When
Americans entered the polling booths to elect their 47th President in November
2024, they had only a Hobson’s choice between two mainstream candidates —
Donald Trump and Kamala Harris. One was a crook; the other a dumb-dumb.
The
US as a country was no longer capable of thinking, which is hardly surprising.
Trump ushered in the decline when he was the 45th President, and the
semi-demented Joe Biden sealed the country’s path. And the return of Trump was
another godsend for China.
Each
time China was mentioned by the Western and pro-Western press, it was
invariably described in terms of the “Chinese Communist Party”, rather than
simply the Chinese government. We all know the sinister intent, not to mention
the ignorance. (The correct name is the “Communist Party of China”, if you want
to be exact.)
I
am always contemptuous of politicians with serious character flaws. Trump is
the personification of this.
In
1994, when Trump was struggling with the Riverside South development in
Manhattan, a consortium of Hong Kong businessmen led by Henry Cheng and Vincent
Lo came to the rescue. They acquired a defaulted mortgage of about US$250
million for roughly US$90 million and provided the financing that kept the
project alive. Trump even retained a 30 per cent interest in the profits. It
was, by any reasonable description, a rescue at a particularly difficult time
in his business career.
He
was given extraordinary treatment when he visited Beijing in November 2017,
including a reception at the Forbidden City. Within the following year, the
United States and China were in a full-blown trade war. On 6 July 2018,
Washington imposed 25 per cent tariffs on US$34 billion of Chinese imports.
Gratitude
is totally absent from Trump’s worldview. Those who have read the book written
about him by his niece will also tell you how unkind he could be even to his
own folks.
Then
came Huawei.
On
1 December 2018, the Canadian toyboy Prime Minister Justin Trudeau arrested
Huawei princess Meng Wanzhou in Vancouver at the request of the US. We all knew
the three-year detention was totally uncalled for. Her release was perhaps the
only good thing Biden had done in his whole presidency!
The
last eight years taught China one thing about the Americans and the Whites in
general: Never trust the US leaders, regardless of political affiliation. China
cannot count on the Whites and the pseudo-Whites.
Then
came 2 April 2025 — “Liberation Day” — when Trump announced his sweeping global
tariff decrees.
But
too bad: China was already ready. While the lesser countries were crawling to
ask for favouritism, China totally neutralised Trump’s foolishness.
Even
his own court ruled him wrong.
Yet
the tariff gun has hardly been put away.
Trump
would undermine — for his own ego and personal interests — the enormous
strategic advantages that America spent three-quarters of a century building:
trusted alliances, an open economy, world-class universities, the attraction of
global talent, confidence in the dollar, and the belief that when Washington
gives its word, that word means something.
Trump
seems determined to spend that inheritance.
While
Sleepy Joe and his eunuchs — Antony Blinken, Katherine Tai, Nicholas Burns,
etc. — were still coming up with all sorts of sanctions to try to retard China,
Trump was mobilising a bunch of nincompoops — a harebrained chap called Pete
Hegseth, an economic truth-distortionist called Auntie Scott Bessent, fellow
Epstein-buddy Howard Lutnick, and all — to strengthen and glorify his
supreme-ness. Meanwhile, China was transforming its entire landscape in
economics, the military, science and technology, and what-have-you, to surpass
every nation on earth.
Yet
the Western and the pro-Western press keep telling the ignorant world that
China is facing unprecedented woes in the real-estate sector, youth
unemployment, etc., etc.
They
simply do not — or refuse to — understand that China is correcting these issues
in the most fundamental, albeit difficult, way.
Again,
I go back to Trump’s character flaws to celebrate.
Look
at Canada, one of America’s closest friends and trading partners. As recently
as 21 August 2026, Washington imposed new 50 per cent tariffs on some US$20
billion of Canadian goods after negotiations collapsed. Prime Minister Mark
Carney suspended the talks and announced dollar-for-dollar retaliation.
Is
this how a great power treats its closest neighbours? Trump seems to confuse
fear with respect, and submission with friendship.
Notwithstanding all this, the President of the European Commission, Ursula von der Leyen, is still trying hard to suck up to Trump, although
it is very obvious that he DOESN’T like this blonde! Ditto Sanae Takaichi of
Japan.
But
in global politics, there will always be clowns like them and minions like Ferdinand
Marcos Jr and a couple of others.
On 3 January 2026, US forces entered Venezuela, captured Nicolás Maduro and his wife, and carried them to the United States. Maduro is now being held in New York awaiting a trial scheduled for June 2027.
I
have no fondness for Maduro. Anyone who wears his type of moustache is usually
one who carries a complex. But here is the larger question: Can we keep
allowing the US to enter another sovereign country, seize its leader and carry
him to the US for trial?
Military
power can remove a man. It cannot by itself create legitimacy, prosperity or
stable government. America should have learnt that lesson from Iraq and
Afghanistan.
Apparently
not.
The same hubris is playing out on a vastly more dangerous scale in Iran.
Ayatollah
Ali Khamenei was killed on 28 February 2026 in the opening US-Israeli strikes.
Washington evidently hoped that decapitating Iran’s leadership and smashing its
military infrastructure would produce either capitulation or political
collapse.
Nearly
six months later, where is the triumph?
Iran
has been badly damaged. Thousands have died. Its economy is under enormous
pressure. But the war continues, the Strait of Hormuz remains severely
disrupted, and Tehran retains enough missile and drone capability to keep the
region dangerous. It is a costly standoff rather than the quick strategic
victory Trump might have imagined.
It
is not that Iran is “winning”.
The
much more important point is that America is expending enormous military,
political and economic resources simply to prevent itself from losing control
of the situation.
The
United States is now racing to rebuild its missile inventories. American
high-end munitions stocks have been severely strained by Ukraine, the Middle
East and now Iran.
But
where will it get the rare-earth elements?
Despite
all the sanctions, China continues to buy the overwhelming majority of Iran’s
exported oil. Reuters puts its share at around 80 per cent. China simply
doesn’t give two hoots about Trump anymore.
There
are also growing signs of deeper Chinese-Iranian technological and military
links. US officials say China’s SMIC supplied chipmaking equipment and training
to Iran’s military. Reuters has reported prospective Chinese missile supplies
to Iran, although Beijing has denied some of these reports.
The
point is not that China controls the Middle Eastern battlefield. The point is
that the US can no longer simply issue an order and assume that the rest of the
world will fall into line.
Meanwhile, back home, the numbers are becoming frightening.
The US national debt has now crossed US$40 trillion. Long-term Treasury yields have risen sharply; on 21 August, the 30-year yield ended at about 5.28 per cent, around its highest level in nearly two decades.
Auntie
Bessent can explain, reassure and pontificate as much as he likes.
But
he cannot talk away US$40 trillion.
Nor
can America permanently borrow its way to prosperity, cut taxes, fight
expensive wars, maintain military forces across the world, subsidise favoured
industries and somehow expect the arithmetic never to arrive.
Wall
Street, of course, remains extraordinarily good at keeping the music playing.
AI enthusiasm has sent valuations skyward.
But
musical chairs is an interesting game.
It
works wonderfully — until the music stops.
And
China?
Here,
too, I think much Western commentary remains stuck in yesterday.
First,
let us settle one argument.
If
GDP is measured at market exchange rates, the US remains the world’s largest
economy. But that is merely of statistical interest. You go to America and
straightaway you can conclude that it is nonsense.
GDP
has to be measured by purchasing power parity — unless your country is still
very dependent on the US dollar — and China is No. 1. Period. World Bank data
put China’s 2025 GDP at roughly US$41.3 trillion in PPP terms, against about
US$30.8 trillion for the US.
So
simply shouting “China is still No. 2” without specifying the measure is
increasingly meaningless.
China
certainly has problems, but its leaders are fully aware of them and fully
committed to solving them. Anyone who cannot see China’s industrial power is
looking in the rear-view mirror.
My own shorthand has always been this: America and the West have, in modern history, been superb at 0-to-1 innovation — creating something radically new. But China has become extraordinarily good at 2-to-10 — engineering it, improving it, scaling it, driving down its cost and manufacturing it by the millions.
And
in the real economy, 2-to-10 matters more.
Consider
electric vehicles and batteries alone. In 2025, China produced roughly 16
million electric cars, close to three-quarters of global output. It accounted
for more than 80 per cent of global battery-cell production, around 85 per cent
of cathode active material and more than 90 per cent of anode active material.
That
is not propaganda.
That
is industrial capacity.
In
robotics, an extraordinary pattern is emerging. Chinese companies increasingly
demonstrate an ability to produce breakthroughs and industrialise them cheaply
and rapidly. Their “robot dogs” will knock out the US ones with both eyes
closed.
In
semiconductors and AI, yes, the US does possess some technological advantages,
but we should describe them correctly.
The
world’s dominant advanced-semiconductor foundry is not American. It is TSMC of
Taiwan, which accounts for more than 70 per cent of global foundry revenue.
America’s strength lies elsewhere in the semiconductor ecosystem — in chip
design, AI accelerators, software and intellectual property, together with
crucial allied capabilities in Taiwan, Japan, South Korea and Europe.
How
long that advantage lasts is another question.
And
AI contains another delicious irony.
America’s
greatest advantage has always been its ability to attract the world’s cleverest
people. Chinese talent forms a remarkable part of that strength. Data on
leading AI researchers show just how deeply the American AI establishment
depends upon foreign — and particularly Chinese-trained — scientists.
MacroPolo’s latest talent tracking finds that 38 per cent of the researchers it
studied received their undergraduate education in China, with a very large
proportion subsequently working in the US.
My
oft-used description — “Chinese Chinese versus American Chinese” — is not
entirely without basis.
The
strategic lesson for America should be obvious: if you make talented foreigners
feel unwelcome, you may eventually send some of your greatest intellectual
assets straight into the arms of your competitors.
China has been flight-testing at least two new-generation tailless combat aircraft — the J-36 and J-50 — since late 2024. These are real and impressive.
The
Pentagon claims that its new “Trump” stealth fighter — the F-47 — will fly in
2028.
Let’s
wait and see.
The
battleships are languishing everywhere. One was even left adrift after it lost
power. All these speak volumes. America is NO longer enormously powerful.
China
is MORE than an equal.
The
seas within the 2nd Island Chain will become the graveyards of US and allied
fleets if a war were to break out there.
Xi Jinping is expected at the White House on 24 September 2026. He will be in town for only one day.
And
you can bet on this: Bessent and Lutnick will certainly come up with some new
sanctions the moment Xi’s plane takes to the skies.
But
does China care?
The
relationship has changed.
Xi
comes as the leader of the only country with the industrial scale,
technological depth, military resources and economic weight capable of toppling
the US across every dimension simultaneously.
That
is the reality Trump should understand.
Instead,
he still seems to believe that every international relationship is a Manhattan
property negotiation: frighten the other fellow, threaten to walk away, squeeze
him for the last dollar and announce victory.
At
the end of the day, Trump is actually a weak President. The acronym TACO —
Trump Always Chickens Out — is most apt for him.
And
that is why I continue to regard Donald Trump as something of a godsend for
China.
The Statue of Liberty no longer shines as convincingly as the symbol of freedom and democracy it once was. The model of predatory economics that the West has spent decades preaching to the rest of the world is also coming under increasingly serious question.
There
is, of course, another model emerging from China. Unfortunately, it is not one
that can easily be replicated elsewhere. China’s system is the product of its
own history, culture, institutions and extraordinary capacity for long-term
planning.
But
the larger lesson is much simpler.
The
problem is self-denial. Too many Western and pro-Western leaders remain blind
to the most basic principle of government: leaders must work for the people.
Whatever one may think of China’s political system, its leaders understand that
legitimacy ultimately depends on delivering for their people — building
infrastructure, raising living standards, reducing poverty, strengthening the
country and planning for generations rather than for the next election cycle.
Certainly
not leaders like Trump.
Perhaps
the greatest consequence of the changing world order is that countries, large
and small, are discovering that they no longer have to kowtow to an
international tyrant. They need not accept lectures, threats, sanctions and
bullying simply because these come from a country that once regarded itself as
the indispensable nation.
Every
country has the right to safeguard its own interests, choose its own path and
take pride in its sovereign dignity.
I
am afraid that, under Trump, the US is suffering from a terminal illness. Power
without wisdom, leadership without responsibility, and arrogance without
self-reflection can only accelerate the spiral.
And
that, to me, is America’s death spiral.
End
Some friends have been asking whether I have lost steam with my blog, as they have not seen any new articles from me for several weeks.
Far
from it. I have simply been totally consumed by the preparation of two books.
The
first is Following the Chinese Footprints: A Journey through the Chinese
Diasporas Across Five Continents. It is now in PDF format and available on
request.
The
second is More Than Friends and Acquaintances: Remarkable People I Have Met
Along the Way. This will come in two versions: a digital edition, which
will be available free on request, and a printed edition, for which I will
charge only at cost.
So,
no, I have not lost steam. I have merely been spending it elsewhere!