you
know, since the end of the cultural
revolution, they never really mention
that. So, this is huge. But we've known
that the Chinese Communist Party is
trying to subvert the US to take the
dominant position, you know, I think
supposedly by 2050, right? That was the
original timeline. But so is it is it
really that significant that that
they're putting it in an internal
directive like this? Just explain to me
why that what what makes this particular
directive different. For 40 years, the
Chinese Communist Party focused on the
economy reform and they tried to police
the United States, try to, you know, get
the chance to take advantage of this
openness uh to the world. But now it
seems they think it's time they have
enough strong enough to take over. And
uh I think this is
uh the the totally openly admit
their purpose their um their goals
totally changed
from the following the uh the world
economy development to take over.
I mean, that's that's kind of
astonishing because we hear all sorts of
things about how the Chinese economy has
huge problems. We hear things about how
Xiinping has lost a lot of power. I'm
going to get you to talk about all these
things in a moment. So, how is it that
they're saying, "Well, this is our
chance to come out and actually, you
know, officially, you know, take over,
take that top position in the world."
uh in Chinese this is uh they call wiji
is crisis and opportunity. Mhm. So any
crisis will be considered opportunity.
Uh at this time I think they try to calm
down the internal
uh uneasy from the you know tariff war.
So I think this is important and uh
every time when they meet some crisis
they need uh something to encourage the
system you know kind of rally everyone
behind. That's what you mean. Yeah cuz
you know um people will think at the
time when China's economy is is bad
right situation is really bad there and
they need something to blame others. So
this is a good chance to blame United
States.
So let's go through a couple of things I
pulled out from these notes that were
leaked from, you know, looking over the
the document. I mean, one of the things
in here has to do with uh working with
the United Front and the uh Ministry of
Foreign Affairs working together to
influence um I I guess the European
countries create a kind of united front
against the United States. Can you
explain that to me a little bit and
maybe even just start by reminding us
what the United Front is?
United Front is
CCP's three major weapon to take over
the power in China. Uh Moson said
there's a three weapons that made the
Chinese revolution successful and the
military
uh and United Front uh and uh the
parties organization. Mhm. So the United
Front is make friends. They must united
all the power even sometimes they
considered as enemy but at this moment
become friends and all the possible
friends together to fulfill
CCP's purpose. That's the United Front.
They identify some countries in there. I
think the UK, Germany, France. Why are
they thinking about these countries? Um
at this moment they will consider uh
European countries will be their friends
against the United States. So the United
front worker will uh united those
European countries that also targeted by
the US as a you know tariff
uh target. So that's the United Front
will uh make friends of the European
countries against the United States.
Well, it's interesting because I I
believe the US administration officials
have talked about the need to kind of
bring the various European nations under
uh the US banner. So like almost like
this is a a choice that people will have
to make. It's like this is the it seems
to be the US strategy as well.
So the fact is uh nobody can no single
country can replace the consumer market
uh as the United States European country
none of them. So China cannot take this
position because China economy is not
based on the consumer oriented but you
know export oriented and that way nobody
can replace the United States. How can
you unite the other countries? Because
you know every country consider their
policy based on their own
interest. Um something else that is
mentioned in here is the implementation
of a rationing system. Like why why
would that be something they would be
implementing now at a time when they're
claiming supremacy? I don't understand
this. Uh they actually they know exactly
why they get rich.
uh it's openness to the west but now
they consider if the worst scenario
happens then they must go back to the
cultural revolution even before cultural
revolution uh at the time China was so
totally isolated so the material the
consumer product will be very rare so
they have to make uh
preparation for the you know
um a distribution totally different
system. It's not market but planned
economy fully planned economy that means
China prepare you know CCP is preparing
for the closed door totally closed door
that's the worst
scenario so you know you talked a little
bit about the United Front as being one
of the three uh elements that Maadong
outlined right the military um and also
the the third one is the party
organization Yes. So I noticed that
recently the heads of the United Front
and the party organization were swapped.
Yeah. This swap is very strange because
in Chinese CCP's history never happened.
Uh you either you you were purged or you
retired and some replacement but two
important department inside the party.
You know CCP has only four departments
at the top. four departments those are
two and this swap you know changing um
it it doesn't make sense but if we
consider CCP now has a big power strug
struggle on top that could be explained
because you know organization department
is very important it decide who seized
power and who put his people on right
position
and United France
Even though it's very important but it's
only deal with outside
and it's not um considered as the most
important element in the power struggle
internal power struggle. So that's why I
think the important person must put in
the organization department and the less
important person put in the United Front
because anybody can United Front is a
well um
organized u effort for many many years
even you change the head of the
department the the work was will still
be done. So I think somebody want to uh
make sure uh the other power because you
know for the
past maybe uh 10 more than 10 years
Shiin Ping is in charge right but
somebody now want to take over this
position and
probably you know put some other people
on those positions. I want to talk a
little bit about this power struggle
because you know on the surface Xiinping
you know sort of is the paramount leader
in charge of everything. Um in reality
I've been following your analysis you're
saying that his power has been actually
reduced quite a bit now but but before
we go there explain to me how this
works. This is a very opaque system that
a lot of people just don't understand.
How how what are the power centers in
the communist party? is the role of the
pilot bureau standing committee and then
the whole pilot bureau um and and so and
just explain to me how that power works
maybe even with if you have some analogy
in the west um yeah usually the the most
powerful is the standing committee of
the bureau uh uh polit bureau uh that's
uh usually nine person or sometimes
seven persons u in charge of everything
so only standing committee make the
decision
And sometimes that's some
retired top leaders also can make the
decision but it it needs opportunity.
That's why when Dunia Ping was in power
he tried to get the old retired top
leaders
um also control the the whole system. So
he set up a uh advisor committee. M and
once they have the standing committee
expand the meeting he can include those
you know old guys uh uh like advisory
board to join the meeting not only that
they can vote that's one thing but uh
now the advisor board was not exist
anymore and shining when he took over He
made sure that polit the the standing
committee is all his his people. So
that's his uh third term. It's he made
sure it's everybody is his his people.
Uh that means you have to have somebody
you know retired people uh old leaders
if they still alive they have to have
somebody inside the party and at the top
to help them get the chance to vote you
know make the decision. some crisis
happens maybe at that that time they
have the chance to you know to influence
the to influence the the final results.
So I sometimes describe uh how the CCP
functions as a kind of a mafia
organization. Yes. Right. Where there's
and so now Xiinping has is the head dawn
who's consolidated all his power. I'm
wondering if you could just comment on
that for me. Right.
Um if you consider uh sting's death when
starring lost conscious they have to
include a lots of important people even
at the time they are not necessarily uh
really in power to discuss how to solve
the situation how to deal with it. Um
moan times also the same. So I think
what happened is uh um last year during
the uh the third uh plannary session of
the party central committee during that
time something happened very likely uh
he got stroke and at that time so that's
Xigin Ping we're talking about there
were rumors that he's gotten strokes and
one in particular we're talking about
July of 2024 right July uh that's the
only time I can consider somebody
getting involved. You know the old
leaders uh those are not in the power
circle currently but get involved but
also with the help with those people
still in the standing committee. So they
made
decision
strip power from some certain field most
likely from the military first
uh and then he recovered a little bit uh
but decisions made so that's like if you
in the um mafia's family and once
somebody the head the dong uh for some
Louis lost the power for several days
and then then the different family head
made the decision. You have to follow
cuz you know even the underground
society they have rules. People will uh
see if you keep your pro promise or
follow the decision. I think that's what
happened also in chi Chinese communist
party the same thing. And once he lost
part of the power, it's very difficult
to regain it. Mhm. Because it's a
decision. Maybe most likely it's written
decision. Uh I think that's the
possibility. Uh I talked about the
standing committee is all his people.
But once somebody in a position because
this um assigned to different jobs and
once somebody
uh in some special position then his
interest connect more to his position
than to Shiin Ping. M for example Mozong
as the party leader he never get the
chance to totally take over Zun's
position because Zuna is the prime
minister prime minister in China's
system party leader is take care of the
revolution
ideology and prime minister is taking
care of the uh you know economy that's
conflict
Once you have this setting and different
people in the head and they will
conflict each other no matter how good
body they were before and I'm pretty
sure in China currently the same
situation because shiin ping's uh the
purpose is go back to the mo ideology
but Lishan as a prime minister he has to
make sure the economy is not collapsed
totally collapsed. So it's conflict
once you in this position even you are
the friends or follower of shiin ping
but you have your own interest. So at
the time when the crisis happens
somebody inside helped to bring the
outside you know the former leaders into
this circle to make the decision. I
think that's the case. Let me see if
I've got this straight. I'm going to try
to bring together. Let's see. I
understood a a bunch of different
threads here. Okay, we have Xiinping
having a stroke. You believe those are
rumors. It's not confirmed by the
government, but we believe this is what
happened. Um, at that moment, other
people looking for power as everybody is
kind of swoop in, take a bit some of
that control, but he doesn't lose power
entirely. Um, at the same time, we have
this whole situation where China's
economy is going through a crisis,
right? the the whole um real estate
sector is is collapsing. Um and there's
you know foreign direct investment is
shutting down which is a big part and
and probably she's being blamed for that
because he's assumed a lot of power. So
this is all happening concurrently right
is this is this is the picture you're
painting. So on the other hand, this
prime the prime minister now is looking
and saying, "Hey, uh, this isn't right
because ultimately if we can't keep the
economy going, we're going to lose the
support of the people because that's
kind of the deal, I guess." Yes. But if
is that does that sound right? This is
what I'm hearing here. Yeah. Yes. That's
why we can see uh the conflict policy.
Mhm. You know from our side we can see
uh recently that the policy is really
conflict uh because the uh the prime
minister is trying to get the investment
back and try to persuade the the whole
world that we are still uh China is
still doing the uh reform and openness.
But on the other side they they create
some laws and try to um you know scare
the foreign investors. So it's conflict.
The purpose of Chinese government and
their policy is to keep communist party
in power not for the people
um you know life easier. It's not that
way. So the every movement made sure the
party is in power, CCP is in power and
all the conflict came from this part.
Mhm. So I know of course you're not an
economist but if you can kind of remind
us what are the elements of the Chinese
economy here and why is it in so much
trouble? Yeah. uh they call the um the
inf infrastruct in investments in the
infrastructure and uh consumer and
another one is export. So the first just
the investment infrastructure you're
talking about these big projects kind of
building lots of huge things
uh grow the GDP but they are not
necessarily used uh afterwards
right um including the the train you
know the highspeed train the whole
nation this is longest in the world and
uh that in this is a very most important
uh the econ economic driving force and
the consumer part is never a big
important part in uh even during the
best time of the reform.
uh they they don't really care and
export is the major one but why so
that's the third piece but why why is
China not growing its consumer
uh part of the economy I think the the
the system designed this way you know
when deniaing to started the reform in
1980s the early 80s um the purpose is
learn from the Asia other countries uh
he said that so anybody follow United
States get
rich and uh so it's designed as the
manufacturer of the world so they
manufacture for the world not for China
to what do you mean by follow the United
States like not copy them because no no
no no you you you trade with the United
States okay yeah you trade but you your
major trade partner is United States And
then they made China the the world of
the the basically the manufacturing hub
of the world I think. Yeah. Yeah. Yeah.
Uh so manufacturer they call the uh the
factory of the world. So it's designed
this way. So all the you know the
infrastructure the transportation
everything is designed for export not
for the Chinese consumers. Yeah. But
what but what about all these buildings
that they build, all these apartments
for investment and so forth? I mean,
presumably someone's supposed to live
there one day, right? No. No. This is
also designed designed to uh to to keep
the uh government power cuz you know all
the buildings. Um why the government is
so fascinated about the buildings?
because they sell the
land cuz this is will never happen in
other country because land is private
but in China the CCP took over China and
took over the land. So the ownership is
the government in China. So they sold
the land to the developer and developer
build and then sell to the you know the
end user.
The China's housing is very expensive
because the money half of the money go
to the
government. So government can get
rich. So all designed this way. It's
that's why we have so many ghost cities
in China.
They didn't really think somebody will
live in there. They just sell the land
and
develop
buildings. That's it.
That's that that's astonishing. I don't
think it's I thought it would be very
hard for people to believe that like
that. Why so many coastal cities?
They know that no people will live there
like Shan is the the plan shining plan
to make it the substitute of Beijing
capital at at least partially. So the
whole city was built from the ground and
now nobody lived there. Mhm. It's so
many years. But so he knew nobody would
live there already. Uh in China, the
decision maker is not based on the
research study or the uh the real needs,
the market need or something like It's
it's kind of still keep a very big
portion of the planned economy and the
plann economy economy is is based on the
leaders idea and nobody knows where the
idea come from. Uh but you know that's
the
decision. Well, this is fascinating
because the other part is you know
clearly they liberalized some of the
economy, right? Yeah. But you're you're
kind of suggesting based on this
directive that we discussed at the
beginning of the interview that they're
actually going back to more planned. Can
you explain that to me? Like what did
they liberalize and is it really are
they really going back to more plan now?
Uh yes. uh because um during the uh
early stage of the uh reform they have
to withdraw parties power from the
economy part and less party in interfere
with the economy and that's why you know
it developed real fast especially the
private section you know private section
developed for 20 years and become bigger
and bigger even though in China it's not
very normal they still have connections
with the uh government power otherwise
you cannot get rich everybody knows that
but the private section still has its
interest and when they get power and
power more and more powerful and they
want more political voice
so that's uh that's one reason another
reason is that reform is only partial
reform they never get serious uh because
China's reform is only in the economy
never in the political system while the
political system is a planned you know
socialism planned economy while the
market economy is bas basically it's a
private section so it has a conflict uh
in the world I don't think any country
successful combine them together and
China is the only one
So you can see the
socialism countries all failed
economy. Uh but China is the only
exception. Now Vietnam try to follow
China's rule. Uh but this if you don't
go to the political reform then the
system is conflict with the economy
economy. That's what happened in China.
And uh
in uh early 2010
uh the people the the leaders some of
leaders inside the chi uh Chinese
communist party realized that uh reform
is going to to to the
end it won't be have the power to
continue because it conflict with the
system they have to find the solution
and I think the first one who tried that
one is inqing. Mhm. Cuz um so that was I
you're talking about a leader who was
you know being groomed to be the head of
the CCP tried to coup against Xigin Ping
but ultimately got deposed. I'm just
kind of reminding our our audiences
about this guy. Yes. Uh this guy was uh
uh used to be uh minister of commerce uh
and then he was uh um demoted to
Chongqing as the leader head of the
Chongqing city and then he started the
called sing revolutionary song and get
rid of the gangster in the economic
field.
So uh this one is like uh um go back
ideologically go back to moong time and
economically try to limit the private
sections power. Mhm. Um he was very
popular at the time and everybody afraid
that he will become the leader of the
chi China but you know for some reason
he he got lost the power you know in the
power structure uh struggle he lost
power and shining becomes the real
leader he's the challenge challenge one
and but shiin ping has the same
background as bos they all belong to the
you know
princ you know the the princ Slings is
the second generation of the revolution
leadersh. Mhm. Uh their fathers are you
know following mad revolution. So they
raised during the cultural revolution
and
they basically they they are familiar
with the the
time their uh golden time
was before cultural revolution. Mhm.
They're good in time and before Den of
course. Yeah. Uh of course before Den
so basically follow
Bilai's idea which is ironic because
Bojili was contending for his position
basically. Yeah. But their ideologies
are the same. Power struggle doesn't
mean ideology struggle. It's it's kind
of different. Got it. Yeah. I took over
the power. I can still go this way. So
this is the um what happened during that
time. uh and then since the shiin ping
time we can see very clearly is expand
the state business you know state power
and reduce the p private sections power
you know reduce the power of the market
market economy for last 10 years it's
very clear uh so I think uh that's the
way they try to solve the conflict with
the system, you know, conflict between
the system and the uh economy. They try
to solve this and ways go back to
Mozai. You know, I'm just reminded again
in this secret directive, one of the
issues was returning the capital
outflows, right? So this maybe talk
explain that to me a little bit because
it's as I understand it it's like
punishable by death to take your assets
overseas even if you're high level right
is that is that right es especially high
level it's only um means the the the
party leaders uh in the media middle or
high rank uh they should uh should
withdraw their assets back to China but
this is the the way to to try to make
sure the party leaders at at any rank
won't challenge or not not necessarily
Shiin Ping won't change challenge
parties power and uh if the uh trade war
or the tariff war or even the hot war
uh started and make sure nobody become
the traitor. Yes. Yeah. I see. Yeah.
That's the purpose. Well, why are so
many assets overseas? Cuz safe. Because
everybody knows in China the private
property is not guaranteed by anything.
They never give up the ideology of the
communist. That means anytime they can
seize your
assets, seize your property. So to for
safety purposes they put them in free
countries basically. Yeah. Yeah. So even
though the most party leaders uh at any
rank they will say um communist
socialism is better than the capitalism
but they still trust capitalism so they
put money and you know buying but wasn't
that already like treason to do that? Uh
no at the time because everybody doing
that now they make sure uh there will be
if you know if if the trade war get
worse you have to withdraw the assets.
Uh one purpose is hit United States
because you have so many properties
assets and you know even even cash go
back to China. So you will lose some
money, right? United States. Another
purpose is to make the party loyal to
the CCP, you know, the the the members
of the party loyal to the CCP. Mhm.
Because during the war, if you have
assets in the United States, then you
will consider your assets interest is
based on the successful of the United
States, not China. So we talked about
these three weapons uh uh the United
Front, the staffing organization
department and of course the military
being the third one. We haven't talked
about the military yet. There's been
huge changes. I mean the number two guy
in the PLA has just been disappeared and
I think demoted or removed disappeared.
What is the significance of that? No,
nothing about nothing says
he's demoted or um purged or arrested.
Uh it's he's just disappeared. Mhm. And
he is the the vice chairman of the
central military commission. Uh totally
three chairmans, one chairman, two vice
chairman and
chairman is Xinping. Mhm. His name is
still the chairman and another two one
is disappeared. Hi Dong, right? Huong.
Yeah. Huong. Huong is disappeared and
before him another is the member of the
central military
commission was demoted and Ma and Hong
came out from the same u military unit.
M so they are same but they belong to
Xiinping's
faction because you know Xigin Ping uh
promoted many uh military generals u but
for the first term basically he tried to
get rid of the members belongs to the
previous leaders. his second term, he
tried to uh put more his people in the
military. And this term, the third term,
basically most of the the military
generals belongs to his faction, all his
people. And he promoted them especially.
Mha is the previous one previous one got
purged and me is in the military staff
department organizing department that
means he puts all shiin ping's people in
different position inside the military
and he was purged it's very strange he
definitely he loyal to only otherwise
shining won't put him in the such
important position but he was ped and
now we don't so they all belong to the
same and also from Fuian sim faction is
from Fuian
and partially
sanghai that's his faction and those
military people also from there I think
it's the uh the the difference start
with the last year July last year. Uh
it's the third
p plary the third plary session of the
communist party central committee. Um
before shiin ping purge other people but
after that looks like some somebody else
is purging
uh shiin ping's
faction's people. So it's uh we see the
purging we see the purging of the
military uh high rank leaders but it's
to a little bit different before and
after. So you know we have you know this
rapidly growing military. I mean this is
when we I've been reading a bunch of
intelligence reports about this. I
hadn't fully realized how quickly
they've been growing. How many new ships
are being built? um all this, you know,
there's all this activity kind of
grayzone activity that's happening all
out in the Philippines and so forth. On
one side, that's happening. On the other
side, it sounds like you're telling me
that Xiinping is losing his people in
the military. Yeah, that's very strange.
Xiinping never really in charge of the
military. He he has no background of
military, you know, career. So when he
took over the power of course he need to
reform the military. So he did reform
the military in 2015. Mhm. He tried to
totally change the military settings and
follow the structure of the United
States Army. Yeah. Changed everything.
Uh but it's very difficult because
Chinese military the CCP military uh I
would say CCP military because this is
the military belongs to the party not
belongs to not belong to the mil uh the
state. Yeah that's incredibly a lot of
people can't even imagine that it would
be like the Republican or the Democratic
party having a military. Yeah. Uh it's
it's written in the constitution. Uh
it's a party's army. It's not a state
and they were designed to protect the
power of the
CCP, not to protect the nation. So it's
different. So actually the this army,
this military is not designed to fight
foreign wars. It's designed to suppress
internal rebels or protests.
But but even today, no, Shiin tried to
change that. M uh CB tried to change
that. Uh that's his structure. Uh the
the whole military new structure is
based on his idea that uh one day or
sooner or later uh will fight United
States
uh through maybe Taiwan or South China
Sea fight. So that's his design. Uh the
problem starts from here because the
expansion military is not problem.
Everybody get benefit from it. Everybody
gets rich from it because you know more
money uh they build more uh know ships,
airplanes, uh aircraft and everything.
But there's lots of money you can take
from it. Everybody get rich. But once
you really want to get into war, that's
totally different story, right? So, uh
when Xiinping tried to um reform the
whole army and then he tried to see if
he can has the enough power, you know,
military power to take over
Taiwan and then he suddenly realized the
military is not as strong as he
expected.
And uh the first thing he found out is
the
rocket unit is not functioning well.
There are two sometimes called the
rocket force I think. Yeah, rocket
force. Rocket force is not functioning
uh function as well as he expected. Uh
because you know if he wants to invade
Taiwan, he need a a very strong
nonconventional
um power, military power. So rocket
force is most important for him. But
then he realized this rocket force is
not prepared for the war. It's not ready
for the war. Uh that's first uh his
disappointed with the military and then
he found out you know the American air
force um think tank published about the
rocket force um the detail very detailed
the the think tank claim that they get
information from the public publications
you know uh that's
from public domain information I think
they claimed right but it's not uh I
checked their reference they have
everything referenced but the reference
part of the reference from their own
research paper and the own research
paper still doesn't have any source so
that means they published first and then
quote their own publication that means
they try to hide their real source and
those real source only can come from CCP
the military internal know uh somebody
uh very high rank. Mhm. Because you know
any low rank um military officials only
know their part but this is huge. It's
the whole picture. So it has to be
somebody leaked the information. That's
why uh Shimi got really mad and then we
see the purge of the rocket force high
rank officials one by one. Uh I think
that's two main reasons that's a very
big issue in the military and then also
the the supply chain military supply
chain uh people involved in the supply
chain al also got purged because this is
the uh very easy part for the corruption
and the most corrupted part is this
supply chain. I'm looking at this leak
directive, secret directive. Um, you
know, your analysis here basically is
that this is it's almost like the CCP is
going for broke, right? Going for broke.
But to me, when there's that kind of
thinking, that's when the possibility of
war becomes very real. Is it through the
tariffs? Is America pushing the Chinese
now to go to war? I've heard that said.
The war only happens in two situations.
One is when Chinese military is ready,
economy and the military is ready to
invade uh Taiwan. Mhm. That's the one
possibility. when the the military is
ready, I don't think it's in the near
future 5 years they they can be ready to
fight because they will consider uh the
war is not against Taiwan, it's against
the United States and even the allies in
um Asia, uh Japan, Australia, you know.
So I don't think that's they are ready
for that. But another way possibility is
when the CCP's ruling power is in
danger. So they need to switch people's
uh uh focus to the outside and they need
the war to prove uh their legitimacy of
the move. Uh that's the only
possibility. But I don't think currently
they are ready for that because you know
they are still purging the military high
rank leaders and if you remember uh the
Soviet Red Army before the World War II
uh starting purged all the you know
military leaders high rank officials and
at the beginning of the World War II uh
the the invasion of the uh Nazi Germany
into Soviet Union. The first months they
lost 1 million armed force because
nobody knows how to fight cuz you know
anybody knows how to fight got purged or
killed by starting so now you are
purging those military high rank
officials how can you make the war you
know I I think it's very difficult
besides I think if CCP's military is not
ready and then that war will um
accelerate the collapse of the CCP
regime.
Why? Cuz you know if you cannot win the
war then you lose the uh you know the
support of the people and the support of
the party itself. So bottom line, what
is the impact of this tariff approach
that the Trump administration has
imposed on China and you know related
countries, neighboring countries? Um I
think the neighboring
countries just visited the three
countries um
Vietnam, Cambodia and uh uh Malaysia. uh
I don't think those people those
countries are following China's u path
to trade with the United States
especially Vietnam and I don't think
they can and uh in some field export
field and their
competition they they're compet compete
each other not the help each other right
so I don't think um it will help China
to you know to get a support from those
uh Southeast Asia countries. There's no
way. You can see Vena Va made a lots of
promise but never really keep the
promise to CCP. They they try to keep
the promise to United States and they
want to zero tariff with the United
States not China. So that's the uh China
I I think they they try to get zero
tariff as the way to fight the United
States. I think yesterday they they
claim they they they have the zero
tariff policy to 45 countries.
Yeah. Uh less developed countries,
right? Yeah. uh so I think the tariff
impact is huge because you know
currently the three major drive force
for Chinese economy two
uh are already failed it's it's a uh
consumer and in infrastructure it's
totally failed and now they have only
one way uh to get the economy forward is
the
export that's the only way. But the
tariff will stop the major part of their
export
income. And without this money from the
United
States, their other projects are gone.
For example, the belt and you know the
the belt and road and the belt and road
is based on a belt and road basically
you you invest money and most likely you
cannot get the investment
back because those countries not stable
and the economy is not
stable, politics are not stable, you
know the whole uh environment is not
stable. So uh they try to get the money
from United States to invest in those
belton road and once the money is
stopped from United States then the belt
road and other like uh
uh good brick the bricks yeah the the
bricks is also based on China's
um economy not other things I don't
think those country has ideology or any
similarity except want to get some
benefit from the trade with China or
something. uh so other project will get
will failed uh CCP's other
project for example like uh uh Panama
just uh you know cancelled the belt road
contract with China
um Italy I think canceled so the belt
road will
shrink China's influence in the world
will shrink because mostly their
influence is based on the uh the money
to buy uh especially Africa countries
but the money come
from you know trade with you so this is
a huge impact and also inside China
there more and more information come
out those based those businesses based
on the export are all closing now and
there were lots of people won't have job
and uh you know the whole society will
be will be in a mess that's uh I think
CCP is very afraid of because you know
when people so many people don't have
job uh and they cannot create a job so
many years they based on the ex export
their economy is not built on the
consumer not based on you know
manufacture something for the people
inside China to consume
do and you cannot change the whole
structure overnight.
That's the problem. You know, this has
been a an amazing conversation. Uh you
as we finish up, let's talk about this.
We're talking right almost exactly after
this new covid.org org website has
appeared right from the White House
which has you know I don't know changes
the game in a whole bunch of ways very
relevant to China and I want to get you
to comment on that uh what what you
think about this I was so surprised
yesterday I saw the website new website
it's a game change exactly it's a game
change because the United States
government never really
blame China for
pandemic I I think for so many years so
many uh governments try to avoid blame
China for that and blame CCP for that.
The only country did that is Australia
and Australia got punished. Trade, you
know, it's like a small trade war. Uh
they ban a lot of Australia product
import into China. And now this is
United State government
formal, you know, stand. So this is I
think this is huge especially not only
the CTP didn't prevent the spread of the
pandemic but also the cause is manmade
cause so this is not a natural disaster
this is a man-made disaster
and you know I was discussing this uh
with people at the very least you know
they just we all we know that for years
they had really shoddy
uh pra shoddy practices at this lab
right when which was experimenting on
very problematic viruses and so forth.
Yeah. At the very least and at the worst
well yeah king of function this web page
is
directly make
sure United won't let it go it's not
something small we can let it go. uh we
still remember that and we need to even
the website didn't say that but uh I
think the
following will be some uh in the lawsuit
in remember I mean um there were a
number of lawsuits that I I've had
people uh on who were launching lawsuits
specifically to hold the Chinese regime
accountable. I saw also yesterday Jamie
Metsel announced model legislation to
hold the Chinese Communist Party
accountable. So this is very much in
line with what you're saying. Yeah, I
think this is the whole new effort. U
it's I think it's it has something to do
with the tariff war. Uh even though it
didn't say but you know this put um
United States on the high ground. I
think at least high ground because you
know every country is the victim uh of
the
pandemic
and the lab leaked is one accident I
think um or maybe not nobody knows China
won't let anybody to do the
investigation and the United Nations
send the delegates to investigate but
with the conflict interest person inside
right right so you won't get any truth.
But even if you went to China, you won't
get any truth. China CCP is very good at
in destroy the evidences.
But you know uh still the CCP is
responsible for cover up because you
know when they spread inside China and
nobody knows what happened there and
everybody is not prepared for pandemic
and actually CCP shining already know
exactly what happened in Wuhan but they
try to hide and that's the reason you
know why spread all over the world
that's fully their responsibility. So I
think the cover up is you know for the
accountability the cover up is more
important than the origin of the well
the cover up and then also the sort of
stopping internal transportation but
demanding an international
transportation. I remember that the
international flight right to other
countries protested when people wanted
to stop them if I recall correctly. So
there's all these different dimensions
here. Yeah. Yeah. That's what happened.
So you you can you can assume that's the
intent their intention. Yeah. So um I I
think this is very important. Um because
you know uh the the whole world like put
a pause
key for two years. Mhm. And uh nobody is
take responsibility. I think this is not
fair. Mhm.
Well, so last question. Um, some
analysts have described this as the most
dangerous time since World War II for
the world. What do you think? I think
it's the most important time since World
War II. I wouldn't say it's dangerous.
You know, dangerous. Danger is always
there. Um, you know, since like a trade
war, uh, CCP started trade war without
claim the war. Mhm. without declared
war. So long time ago, you mean? United
States is only uh fight back. It's not
the United States started the trade war
or any other war. Uh and the tariff war
is also the same thing. China has the
tariff and the
non-tariff barrier.
So, United States just uh fight back
make it equal you know the the the fair
trade. Uh so I think the danger is
always always there. Um I think the
important thing is United States realize
the situation and face the situation. So
all the step United States um takes
is recognize the all the problems and
try to solve it and uh then I think this
is re rewrites the the the rules since
the World War II because since the World
War II especially since 1970s the
globalization is the trend but now you
find out uh the whole world is hard to
um collaborate very difficult because
it's totally different system totally
different idea even totally different
civilization so the conflict prevent the
globalization actually but now it's time
to realize that and also United States
used to have the policy to um to against
the Soviet Union to, you know, to uh to
connect CCP uh and uh against the Soviet
Union. That's what happened in 1970s,
early '7s. Yeah. They wanted to use
China against the Soviet to leverage it.
Yeah. But after the
1990s when the Soviet Union
collapsed and uh supposedly the game
should have changed. Yeah. But I I don't
think the United States made any change.
Um and then uh CCP took the advantage of
the the
globalization especially when they
joined the
WTO but they abused the WTO abused this
globalization.
Now the the United States realize this
is about the you know the state security
about the you know you cannot rely on
somebody try to take over and destroy
you. So this is I think it's it's the
fact you know just being ignored for a
long time. Well Hung ho it's such a
pleasure to have had you on. It's a
pleasure to be here.
Thank you all for joining Hunga and me
on this episode of American Thought
Leaders. I'm your host, Yana Kell.