American Thought Leaders The CCP’s Gloves Are Off in Trade War—What’s Next? | Lee Smith
Oct 18, 2025
Lee Smith, an investigative journalist and author of "The Plot Against the President," delves into U.S.–China relations and trade dynamics. He explains how China gained supply-chain dominance through strategic subsidies and weak U.S. defenses. Smith discusses the implications of recent export controls on rare earths and how this escalates the trade war. He examines Trump's views on Xi Jinping, the influence of the China lobby, and the moral stakes involved in disengaging from CCP supply chains, advocating for reshoring and robust economic strategies.
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China Took Off The Velvet Glove
- China responded to U.S. restrictions by weaponizing rare-earth export rules to retaliate aggressively.
- Lee Smith argues this reveals the CCP's true nature beyond its previous 'velvet glove' diplomacy.
State Subsidies Drove Market Domination
- China used state subsidies and deliberate dumping to dominate strategic industries like steel and pharmaceuticals.
- Smith says weak U.S. protections and policy choices enabled China to undercut rivals and capture crucial supply chains.
Unrestricted Warfare Through Institutions
- Chinese strategists embrace 'unrestricted warfare' using economic, institutional, and informational tools instead of kinetic conflict.
- Smith links WTO, WHO influence, and industrial policy to a coordinated campaign against the U.S.
