Tag Archives: China

Mar 26 2026

President Trump Summit with Chairman Xi Now Scheduled for May 14th and 15th


Posted originally on CTH on March 25, 2026 | Sundance

This is good news from the standpoint of us wanting to see President Trump continue to make MAGAnomic progress on trade as well as geopolitical alliances.

It will be a very interesting summit against the backdrop of Venezuela, Iran, oil/gas energy shifts, the previous Alaska summit with Russian Federation President Vladimir Putin, the renegotiation of the USMCA and the Chinese auto deal in Canada…

There are a lot of important topics within a Trump-Xi summit.

PRESIDENT TRUMP – “My meeting with the Highly Respected President of China, President Xi Jinping, which was originally postponed due to our Military operation in Iran, has been rescheduled, and will take place in Beijing on May 14th and 15th.”

“First Lady Melania and I will also host President Xi and Madame Peng for a reciprocal visit in Washington, D.C., at a later date, this year. Our Representatives are finalizing preparations for these Historic Visits. I look very much forward to spending time with President Xi in what will be, I am sure, a Monumental Event. Thank you for your attention to this matter!”  ~ President DONALD J. TRUMP

Mar 25 2026

Put this in the USMCA (CUSMA) elimination/negotiation file.  Europe has already been the visible example of what happens when you open your market to low price Chinese EVs.


With the recent agreement by Canadian Prime Minister Mark Carney, Chinese auto manufacturers are now rushing to establish the dealerships, before the Beijing-Canada deal becomes an issue in the USMCA negotiation.

China is NOT going into Canada because they foresee a great market of Snow Mexicans purchasing their low price EVs.  They are going into Canada as a proactive measure to establish a North American footprint with an eye toward the USA.

(VIA MSM) – BYD and Chery are accelerating plans to establish a dealership network in Canada after the country introduced a quota allowing tens of thousands of Chinese-made EVs to enter at reduced tariffs. The rollout will begin in Toronto before expanding to other major cities, with BYD targeting about 20 dealerships in its first year. This marks a significant new front in North American EV competition, as Chinese automakers seek growth outside the U.S., where prohibitive tariffs keep them out.

Canada’s updated trade policy allows 24,500 Chinese-made EVs annually at a reduced 6.1% duty, giving BYD and Chery a rare North American entry point. This follows China’s surge to become the world’s top vehicle exporter, with similar pushes into Mexico, Europe, and Latin America. The quota’s scale is modest but strategically valuable for testing market response and building brand awareness.

The companies will launch in Toronto before moving into Vancouver, Montreal, and Calgary. BYD aims for around 20 dealerships in its first year, using consultants and internal teams to secure prime sites. While the network could strengthen visibility in key urban markets, experts warn the quota’s limited volume may test the viability of multiple outlets.

With U.S. tariffs exceeding 100% effectively barring entry, Canada offers Chinese automakers a platform to establish presence, gauge consumer interest, and potentially influence future trade talks. Similar strategies have been used in Europe, where Chinese EV makers have gained ground despite strong local competition. Success in Canada could pave the way for local assembly or increased quotas. (read more)

Mar 19 2026

Karoline Leavitt Confirms President Trump China Trip Indefinitely Postponed


Posted originally on CTH on March 18, 2026 | Sundance 

This is very interesting because Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer went to Paris last weekend to meet with their Chinese counterparts and organize the deliverables for the upcoming summit between Chairman Xi Jinping and President Trump.

At roughly the same moment that Bessent and Greer were meeting with China, President Trump sent out the Truth Social message requesting Chinese ships to come to the Strait of Hormuz and escort their oil.  I said at the time of Trump’s message that Chairman Xi was going to have to negotiate through this issue carefully because it was very obvious that President Trump was not going to maintain any diplomatic pretenses when he met with Chairman Xi.

Yesterday, during the St Patrick’s Day celebration President Trump said the summit was cancelled. “We’re resetting the meeting and it looks like it’ll take place in about five weeks,” President Trump told reporters in the Oval Office in an event with Micheál Martin, the Irish prime minister.

Today, Press Secretary Karoline Leavitt confirmed there is no scheduled replacement date for the cancelled summit.

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Keep watching.  Bessent and Greer didn’t go to Paris for nothing.

Mar 17 2026

Iran, Russia, China, and the Emerging Axis


Posted originally on Mar 17, 2026 by Martin Armstrong |  

Flags of Russia, China, and Iran. Illustrative Image. (Photo: Open source)

For years, I have warned that geopolitics moves in cycles just as markets do. The Economic Confidence Model has been projecting that the period around 2026 would become a geopolitical turning point, leading to rising confrontation toward the Panic Cycle in 2027 and ultimately the 2028 Panic Cycle year. What we are now witnessing is the early stage of that alignment. The conflict with Iran is no longer merely a regional war. It is evolving into something far more significant as alliances that previously existed quietly in the background are now being acknowledged publicly.

Iran’s foreign minister has now openly stated that Russia and China are providing military cooperation to Tehran during the war with the United States and Israel. He emphasized that these relationships are part of long-standing strategic partnerships that now include intelligence sharing and other forms of support as the conflict escalates. This matters enormously because once cooperation becomes official rather than discreet, it changes the geopolitical landscape. The declaration of alignment is a signal to the world that a new bloc is forming.

Reports indicate that Russia’s support has included intelligence assistance and battlefield data, while China has focused on diplomatic backing, logistical assistance, and the protection of energy flows through the Strait of Hormuz. At the same time, Chinese naval assets have appeared near the Strait while Russia and China have coordinated diplomatic efforts at the United Nations to challenge the legitimacy of the strikes against Iran. None of this is accidental. These powers are not rushing troops into battle, but they are positioning themselves strategically while allowing the United States to become entangled in another prolonged conflict.

In the modern era, direct confrontation between nuclear powers is avoided, but support flows through intelligence, logistics, technology, and diplomacy. Russia and China are effectively helping Iran sustain resistance without crossing the line into direct war with the United States. Analysts already note that intelligence sharing and electronic warfare assistance have improved Iran’s ability to track U.S. military movements in the region. The result is a conflict that can drag on far longer than policymakers initially expect.

2023_01_08_Russia_and_Iran_building_full_fledged_alliance

From the perspective of the Economic Confidence Model, this is exactly what a Panic Cycle environment looks like. Confidence begins to shift away from government institutions, geopolitical tensions escalate, and alliances begin to harden. The ECM has shown that 2026 represents the pivot year. Pressure builds into 2027, where the Panic Cycle raises the probability of sudden geopolitical escalation, and the cycle then carries forward into the 2028 Panic Cycle year. When these cycles align, history shows that global alliances restructure and the world moves toward a new balance of power.

Energy routes make the situation even more dangerous. The Strait of Hormuz remains one of the most critical chokepoints in global oil supply, and disruptions there have already sent energy prices sharply higher as the conflict intensifies. China’s interest in securing passage through the strait and Russia’s strategic positioning highlight that the battle is not only military. It is economic. Whoever controls the energy corridors and trade routes ultimately controls leverage over the global economy.

The key takeaway is that the official acknowledgement of cooperation among Iran, Russia, and China goes beyond wartime rhetoric. It signals that the geopolitical chessboard is shifting. What began as a regional confrontation now sits within a larger strategic framework that the ECM warned about years in advance. When alliances begin to crystallize during a Panic Cycle phase, the risk is not simply prolonged conflict. The risk is that the world divides into opposing blocs once again, and history shows that such realignments rarely unfold quietly.

Mar 16 2026

All Things Considered – A Good Geopolitical Recap


Posted originally on CTH on March 15, 2026 | Sundance

Some additional contexts not included in the British-centric financial review below.

(1) Japanese Prime Minister Takaichi Sanae will be at the White House next week.  This meeting was scheduled several weeks before Operation Epic Fury began.  The timeline continues to indicate that President Trump’s primary geopolitical focus is on China, not necessarily the U.K-EU angle, although that is a materially significant overlay.

(2) “A major U.S. weapons package for Taiwan worth about 14 billion dollars is awaiting approval from Donald Trump and could be announced after his planned visit to China later this month, according to sources familiar with the discussions. The proposed deal would be the largest U.S. arms sale ever to Taiwan and comes as military tensions between China and the self-ruled island continue to rise.” {SOURCE}

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Heavenly Father, we ask for You to protect our leadership’s intent through value-driven stewardship.  Keep arrogance and pride far from the heart of our leadership and help them to listen well. Dear God, we ask that You provide spiritual protection and intellectual discernment; provide calm through troubled waters, and space for wisdom to enter the hearts and minds of our national leadership keeping their bold influence aligned with Christ’s example. ~ Amen

Mar 15 2026

President Trump Calls on Oil Dependent Nations to Send Military Ships to Backstop Security in Hormuz


Posted originally on CTH on March 14, 2026 | Sundance 

President Trump’s latest two messages via Truth Social present an interesting geopolitical approach with multiple enmeshed aspects.

First, some background context is needed.  Treasury Secretary Scott Bessent and USTR Jamieson Greer are in Paris to meet with Chinese government officials ahead of a scheduled meeting between Chairman Xi Jinping and President Trump.

The main objective of the pre-summit assembly before President Trump goes to Beijing, is to hammer out the actionable agreement details that can be signed off by Xi and Trump.  Bessent and Greer are looking to put a deal together with their Chinese counterparts so that Trump and Xi can announce mutually beneficial outcomes during their summit.

Second, President Trump has already indicated the March 31/April 1 meeting with Xi will be all business. The traditional pomp and splendor will not be present, and Trump will only be visiting Beijing – no sidelines.

Third, Secretary Rubio will be accompanying Trump on this trip to Beijing, which might seem ordinary were it not for the fact that in 2020 China sanctioned and banned Rubio from entering China for criticizing Xinjiang and Hong Kong.

Fourth, there are rumors that President Trump is going to announce a significant weapons deal with Taiwan at some point immediately following the trip.  If those rumors are true, it would be a top priority for the Chinese advance team in Paris to stop that from happening.

Regardless of what happens in the next few weeks, President Trump will be meeting with Chairman Xi with full Eagle eye confrontation toward the returning dragon stare.  There will be no panda mask on this trip whatsoever; this face to face is an apex predator showdown, while the world watches intently.

Everything President Trump does between now and his arrival in Beijing, should be contemplated through this adversarial position.  With strong moves in Venezuela and Iran President Trump has already pulled Chairman Xi into the jianshu circle, showing the soul of his blade.

Chairman Xi does not have anything resembling a retreat position. He has a highly focused domestic audience, and the eyes from the Great Hall of the People will be watching intensely.

In the next two weeks we will likely see critical probes of both Trump and Xi’s wills surface in ancillary stories connected to each stakeholder, most likely swirling around the Iran conflict. Do not be surprised if we see all of the advanced USA influence purchasing by China now activated with very specific anti-Trump narratives.

That is the context for President Trump to call out many of the oil dependent countries:

TRUTH SOCIAL – “Many Countries, especially those who are affected by Iran’s attempted closure of the Hormuz Strait, will be sending War Ships, in conjunction with the United States of America, to keep the Strait open and safe. We have already destroyed 100% of Iran’s Military capability, but it’s easy for them to send a drone or two, drop a mine, or deliver a close-range missile somewhere along, or in, this Waterway, no matter how badly defeated they are.

Hopefully China, France, Japan, South Korea, the UK, and others, that are affected by this artificial constraint, will send Ships to the area so that the Hormuz Strait will no longer be a threat by a Nation that has been totally decapitated. In the meantime, the United States will be bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water. One way or the other, we will soon get the Hormuz Strait OPEN, SAFE, and FREE! President DONALD J. TRUMP

There is a significant overlay here.

First, any nation that sends supportive military ships into the Strait of Hormuz is openly taking a position against the Iranian regime.  China cannot take that position, and President Trump knows it – so he’s calling out the dragon’s alignment for the world to see.

…. If you get oil from the region, come protect your ships while I kill the bad guys…

Remember, Japan has a very limited military, and their post-World War II constitution was blocking them from building one.  Changing that position was the goal of Japanese Prime Minister Shinzo Abe, a friend of Trump, and he was traveling throughout Japan with that message when he was assassinated.  That objective now falls to the protege’ of Abe, Prime Minister Sanae Takaichi.

Japan is included on that list of countries specifically to antagonize the dragon, with President Trump saying I have a strong industrial friend in your back yard.

For the rest, notice the countries Trump did not name: India, Thailand, Vietnam, Philippines or any of the Asian countries that are dependent on oil from the middle east.   Trump is not asking the dependency allies of the United States to participate. Instead, President Trump is calling upon the fake-ally countries that oppose the United States but hide behind a friendly smiling mask.

This is a bold underline for President Trump’s former statement where he publicly doubted the NATO allies would ever come to assist the USA (ie. Greenland), even though they are dependent on the security the USA provides.

In this Iranian conflict, the Europeans are dependent on oil from the middle east, but they will not put their military into the fight even if it secures their own economic future.  Opening the Strait of Hormuz benefits the Europeans, but they only want to pontificate grand prose about it; similar to how they pontificated about the threat Iran presented, then lost their supportive tongue when Trump finally did something about it.

A few hours later, President Trump drives home the point:

TRUTH SOCIAL – “The United States of America has beaten and completely decimated Iran, both Militarily, Economically, and in every other way, but the Countries of the World that receive Oil through the Hormuz Strait must take care of that passage, and we will help — A LOT! The U.S. will also coordinate with those Countries so that everything goes quickly, smoothly, and well. This should have always been a team effort, and now it will be — It will bring the World together toward Harmony, Security, and Everlasting Peace!” President DONALD J. TRUMP

Now we wait to see who steps up.

Spoiler Alert – ¹No one will!

¹And that’s the point Trump is making.

I also concur with this point:

Shanaka Anslem Perera: “The coalition call is not about Iran. Iran’s military is destroyed. The coalition call is about the world that emerges after Iran. If America escorts the tankers alone, the Strait reopens under American control and dollar pricing survives. If a coalition escorts them, the Strait reopens under international consensus and the yuan-for-Hormuz proposal dies. If nobody escorts them, the Strait stays closed and China’s shadow fleet is the only commerce moving through it.”

Mar 14 2026

Ahead of Paris Meeting with Chinese Trade Officials, USTR Jamieson Greer Discusses Goals and Objectives


Posted originally on CTH on March 13, 2026 | Sundance 

U.S. Trade Representative Jamieson Greer and U.S. Treasury Secretary Scott Bessent are traveling to Paris this weekend to meet with the Chinese trade officials.  This meeting is in advance of President Trump’s visit to China for direct face-to-face discussions with Chairman Xi Jinping.

Given the recent events in Venezuela and Iran a lot of groundwork must be taking place for the Trump-Xi meeting.  Multiple Chinese interests have been impacted directly.  USTR Jamieson Greer discusses those preparatory issues as well as the recent announcement for Section 301 investigations and tariffs.  WATCH:

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Mar 14 2026

Secretary Bessent Announces “Narrowly Tailored, Short Term Sanction Relief” for Russia


Posted originally on CTH on March 13, 2026 | Sundance |

‘Trump, you magnificent bastard, I read your book!’

President Trump and Treasury Secretary Scott Bessent are facing mounting criticism for creating a window for Russia to sell oil and gas to the global market via “narrowly tailored, short-term” sanction relief.  However, few people are putting the issue into context, and the background here is exceptionally interesting.

According to the terms announced by Secretary Bessent, the license to sell applies solely to Russian crude or petroleum products loaded onto vessels as of March 12 and is valid through midnight Washington time on April 11. [Treasury Notice Here – OFAC Technical Details Here]

[source]

The sanction relief license to sell will be done in globally recognized petrodollars and applies only to preexisting oil and petroleum products that are already in transit at sea.  However, here’s where it gets very interesting and the ramifications are significant.

Immediately following the Alaska summit between Russian President Vladimir Putin and President Trump, Russia restarted Arctic-2 LNG terminals and began increasing oil production for storage on ‘floating platforms.’  President Trump met with Putin on August 15, 2025, and the curious increase in Russian production began on August 18, 2025.

In the past six months Russia has been pumping sanctioned oil and gas and storing it on ships and mobile sea platforms, seemingly (at the time) with no customers.  Suddenly, against the background of the Iran conflict, all of that previously stored ‘on the water‘ production, now worth double, is authorized for global sale (in petrodollars).

Either Russian President Putin is the luckiest guy in the world, or Russia knew something.

In 2025 what Russia did following the Alaska summit did not make sense; now it does and the ramifications are stunning.

President Trump was looking for a way to organize a strategic partnership with Russia on the issue of energy production but was hampered by the preexisting sanction regime and strong opposition from domestic and international politics.

The ‘coincidental’ timing’ of Trump meeting with Putin and then subsequently Russia producing massive amounts of oil and gas for storage on the water suddenly starts to take on an entirely new light.  Did Putin know something was coming, something that would eventually make the Russian over production and ‘on the sea’ storage worth billions.

The implications here are quite remarkable; however, they simultaneously explain most of the behaviors since the Iran confrontation began.

Media reports highlight that Vladimir Putin was asked about a previous joint agreement for military support between Iran and Russia and why Russia did not respond when Iran was attacked.  Foreknowledge would explain that reaction.

Additionally, the Russian Federation president never responded to the Trump operation to take down Venezuelan dictator Maduro and seize control over Venezuela’s oil production.

If there was some discussion inferring that a ‘limited sanction relief’ protocol might be possible, that would explain why Russia began storing oil and gas at sea.

This fact pattern would also indicate that President Trump’s decision toward Iran was made at least six months ago, with a set of geopolitical events planned between the Alaska summit and the eventual confrontation with Iran.

TIMELINE: Trump and Putin meet. Three days later Russia begins pumping oil/gas and storing it at sea. President Trump then triggers the Venezuela western hemisphere security operation; Russia stays silent.  President Trump then triggers the confrontation with Iran; Russia rejects involvement. And then two weeks after the Iran confrontation begins, Trump removes sanctions on Russian oil/gas “in transit” at sea.

Suddenly all of the Russian produced and stored product ‘on the water’ has greater value and new customers.

Just a coincidence?  No way.

The United States needs the oil/gas market stability that Russia can provide.

Venezuela was/is to Trump as Ukraine was/is to Putin.

We’ll keep watching.

Enjoy the rest of your day.

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Mar 13 2026

Witkoff and Kushner Meet Russian Delegation in Florida – Reports Indicate Discussions of Strategic Economic Cooperation on Oil


Posted originally on CTH on March 12, 2026 | Sundance 

The fact that Team Russia and Team USA would be discussing a strategic economic alliance on the issue of energy is not a surprise to those who watched both President Putin and President Trump outline that same content discussion in Alaska last August.  However, given the current conflict with Iran and the escalating oil price issue, Russia and the USA discussing Russian oil capacity and U.S. sanctions therein takes on a new angle.

It has been obvious that domestic U.S. politics, in combination with the Russia-Ukraine war, has impeded President Trump from organizing a strategic reset with Russia pulling away from historic conflicts.  However, CTH is also clear-eyed on the longer-term ramifications for Eastern Europe when contrast with Putin’s ambitions to fix what he perceives as prior Russian Federation mistakes regarding the West (more on that at the end).

As noted in social media exchanges from Witkoff and Dmitriev, the discussion was productive.

[SOURCE]

All indications of this meeting give the appearance of less focus on progress in the Ukraine-Russia conflict, and a higher focus on current economic conditions -created by the Iran conflict- that could be enhanced with cooperation between the U.S. and Russia. {GO DEEP BACKGROUND}

According to Kirill Dmitriev, Russian special presidential envoy for investment and economic cooperation with foreign countries and director general of the Russian Direct Investment Fund (RDIF), relayed through the Russian News Agency (TASS), “he visited the US upon orders from Russian President Vladimir Putin, taking part in a meeting of the heads of a working group on economic cooperation between the two countries.”

According to the envoy, the meeting addressed both promising projects that can help restore Russia-US relations and the current crisis on global energy markets.

The US is becoming increasingly aware of the role of Russian oil and gas in ensuing the stability of the world economy, as well as of the [in]effectiveness of sanctions against Russia, Dmitriev said after the meeting. (source)

“We discussed promising projects that could contribute to the restoration of Russian-American relations and the current crisis on global energy markets,” Dmitriev also wrote in a Telegram post.

“Today, many countries, primarily the United States, are beginning to better understand the key, systemic role of Russian oil and gas in ensuring the stability of the global economy, as well as the ineffectiveness and destructive nature of sanctions against Russia.”

With the strong likelihood that Russia’s restart of their flagship LNG terminal Arctic-2 was directly related to the August summit in Alaska {SEE HERE}, there is already a baseline established for strategic cooperation.

President Trump would have no problem with Russia introducing millions of barrels of oil into the global market given the issues created by conflict in/around the Strait of Hormuz.  However, obviously the issues for streamlined Russia oil exports surround (1) preexisting sanctions, (2) domestic U.S. anti-Russia politics and (3) the political and economic position of the anti-Russia European Commission leadership.

As we previously outlined with the Liquified Natural Gas (LNG) benefit, Russia previously extracted, liquified and pumped massive amounts of LNG into floating storage platforms from Arctic-2.  Those LNG supplies doubled and tripled in value in a few days once Qatar shut down their production facilities and are now being sold to various Asian countries.

Europe has a massive energy problem with severely low LNG storage rates and now a shortage of oil, with EU gasoline prices rising much higher & faster than the rest of the world.  Europe is facing a severe energy crisis overall and now their preexisting economic troubles are being amplified.

More than ever Europe needs the Russian oil/gas, but ridged ideologues will never compromise on their anti-Russia position.  They have even steeper sanctions against Russian oil/gas scheduled to trigger at the end of this month.

It will be interesting to see how President Trump navigates the potential benefit from Russian energy products into the global market against the backdrop of all the geopolitical angst and political opposition against Russia.

…. AND that brings me to a point of discussion that I’ve had with a few dialed-in people.

When you look at the long term, and when you overlay the mindset of Russian President Vladimir Putin, almost everyone in Russia/Eastern Europe who evaluates the future can see the potential for Putin to exploit the EU’s self-created economic vulnerabilities for his own expansionist objectives.

Yes, some elements of the U.S. banter about further Russian expansion are not propaganda.  Most of it is, but there is an element to the future forecast -beyond the Ukraine conflict- that could see Russia in a much stronger position, and the EU in a position of significant weakness.

The MAGA-minded European and Russian people, the ones who have strong wisdom on the issues, can all see a specific set of dominos falling that could place Putin in a position to recapture the remaining pro-Russian geographies in Europe back into an expanded Russian Federation.

Given the highly unstable mindset and friction points within European leadership, that would be a very bad combination to contemplate.

A strategic USA reset with the Russian Federation is a reasonable and pragmatic goal.  There is no reason for America and Russia to be in conflict or opposition and pulling Russia away from a relationship with China has massive benefits for both countries.

The Russian people are not affectionate toward China at all, not even a little bit.  In reality, China is a necessary ally for Russia but not a choice they would select if other options were available and variables were changed.  The Russian people are exceptionally independent, incredibly strong and brutally proud; however, they are also more Western-minded (European, without self-flagellation) than Eastern-minded (Asian).

Here’s where/why Trump is being careful and pragmatic.  President Trump doesn’t want to see an outcome where Russia is eventually stronger than Europe.  There’s not enough frictionless history between the USA and Russia to trust Putin when he says the Federation has no plan to expand into Europe.

The USA can/should be strategic allies with Russia. However, it would be much better if a strong Europe existed at the same time.  Hence, Vice President Vance and Secretary of State Rubio continuing to emphasize that Europe needs to stop cowering in politically correct wokeness.  The EU is destroying itself at the same time Russia is getting stronger.

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Last point, the Lyndon LaRouche team, Promethean Action PAC, are very happy with the ongoing fracture of the USA away from the UK/EU group.  However, be cautious around Political Action Committees who say, “President Trump needs people to understand what he is doing” and we are here as his official policy interpreters.

Remember, President Trump doesn’t need policy interpreters.

Mar 11 2026

Volkswagen Loses Half Their Profit, Now Plan to Cut 50,000 Jobs Over Next Four Years


Posted originally on CTH on March 10, 2026 | Sundance

The origin of this issue goes back to 2021 and the relaunch of the Build Back Better European green energy program to fight the non-existent climate change problem.  We have been highlighting the consequences within the EU auto sector.

We noted in October of last year, the EU’s mandated fines against auto manufacturers who do not hit their production goals for electric vehicle sales began in 2025.  EU automakers unable to meet the regulatory compliance goal began purchasing carbon credits to avoid stiff EU fines.  Many of those carbon credits were purchased from Chinese EV automakers, who then turned around and started using the extra EU revenue to discount Chinese cars sold in Europe.

At the same time as Chinese autos hit record highs in Europe, EU car sales are flat or declining.  Now, Volkswagen is announcing they lost half their profits in one year and will be cutting 50,000 jobs in the next four years.

(MSM – Europe) – Volkswagen just revealed its operating profit sank like a stone last year, dropping by more than half as tariffs, Chinese competition, and shifting strategies took a serious bite out of the bottom line. And that performance now has the VW Group’s execs reaching for the cost-cutting scissors, including plans to shed 50,000 jobs by the end of the decade.

The German automaker reported an operating profit of €8.9 billion ($10.3 bn at current rates) for 2025. That’s down a hefty 53 percent from the year before and well below what analysts were expecting. Revenue, meanwhile, barely moved, slipping only slightly to around €322 billion ($374 bn). (read more)

This was very predictable. In essence, EU car companies buy Chinese car company carbon credits, to avoid the EU fines.  The Chinese car companies then use the carbon credit revenue to subsidize lower priced Chinese EVs to the European car market, thereby undercutting the European EV car companies.

The EU tariff applied to gasoline powered cars or hybrids from China is 10%.  That tariff is not enough to stop the imports. The Chinese hybrid autos are substantially less than European car brands, and there’s no financial incentive for China to build auto plants in the EU zone especially when you consider the EU is subsidizing those cars by purchasing carbon credits.

When analyzed from a cost and consequence, the entire EU dynamic toward car companies is a little funny.  However, for Germany this is a serious issue, and with the German industrial economy already stagnant – every impact to their auto industry only makes the situation worse.

When you overlay the big picture of their expensive “green energy” costs, the EU find themselves in an unescapable downward spiral.  Quite literally, all commonsense seems to have been lost in their green energy chase.

By focusing on energy targets, specifically by trying to force production of European electric vehicles that are not favored by European car purchasers, the EU is shrinking their economy to the benefit of Beijing exploitation.

German Chancellor Friedrich Merz recently travelled to China for a discussion with Chairman Xi Jinping.  Chancellor Merz returned to German with a stark message about how the nation needed to quickly get productive in order to meet the far superior work ethic he saw in China.

At the same time, the EU has destroyed its energy sector by chasing windmills and solar farms instead of maintaining the much cheaper coal and gas alternatives.  Overall, Europe has made a series of really bad decisions, but those consequences will surface the hardest within the largest industrial economy, Germany.

They’ve got major problems now.