E Did China Pandemic Endanger The World For A Deal?

Trade wars cause world wars. And the fact that China did not want to fight the trade war with Donald Trump is now being overshadowed by a report from Talkmarkets Contributor Danielle DiMartino Booth that has gone viral. 

Phase One, the Skinny Deal, had requirements that China buy a certain amount of goods from the USA. I reported that Jim Cramer had said that we had China right where we wanted them. How is that working out Jim? 

It is clear that China never wanted to buy that much if market demand did not require it. China was, in my view, stalling and kicking the can down the road with the Skinny Deal from the beginning. Donald Trump was in way over his head. I wrote numerous articles about how the trade war was a bad idea, yet both political parties piled on to Trump's abuse of China. 

And it was an abuse. We all had a good thing going. China was beginning to buy more from the US until Trump ruined it. China was clever, by putting a clause in the Skinny Deal. 

 

The Pandemic Clause

The Skinny Deal was signed on January 15th, and Danielle reported that the Coronavirus Covid-19 was announced within days of that deal. The Pandemic clause put into the deal gets China out of buying promised goods. The Chinese knew they had a pandemic brewing but they waited to report it.

Now I don't know if the Pandemic was an accident, or if it was done on purpose. Our Generals don't know the answer to that question. But DiMartino Booth points out that China waited to report the virus in order to get the out clause signed. She said:

 

So, did the Chinese know damn well that this thing was running around the world for six weeks before they shut down Wuhan? Yes they did. Is that criminal? Yes it is. Does it deserve to go in front of a world tribunal? Yes it does.

I understand her fury, that the Chinese were likely playing hardball and innocent people the world over died, and that maybe the WHO believed China too much. The pandemic has been horrific. If China did not want a trade deal it should have walked away. The damage would have been less than is happening now. 

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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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Gary Anderson 3 months ago Author's comment

Update 5: Five Eyes Spy group has said that the Covid-19 has come from the Wuhan lab, but by accident. However, China withheld timely information. Trump's only idea is to slap tariffs on China. While some sanctions make sense, more tariffs do not. This will hurt the recovery in the USA more than Trump can imagine.

Gary Anderson 3 months ago Author's comment

Update 4: Trump's idea of sanctions on China is to increase tariffs. POTUS45 is considering applying additional tariffs. That is a very bad idea.

Gary Anderson 3 months ago Author's comment

Update 3: China has warned Australia to drop efforts to investigate China's response to and origin of the Covid-19. Australia will lose business, but seems determined to move forward.

Mary Connors 3 months ago Member's comment

If China can be investigated and punished, it should be. But what international body has the power to do so?

Nicky Paterson 3 months ago Member's comment

With China stone walling, deflecting and literally deleting all its research, how can any other country realistically investigate them. It would be impossible to prove anything definitively.

Kurt Benson 3 months ago Member's comment

The only way people can "punish" China is if individuals and companies stop buying from them. But let's face reality. As mad as people are, they'd still rather save a buck by buying an item made in China for less. And companies that want to maximize profit will always choose to source their components from the cheapest option. And that's China.

Gary Anderson 3 months ago Author's comment

But it is more than that Kurt. Buy China and you buy the hope for world growth and prosperity.

Gary Anderson 3 months ago Author's comment

Update 2: France and Germany are inquiring into China's handling of the Pandemic. But those nations and the scientific community have broken with the USA which suspects the Covid-19 was created in the Wuhan lab.

James B. Paxton 3 months ago Member's comment

I find this hard to believe. It almost sounds like China wanted the pandemic to get a better trade deal. But China's inaction ended up costing them billions.

Gary Anderson 3 months ago Author's comment

It is hard to believe. But putting a pandemic clause in a trade deal is not normal. It is the smoking gun. Like I say, it could have been an accident or naturally occurring. Without an investigation no one can prove the virus was deliberate. But not sharing information was deliberate!

Gary Anderson 3 months ago Author's comment

Update 1: Australia is demanding an investigation into the origin and spread of the Coronavirus. It was just a matter of time. One hopes that moderation accompanies resolve. The world has enough evidence alone to sanction China for delaying information. But for the sake of world peace, the sanctions should be limited.

Beating Buffett 3 months ago Member's comment

I'm not one to believe in conspiracy theories but for China to list a pandemic as an out clause weeks before a pandemic was announced... well the timing is awfully coincidental.

Michele Grant 3 months ago Member's comment

While on the surface it does looks suspicious, I would think acts of God are always listed as exceptions to such agreements. Was this standard terminology that was always used?

James Madison 3 months ago Member's comment

It doesn't matter if it is standard or not. If China knew they had a pandemic on their hands, but knew a pandemic provided an easy out for them,.it would make sense that they would be both quick to accept the deal, and to keep the pandemic quiet until the deal was signed.

Gary Anderson 3 months ago Author's comment

ApparentlyMichele, this pandemic wording is not standard in trade deals.

BreakingBad News 3 months ago Member's comment

That's pretty wild. But is there any way to prove it?

Gary Anderson 3 months ago Author's comment

That is a very good question. Danielle is convinced that China had the knowledge and the time to announce the virus, yet waited until after the deal was signed to do so. I believe she makes a strong case. I believe we should act in a calm fashion, although hot heads could prevail. That would be a mistake in my view even though we have every right to take the low road.

BreakingBad News 3 months ago Member's comment

Sadly, it makes perfect sense to me.