Chinese government-controlled enterprises are targeting U.S. companies operating inside of China. The latest proof of this comes from Cisco Systems.
Cisco’s CEO Chuck Robbins told CNBC on Thursday, August 15, 2019, that China is choosing to work with its own local vendors instead of American-owned companies.
“We certainly saw an impact on our business in China this quarter. A lot of state-owned enterprises, I think where they have options, they’re choosing local manufacturers. We don’t know if that’s a short-term thing or a long-term thing,” Robbins said on CNBC.
Remember, in communist China, the government owns the means of production so if the government wants to damage foreign sales inside its borders, it’s really super simple for China to do that. It appears that’s exactly what China is now doing.
Cisco shares tumbled Thursday after they lowered forward guidance. Revenue in China was down a whopping 25% on an annualized basis in its fiscal fourth quarter.
We have detected dark pool selling in Cisco stock on August 15, 2019.
The dark pool prints are selling IMO. Notice how the price is dropping after each dark pool order.
If the U.S. and China were able to strike a deal to resolve their trade and technology disputes, Robbins said that he would expect “more robust access” in China.
It’s clear what China is doing. If U.S. corporations want to keep their access to Chinese consumers, they need to pressure President Trump into abandoning a deal where the trade balance is as close to zero as possible between the two countries.
Russian Roulette – Whose Economy Gets A Bullet To The Head First
President Trump is facing re-election and it looks like the economy might go into a Recession before the end of his first term in office. If that were to happen, the probability that Trump will get re-elected plummets.
China’s economy is growing faster than the U.S. but, it’s more leveraged and in-debt than the U.S. China’s debt to GDP ratio (corporate, household and government debt) now exceeds 303% and makes up about 15% of all global debt. China has so much debt that a slowdown of even a small amount, could create a cascading debt crisis as borrowers default on payments to creditors.
It’s a high stakes poker game where each side is heading towards a recession and the country that collapses first will gain the upper hand in negotiations.
The fact that communist China is so unwilling to negotiate a fair trade deal with the U.S. shows their true intentions and that they’ve been a secret enemy of the U.S. all along.
President Trump should immediately put sanctions against China for building military islands in the South China Sea which violates maritime law. After all, if the goal is to crash the Chinese economy before our own economy goes into a recession, let’s get busy with it already. Clearly China is already targeting U.S. companies like Cisco so let’s ramp things up and do the same.