Schweizer weighs in on the U.S.-China trade war…
GAI President Peter Schweizer says China’s on the brink of an economic implosion — marked by real estate collapse, bank failures, shuttered factories, and widespread protests over unpaid wages.
… and President Trump’s tariffs are adding even more pressure.
The GAI president offered his take before the announcement of the 90-day trade truce.
Schweizer says the tariffs only add to Beijing’s woes but emphasizes deeper flaws rooted in China’s market-Leninist system — and Xi Jinping’s weakening grip on the country.
Schweizer and Kudlow also discuss China’s waning global influence as regional neighbors pivot toward the U.S., compounded by Xi’s alarming military purges — clear signs of political instability.
“The reason [Chinese economy] has worked for the decades that it has is because it was predicated on these cheap exports around the world, primarily to the United States, but also around the world,” Schweizer said.
Schweizer continued: “When that gets disrupted with these tariffs by Trump, it creates huge problems because they don’t have the flexibility of the incentive structure that we have with market capitalist economies. But here’s the other thing that I think is really brilliant on the part of this president. You have the tariffs related to their economic conduct. You also have the tariffs on specific issues like fentanyl, which is something that China could actually fix.”
“The issue is the nature of the economy and the fact that the old model of these massive, cheap exports, it’s no longer happening around the world like it used to, in part because of these new tariffs,” Schweizer added. “The other thing that may be endangering Jinping’s imperial presidency is that his neighbors are turning towards us and away from him.”
Watch Schweizer’s analysis above.
