China Will Retaliate
China will strike back. There is no doubt about it. President Xi’s power rests on his aggressive call to action to the Party’s cadres to be bold. He can’t back down from any challenge to his authority - foreign or domestic. He can - however - bide his time so long as his supporters are confident that he will act, then he is safe. But the gloves are officially off. This morning, in Hong Kong, media mogul Jimmy Lai and his two sons were arrested on suspicion of foreign collusion and uttering seditious words. And we may have a war on our hands before we know it. Today’s South China Morning Post ran a story about the US looking to “outgun PLA in Indo-Pacific” - and given the current environment - I think that story was directed from Beijing. The story concluded with the observation, “Beijing’s countermeasure is to disrupt the alliance. At the moment, only Australia is listening to the US. Its other allies, like Japan, Singapore, the Philippines, and the other members of ASEAN are undecided about what to do as they don’t want to take sides between Beijing and Washington.” www.macroesg.com @macroesg --- Send in a voice message: https://anchor.fm/macro-esg/message