Amid a roller-coaster trade war, President Donald Trump's upping the ante last Friday got China to blink, according to Far East foreign affairs expert Gordon Chang on Newsmax TV.
"President Trump just unleashed holy terror on the Chinese," Chang told Monday's "Newsmax Now." "He intimidated them. He pushed them around. This was a really, really good development for us. And China just blinked – by saying it wanted calm negotiations – saying essentially, they're surrendering."
After the Chinese were reneging on buying U.S. agriculture, Trump further hiked tariffs last Friday on China, causing financial markets to react negatively and ultimately leading China to call for a de-escalation.
"We're in a stronger position now than we've ever been in these trade talks," Chang told host John Bachman.
"What Trump did at the G-7 was really important. He got the Japanese to agree in principle to buy about $7 billion more in U.S. ag [agriculture], especially corn. And that just took China's card away."
Gordon said China was targeting the "farm belt" to hit Trump's potential 2020 voting base, but the side deal with Japan was a brilliant counter maneuver.
"Trump just undercut them," Chang said. "The Japanese rode to the rescue, and the Chinese found they no longer had anything to deal with, so they had to capitulate.
"China dropped from being our biggest trade partner to No. 3 in the first half of this year, behind both Mexico and Canada."
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