NEWS
PRESS RELEASE Leaders of 764 Arrested and Charged for Operating Global Child Exploitation Enterprise
Arrests Mark Significant Takedown Within Violent Online Network
April 30, 2025 DoJ – WASHINGTON – Leonidas Varagiannis, also known as “War,” 21, a citizen of the United States residing in Thessaloniki, Greece, and Prasan Nepal, also known as “Trippy,” 20, of North Carolina, were arrested and charged for operating an international child exploitation enterprise known as “764,” a nihilistic violent extremist (NVE) network. Varagiannis was arrested yesterday in Greece; Nepal was arrested on April 22, 2025, in North Carolina and had a court appearance. Court hearings in Washington, D.C. are pending for both defendants.
The charges were announced by U.S. Attorney Edward R. Martin Jr., U.S. Attorney General Pamela Bondi, FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office, and FBI Assistant Director in Charge Christopher G. Raia of the New York Field Office.
According to the affidavit in the District of Columbia, 764 is a network of nihilistic violent extremists who engage in criminal conduct in the United States and abroad, seeking to destroy civilized society through the corruption and exploitation of vulnerable populations, which often include minors. The 764 network’s accelerationist goals include social unrest and the downfall of the current world order, including the United States Government.
As alleged, the defendants engaged in a coordinated criminal enterprise and led a core subgroup within 764 known as 764 Inferno, operated through encrypted messaging applications. As alleged, they directed, participated in, and otherwise caused the production and distribution of child sexual abuse material (CSAM), and the defendants facilitated the grooming, manipulation, and extortion of minors. Veragiannis and Nepal allegedly ordered their victims to commit acts of self-harm and engaged in psychological torment and extreme violence against minors. The affidavit alleges that the group targeted vulnerable children online, coercing them into producing degrading and explicit content under threat and manipulation. This content includes “cut signs” and “blood signs” through which young girls would cut symbols into their bodies.
The defendants and their co-conspirators around the world used the CSAM and other gore and violent material to create digital “Lorebooks,” which NVEs used as digital currency within the 764 network — traded, archived in encrypted “vaults,” and used as a means to recruit new members or maintain status within the network. The affidavit also details how the defendants instructed others members in grooming tactics and set content production expectations for new recruits. In multiple instances, defendants threatened and caused their victims to engage in self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder.
Also according to the complaint affidavit, the defendants exploited at least eight minor victims across multiple jurisdictions, with some content traced back to children as young as 13 years old. The network’s activities spanned from late 2020 through early 2025, with core leadership roles attributed to both defendants throughout the period.
“The allegations in this case are not only disturbing, they are also every parent’s nightmare” said U.S. Attorney Martin. “The number of victims allegedly exploited by these defendants, and the depths of depravity are staggering. Justice demands that our response be swift in order to ensure public safety, hold the wrongdoers accountable, and bring the victims some sense of closure so they can heal.”
“These defendants are accused of orchestrating one of the most heinous online child exploitation enterprises we have ever encountered – a network built on terror, abuse, and the deliberate targeting of children,” said Attorney General Bondi. “We will find those who exploit and abuse children, prosecute them, and dismantle every part of their operation.”
“The charges against these subjects represent our resolve to dismantle violent networks that seek to destroy civilized society,” said Assistant Director in Charge Jensen of the FBI Washington Field Office. “Our work is not done until justice is restored for all impacted victims.”
“Prasan Nepal, a leader of 764, allegedly instructed other members of the network to use explicit material to induce and extort victims into producing child exploitative content,” said Assistant Director in Charge Raia of the FBI New York Field Office. “Manipulating the most vulnerable members of society—our children—to produce sexually harmful material to further their depraved goals is unconscionable. The FBI is determined to do whatever necessary to stop the heinous actions of 764 members and hold them accountable in the justice system.”
“These arrests expose one of the most disturbing online child exploitation networks we’ve ever encountered,” said NYPD Commissioner Jessica S. Tisch. “A group that glorified violence, weaponized abuse, and targeted children to advance a deeply depraved ideology. Through the Joint Terrorism Task Force, the NYPD is proud to have partnered with federal and international authorities to dismantle this horrific operation and protect the most vulnerable among us.”
If convicted, the defendants face a maximum penalty of life in prison.
This case is being investigated by FBI’s Washington Field Office and New York Field Office with assistance from the FBI Charlotte Field Office, the FBI Athens (Greece) Legal Attaché Office and the Hellenic National Police (HNP) .
It is being prosecuted by Assistant U.S. Attorneys Alexandra Hughes, Karen Ditzler Shinskie, and Jack Korba for the District of Columbia and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section. Paralegal Specialists Marissa Mondelli, Kristina Hamil, and Jorge Casillas provided assistance. The U.S. Attorney’s Office for the Middle District of North Carolina provided invaluable assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charges in a criminal complaint are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Contact
USADC.Media@usdoj.gov
Updated April 30, 2025
Attachment
764_complaint.pdf [PDF, 657 KB]
Topics
PROJECT SAFE CHILDHOOD VIOLENT CRIME
Components
Criminal Division USAO – District of Columbia
Press Release Number: 25-218
May 1, 2025 Jewish Breaking News – Just one day after delivering a speech filled with messages of “peace,” “love ” and “harmony” following his release from prison, shocking revelations have surfaced about Mohsen Mahdawi — a central figure in the Columbia University protest encampments.
Mahdawi, 37 years old and still enrolled as a student, has become a prominent face of the pro-Palestinian movement on campus. He co-led demonstrations alongside fellow activist Mahmoud Khalil, helping to organize the controversial encampment that has sparked national attention.
But according to newly unearthed federal court filings from the Trump administration, Mahdawi once made a deeply disturbing admission: while attempting to buy firearms in Vermont, he allegedly told the gun store owner that he had “considerable firearm experience” and that he had used guns “to kill Jews while he was in Palestine.”
The statement, recorded in official filings, raises serious questions about Mahdawi’s past and motives — especially in light of his carefully crafted public image as a peaceful protester.
During his release from detention yesterday, Mahdawi portrayed himself as peaceful figure focused on reconciliation and nonviolence. But this latest revelation has sparked outrage from Jewish groups and concerned citizens who are questioning why someone with a documented history of violent extremism is not only free, but actively leading student movements at an Ivy League institution.
During his speech yesterday, Mahdawi struck a defiant tone as he stepped outside the courthouse and took direct aim at the administration that detained him. “I am saying it clear and loud to President Trump and his Cabinet: I am not afraid of you,” he declared. He then led chants of “Free Palestine,” urging Americans to defend free speech and push back against political intimidation.The crowd erupted in cheers, but critics say his words should be taken as a warning, not a rallying cry. “He may speak of peace now, but the record shows he once boasted about killing Jews,” said a Jewish Columbia student who wished to remain anonymous. “That is not someone who belongs at the head of any student movement — especially not at an Ivy League institution.”
The university has yet to comment on Mahdawi’s past or his current involvement in the protests.
[Ed.:
The IDF Death Cult and Smart Fires [39:13 fast-forward to 19:49 for Smart Fires] Chananya Weissman
May 1, 2025 – Thanks to a reader for sharing this map of the fires. Quite a coincidence that they are all in the same places where “Yemenite rockets” magically land…never in Caesarea.
Fires have really gotten smart.
People, not so much.
Do you really believe a few Arabs from East Jerusalem are responsible for all this? Have a look at this:
[Ed.: He is referring to ‘Directed Energy’ caused fires as we saw in Lahaina and Los Angeles. 18 or 36 musloid terrorist arsonists (and there were that sort,) couldn’t have perpetrated that!]
Tortured and Killed: Israeli-American Held Hostage for Hours and Beaten to Death in Los Angeles
May 1, 2025 – Initial investigations suggest that the break in was a deliberate and planned act involving kidnapping and severe violence.
Alexander Modvadze, a well-known figure in the Los Angeles Israeli-American community. Modvadze, who had lived in Woodland Hills for the past 15 years, was a respected businessman in the local Israeli-American community. Neighbors described him as sociable and friendly, noting he had no visible conflicts.
Woodland Hills is considered an upscale and generally safe neighborhood with low crime rates. “This is usually a very peaceful area. You almost never see police activity here, let alone hear about a murder,” said a local resident.
Two Israeli Men murdered in Los Angeles within 24 hours; Possible link under investigation
Two Israeli men were found murdered in separate incidents in Los Angeles within a 24-hour span, sparking parallel homicide investigations. Authorities are probing potential links between the cases while urging the public to remain vigilant as suspects remain at large in one of the killings.
BY:Eliana Fleming, JFeed, April 30. 2025:
Los Angeles authorities are investigating two separate murders of Israeli men that occurred within 24 hours of each other, raising concerns and questions within the community. Though investigators have yet to establish a connection between the two cases, both incidents have prompted heightened police activity and public alert.
The first victim, Alexander Modvedze, a 47-year-old Israeli-American entrepreneur, was killed during a violent home invasion at his Woodland Hills residence. According to the Los Angeles Police Department (LAPD), three suspects, identified as Georgian nationals Fata Kochiashvili, 38; Zaza Otarashvili, 46; and Besiki Khotsishvili, 52, forcibly entered Modvedze’s home, held him captive for several hours, and subjected him to a brutal assault that ultimately led to his death. The assailants fled the scene with stolen valuables. With the assistance of the FBI, LAPD officers swiftly apprehended the suspects: Kochiashvili was arrested in Van Nuys, while Otarashvili and Khotsishvili were located in Glendale. All three are currently being held on $2 million bail each.
Authorities indicated that Modvedze appeared to have been deliberately targeted, as neighbors reported unfamiliar individuals entering his home late at night. Modvedze, who had lived in the Woodland Hills area for approximately 15 years, was well-regarded within the local Israeli community and described by neighbors as personable and friendly.
Later that same day, LAPD officers discovered the body of Manny Haidra, a well-known businessman and the brother of Lieutenant Gondar Moshe Haidra, director of Israel’s Nitzan Detention Center. Haidra was found dead in his Valley Village apartment on Riverside Drive after family members, concerned about his lack of communication, requested a welfare check. Responding officers found Haidra unresponsive, and paramedics pronounced him dead at the scene. The circumstances surrounding his death remain unclear, and no suspects have yet been identified.
An LAPD spokesperson emphasized that although no immediate danger to the public has been identified, the suspect or suspects in Haidra’s case should be considered armed and dangerous. Authorities continue to investigate both murders and are actively exploring any potential links between the two incidents. As of now, no concrete evidence connects the cases.
ATTN DOGE: NIH Renews Massive Funding for Fauci’s Infamously Cruel Monkey Island
Courts Hold Grooming Kids in School is Fine But Don’t You Dare Mention God
[Ed.:
RFK Jr. Drops Bombshell — Accuses Biden’s HHS of Being COMPLICIT in Child Trafficking Scheme (VIDEO)
[Ed.: Biden et al need to be hung in a public square on primetime TV; otherwise, there is no justice! WHERE’s THE ARRESTS?]
Woman at Islam Event Tears Off Her Hijab – What She Does Next Has Attendees Furious By Samuel Short
April 30, 2025 The Western Journal – Influencer Valentina Gomez probably won’t be asked to attend next year’s Texas Muslim Capitol Day.
On Tuesday, Raw Story reported that Gomez attended this year’s event, and she posted footage to social media platform X of herself taking to the podium while ripping of a hijab and addressing a crowd of Muslims.
Gomez included the caption, “Islam has no place in Texas. Help me to Congress so we can end the Islamization of America. I only fear God.” [Emphasis added]
San Francisco in Crisis: Viral Video Exposes Chaos Under Democrat Rule
Trump Ousts Former Second Gentleman from Holocaust Memorial Board
San Francisco in Crisis: Viral Video Exposes Chaos Under Democrat Rule
Robert De Niro’s Son Comes Out as Trans Woman — Credits Black Women For Inspiring His Transition
[Ed.:
RFK Jr. Names the Government Agency Behind America’s Geoengineering Nightmare THE VIGILANT FOX
RFK Jr. isn’t just confirming that “crimes” are happening. He’s exposing exactly who’s behind them.
APR 29, 2025
For years, chemtrails have been sold to us as just a “conspiracy theory.”
Now, RFK Jr. isn’t just confirming that “crimes” are happening. He’s exposing exactly who’s behind them.
Before we get into Kennedy revealing who’s behind the geoengineering project, we need to start this story with some crucial context.
Back in August 2024, before he became Secretary of Health and Human Services, Robert F. Kennedy Jr. responded to an X post about a “chemtrail pilot whistleblower.”
At the time, he made a bold promise: “We are going to stop this crime” to the world.
Fast forward to today, and Kennedy is doubling down on putting a stop to geoengineering.
Just a few days ago, after the British government announced new geoengineering efforts to “combat climate change,” he responded with an even stronger statement.
“We will soon end this crime against humanity and our planet,” Kennedy said, “and bring justice to the plutocrats who are perpetrating this mass uncontrolled experiment.”
RFK Jr. recently sat down with Dr. Phil, and he stunned the audience when a woman named Emily asked him point-blank about the toxic aerosols being sprayed over us every day.
“My biggest concern is the stratospheric aerosol injections that are continuously peppered on us every day,” Emily said.
“Bromium, aluminum, strontium—it’s sprayed in our skies. All day long.”
“And I know you’ve talked to Dane Wigington about this, he seems to be one of the experts in the field…”
“How do we stop it?” she asked.
Most politicians would’ve panicked, deflected, or dismissed the question entirely.
But not RFK Jr. He looked her in the eye, answered without hesitation, and said, “That is not in my agency.”
He didn’t deny it was happening. He didn’t hide behind bureaucratic language. He simply made it clear: this isn’t coming from HHS.
Then came the bombshell.
“You know, we [HHS] don’t do that. It’s done—we think—by DARPA.”
Let that sink in. The Defense Advanced Research Projects Agency (DARPA) might be behind what’s being sprayed in our skies.
And according to RFK Jr., “A lot of it now is coming out of the jet fuel,” he said. “Those [toxic] materials are put in jet fuel.”
“I’m going to do everything in my power to stop it,” Kennedy added. “We’re bringing on somebody who’s going to think only about that.”
He ended with a vow that few in Washington would ever dare make: “Find out who’s doing it and holding them accountable.”
When it comes to chemtrails, RFK Jr. isn’t pretending this is some fringe theory. He’s saying the quiet part out loud—and taking aim at the deepest parts of the military-industrial complex.
Click here to watch the full conversation on Merit TV.
Here is the Likely Cause of Biggest Blackout Ever in Spain and Portugal
[Ed.: Yes, but why don’t I buy this explanation? I must be a ‘conspiracy theorist’!]
Illinois GOP Chair Demands Criminal Investigation Into Gov. J.B. Pritzker for Incitement (VIDEO)
DIGGING THEIR GRAVE: Canada’s Far-Left Prime Minister Carney’s Liberal Party to Lead Fourth Consecutive Government By Geller Report Staff
April 28, 2025 – Canadians once again voted for Socialism, mediocrity, and decline. Many commentator’s will blame President Trump for Mark Carney’s tragic win. They are wrong. Canadians have only themselves to blame for their demise.
The left destroyed that country. If they didn’t vote for a conservative out of spite for Trump, then they are lost. At some point you cannot ignore the consequences of ignoring reality. And Canada is long past that point. And if they voted liberal, why should America have to support them? Trump should cut them off.
As for Canada’s Jews, this election result is a disaster. We can expect many of Canada’s 400,000 Jews to flee Canada in the years ahead. There is just no way that PM Carney will confront Canada’s massive pro-Palestinian population to protect 400,000 Jews.
[Ed.: Remember the days when Canada was a great place to get away to? Now, it’s a place to get away from!]
Pakistan Defense Chief Warns War With India ‘Imminent’ — Threatens Use of Country’s Nuclear Arsenal
[Ed.: Oh, nice!]
State Emergency Response Commission gives update on Helene recovery in WNC THERESA OPEKA
APRIL 25, 2025 The Carolina Journal – The North Carolina State Emergency Response Commission met Friday morning to discuss the progress made with Hurricane Helene recovery efforts nearly seven months after the hurricane hit western North Carolina.
Officials gave an outline of what has taken place so far, including:
- Over 6,000 people and 268 pets were rescued.
- Over 6.7 million cubic yards of storm debris, or the equivalent of over 660,000 dump truck loads, were removed across 22 counties.
- There were 131 search-and-rescue teams from North Carolina and nationwide, with over 3,300 searchers.
- Four thousand National Guard personnel were deployed.
- Twenty-eight thousand building searches were conducted.
- One hundred seven people died, and five are still missing.
Justin Graney, chief of external affairs and communications with the Division of Emergency Management, told the commission that almost $100 million has been allocated for the state’s private road and bridge program. This program was established to help property owners repair private roads and bridges damaged during the storm.
The money came from the Disaster Recovery Act of 2025 — Part I, which allocated an additional $524 million to Hurricane Helene relief efforts in western North Carolina, bringing total funding to over $1.4 billion.
Democrat Gov. Josh Stein signed the bill, his first, into law last month, right after the General Assembly passed it.
So far, 8,000 private roadways and bridge projects have been awarded.
State officials said they are working on the construction process for the more than 3,000 property owners who have reached out by proceeding to hire more contractors and engineers. In addition, almost 4,000 people are being assisted with various needs, from food to housing.
Currently, 16 households are still in FEMA transitional housing, like hotels.
While much more work needs to be completed, the commission is also planning for the future and learning from what took place last September so officials are better prepared to handle any similar type of emergency down the road.
The meeting comes after the Federal Emergency Management Agency (FEMA) rejected North Carolina’s request earlier this month to maintain a full 100% federal match for the state’s continued Hurricane Helene recovery expenses.
In a letter to President Donald Trump today, Stein urged FEMA to extend the cost share for a minimum of three months.
Stein said delays in response particularly from the US Army Corps of Engineers meant that the state only effectively received three months of active debris removal under the original six-month reimbursement period.
“In the last four weeks, under the reduced cost share, the Corps has nearly tripled its monthly rate of overall debris removal and has removed approximately the same amount of waterway debris that it had in the prior six-month period,” wrote Stein.
The governor also highlighted the financial strain on the state, which has already appropriated $1.6 billion toward recovery. Preliminary estimates suggest it may cost an additional $1-2 billion to complete debris removal.
[Ed.: Please keep in mind that Hurricane Helene was engineered by our Deep State government and specifically targeted and hit the bulls-eye: the Carolina lithium mines. Research it but: Don’t ‘Google it!!]
DOJ Twists the China Narrative Against Retired Police Detective Michael McMahon
[Ed.: Wasn’t Bondy supposed to be cleaning up the DOJ?]
The Fourth Amendment, ICE Raids, and How the Media Twisted Trump’s Words
[Ed.:
[Ed.: I guess that they all change their minds in unison! At first, they were all trying with all their might to bring them in! Pea-brained leftists!]
[Ed.:
[Ed.:
[Ed.:
Democrat Rep Jamie Raskin Calls For Leftists To “Manifest Their Outrage” | Drew Hernandez
Fears of New US Serial Killer After Eighth Death in String of Peaceful Towns
Creeping Sharia? Washington Becomes 1st State To Recognize Islamic Holidays As State Holidays
BOMBSHELL REPORT: BIDEN GAVE HAMAS OVER 2 BILLION DOLLARS TO KILL ISRAELIS by Phil Schneider
April 23, 2025 Israel Unwired
“Emergency Money” was sent by the United States government under the Biden administration was sent directly to the Hamas terrorists AFTER October 7th. This was all done under the pretext of sending “humanitarian” aid to the “innocent Arabs” caught up in the middle of a war.
WATCH [1:14]
This would be akin to the United States having an air drop to Berlin during World War II in order to help the civilian population during World War II while American GI’s battled the German Nazi war machine. It would have been patently absurd. The same goes for Gaza. Of the 2 billion that United States taxpayers transferred through the council of anti-Israel people that were heading up the United States while Joe Biden dawdled along, the vast majority propped up the killing machine called Hamas.
That is why it is so important to delegitimize any attempt to humanize the “innocent” Arabs in Gaza. The entire facade was based on one big lie. All of the Arabs in Gaza who were noncombatants did not need airdrops and money in Gaza for their continued life there. They needed to be displaced, moved, and freed from the shackles of Hamas. The only ones doing that were the IDF soldiers of the State of Israel.
It is true that the United States did indeed transfer enormous amounts of weapons to the State of Israel following October 7th, but that does not justify the concomitant arming of the enemy under the guise of humaintarian support. This is one of many “humanitarian” causes that are well-served by being cut by the Trump administration.
[Ed.: Where are the arrests?]
[Ed.: So, it was deliberate!!]
[Ed.: It wasn’t only Cuomo and Zucker who perpetrated the mass murder. We must consider the thousands of administrators and employees (the actual foot soldiers on the ground) who went to work every day killing people. It isn’t just Cuomo and Zucker who must be prosecuted to the max for genocide, but every single last one of the actual murderers!)
China Just ‘Folded’ in the Trade War by Gordon G. Chang
April 27, 2025 at 5:00 am
- Xi Jinping’s regime simply cannot admit it is not able to stand up to Washington.
- [O]n April 24 about a dozen Chinese officials, including a “high-ranking official from the Chinese Ministry of Finance,” were seen entering the U.S. Treasury’s main building in Washington at 7:00 in the morning as Chinese security officials attempted to prevent photographers from recording the entry.
- “In fact, the tariff waivers underscore that not only does Beijing need access to the American market far more than Americans need the China market but also that the United States makes vital products that simply aren’t Made in China, and won’t be for years at best.” — Alan Tonelson, trade expert at RealityChek, to Gatestone, April 25, 2025.
- When Trump has to raise the temperature, Beijing has just shown him which U.S. products China believes it cannot do without.
- Beijing has ordered its airlines not to take delivery of Boeing aircraft, and the plane maker has now flown back, from China to the U.S., three 737 Max aircraft that were about to be delivered. Due to the long order backlogs at both Boeing and Airbus, this punishment imposes, as a practical matter, almost no cost on Boeing. Yet if Trump were to order Boeing not to deliver parts or provide services to Chinese airlines, China would soon have to ground a large number of its airliners.
China is making significant trade concessions without saying it is making concessions. Xi Jinping’s regime simply cannot admit it is not able to stand up to Washington. When Trump has to raise the temperature, Beijing has just shown him which U.S. products China believes it cannot do without. (Photo by Athit Perawongmetha/Pool/AFP via Getty Images)
China, according to Reuters and Financial Times reporting on April 25, is not uniformly imposing its new 125% across-the-board tariff on American goods. In short, certain imports from the U.S. are in fact coming in tariff-free. Beijing’s new policy has not been announced and is not official.
“Companies in sectors including aviation and industrial chemicals said that some of their products had already been granted a reprieve, while local media reported that some semiconductors had been spared tariffs,” the Financial Times noted.
American Chamber of Commerce in China President Michael Hart told Reuters that some pharmaceutical company members of his organization had said they were now able to import products tariff-free.
China is also exempting aircraft engines, nacelles, landing gear, and parts.
“A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach,” Reuters stated. The wire service also noted this: “A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among some businesses and trade groups on Friday.”
Hart does not think the tariff exemptions were the result of a “specific policy.” As he told the FT, “I think right now it’s more of a one-off.”
Hart is undoubtedly correct about the unofficial nature of the tariff collections: China’s Customs officials and the Ministry of Commerce personnel have not been responding to requests for comments. “China has not yet communicated publicly on any exemptions,” Reuters stated.
Huatai Securities estimated that Beijing is not collecting tariffs on items that accounted for $45 billion of imports to China last year.
The exemptions suggest a trend. “Recent reports on China secretly waiving tariffs on U.S. imports including certain semiconductors, industrial chemicals, and medical devices add up to a clear Chinese cave-in in its trade conflict with Trump,” trade expert Alan Tonelson told Gatestone.
The move is significant, but why is Beijing making such important trade concessions without admitting it is making concessions?
Xi Jinping’s regime simply cannot admit that it is not able to stand up to Washington.
Xi has configured the Chinese political system so that only the most hostile policies are considered acceptable. Worse, he has staked the Communist Party’s legitimacy on his claim that China has already surpassed America. Therefore, it is hard for him to do anything suggesting that he is dependent on trade with America or is reacting to American pressure.
Xi, consequently, has severely restricted Chinese flexibility, a constraint evident in Beijing’s counterproductive posturing. President Donald Trump last week stated that his administration and China had been engaged in tariff talks. In response to the conciliatory comments, the Chinese regime issued a series of statements denying the existence of any such discussions.
Beijing’s denials, however, are not credible, given the constant dialogue and continuous interactions between American and Chinese officials over various other matters.
In fact, on April 24, about a dozen Chinese officials, including a “high-ranking official from the Chinese Ministry of Finance,” were seen entering the U.S. Treasury’s main building in Washington at 7:00 in the morning as Chinese security officials attempted to prevent photographers from recording the entry.
Unfortunately for Xi, he must make concessions. His economy is far smaller than America’s, and he is the one running large trade surpluses — China’s merchandise surplus last year against the U.S. was $295.4 billion, up 5.8% over 2023.
Worse, China’s economy is probably contracting, something evident from price indicators. The country is in a deflationary spiral: In March, the Consumer Price Index was down for the second-straight month and the Producer Price Index was down for the 30th consecutive month.
Meanwhile, China is in the middle of a slow-moving debt crisis, and Xi, having rejected consumption as the fundamental basis of the Chinese economy, must as a result export more to rescue the increasingly grim situation at home.
China’s Commerce Ministry on the April 24 indicated Beijing would not talk about trade until Trump removes “unilateral tariff measures.” Because of Xi’s need to maintain the façade of intransigence, Trump will undoubtedly have to turn up the heat again.
When Trump has to raise the temperature, Beijing has just shown him which U.S. products China believes it cannot do without.
“In fact, the tariff waivers underscore that not only does Beijing need access to the American market far more than Americans need the China market but also that the United States makes vital products that simply aren’t Made in China, and won’t be for years at best,” Tonelson, who comments on the intersection of trade and geopolitics at RealityChek, pointed out.
Take aircraft parts. Beijing has ordered its airlines not to take delivery of Boeing aircraft, and the plane maker has now flown back, from China to the U.S., three 737-Max aircraft that were about to be delivered. Due to the long order backlogs at both Boeing and Airbus, this punishment imposes, as a practical matter, almost no cost on Boeing. Yet if Trump were to order Boeing not to deliver parts or provide services to Chinese airlines, China would soon have to ground a large number of its airliners.
China, in reality, is in no position to fight a prolonged trade war with a determined Trump. That is one of the Chinese vulnerabilities that became evident when Beijing began making concessions in the dark.
China is making significant trade concessions without saying it is making concessions. Xi is, to borrow the term of the day, “folding.”
Gordon G. Chang is the author of Plan Red: China’s Project to Destroy America, a Gatestone Institute distinguished senior fellow, and a member of its Advisory Board. Follow him on X @GordonGChang.
[Ed.:
[ED.:
[Ed.: He’s got that situation reversed 180 degrees!
Four Dead, More Than 500 Injured, After Huge Explosion at Port of Bandar Abbas in Iran (VIDEOS)
Radicalized Son of Biden’s CIA Deputy Director Reportedly Killed Fighting for Russia in Ukraine
Luigi Mangione Pleads Not Guilty in Death Penalty Case Over Insurance Executive’s Murder
[Ed.: Luigi speaks the truth! He may have shot the man in the back, but he doesn’t feel the least bit guilty about it! “Not guilty!“]
HILARIOUS: White House Issues EPIC Threat to Illegal Aliens who do Not Self Deport (VIDEO)
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JUST IN: President Trump Calls for the Person(s) Who Operated Joe Biden’s Autopen to be Jailed
