Chinese Central Committee Report on America

FROM:  The American Analysis Group of the Public Security Subcommittee of the Central Committee

TO:  General Secretary Xi Jinping

RE:  The Decline of the United States

Thank you for the opportunity to continue our important work on behalf of the Central Committee. We are honored that you allow us to contribute to the defense of China against the arrogant pretensions of the United States.

America is degenerating and weakening. It is ruled by a typical imperialist bully. He is the usual combination of ignorance, arrogance and a belief that military might is the only basis of power and influence. He insults and extorts allies. He forgets that global power is based on industrial might; he is doing everything to undermine America’s industrial predominance. We are in a battle of innovation, battle for the world’s economic future. The example of England is relevant here – they stopped innovating and declined in power follows.

America is overextended. An expensive military, burgeoning social welfare costs, a deteriorating infrastructure needing massive public investment. The result is structural budget deficits and interest expense that is consuming public revenues. Many analysts believe this cannot go on much longer without a crisis. 

Our strategy is sound. Avoid direct military confrontation. Unlike America, we do not threaten other countries or their sovereingty or their prosperity. Continue to innovate and export our advanced technology to dominate global markets. We are the largest trading partner of almost all countries. We will outflank the United States economically. They play the geopolitics of military might; we play the geoeconomics of first dominating the global economy. 

Our overall conclusion is the United States will be a weaker geopolitical and economic competitor of our country in the future. The reasons why we believe this are outlined in this covering memo.

First, a confession. In all humility, we do not understand the policies and strategies of President Trump. A continuous survey of the American and other capitalist press indicates to us that no one else understands what President Trump is doing or thinking. But we know from history that a leader who puts his personal self-interests ahead of the interests of his country will weaken his country. Trump’s erratic behavior is the major source of America’s declining power and influence in the world. 

Rational analysis has proved useless. See the related subcommittee report on the psychiatric analysis of President Trump.

Here we attempt to describe the effects of President Trump’s outbursts and irrational actions.

AMERICAN DOMESTIC POLICIES

We think American leaders do not understand their country’s self-interest. We would expect that a powerful, successful capitalist country would be sensitive to self-interest.

First energy. As we all know, America has risen to be the largest producer of fossil fuels in the world. Also the largest exporter. But unlike Saudi Arabia and other major oil and natural gas producers, America does not seem to understand that there has begun a long-term decline in demand for fossil fuels because of global warming concerns and development of substitutes at increasingly lower cost (even before reduction in pollution and carbon emission costs). America has pulled out of all international organizations monitoring and analyzing global warming and its consequences, reducing its influence in this critical area. In addition, all subsidies for the purchase of EVs and the production of renewable resources have been ended. President Trump has also forced the closing down of offshore wind turbine projects. (Our intelligence agencies say it is because Scotland refused to stop a wind turbine project that would have been visible from one of Trump’s golf courses that annoyed him when he played golf there.)

Like China, President Trump seems to believe that developing new manufacturing industries and automating older ones is critical to long-run economic growth and international competitiveness. But unlike our far-sighted leaders, many like yourself with degrees in engineering, President Trump is long on rhetoric and short on actually increasing government funds to support this effort.

Current American immigration policy is weakening a major reason for America’s scientific and technological success – immigrants. In the past, American has attracted  the “best and the brightest” from all over the world. A high percent of America’s most advanced technology companies, especially in information technology, were started or are now run by immigrants or their children. No longer. The American government is discouraging foreign students from coming to America for education. Half of their graduate students in the sciences and mathematics, in the past, were foreign students and most stayed in America. Funds for basic scientific and medical research have been cut. America’s most important recent contribution to world health is to fight obesity, a result of capitalist laziness and decadence.

We discuss American political trends in a thorough companion study. But it is well-known that America’s political system is degenerating into extremism, class confrontation, demonizing opponents and chaos. Congress does nothing and top administrators in the government seem only concerned with pleasing President Trump. Attempts to unite the country with nationalism aimed at China, like the Cold War against the Soviet Union, have failed. We have cleverly avoided the Soviet Union’s mistakes and provocations, just like we have avoided their disastrous economic policies and corrupt political system.

America seems to have forgotten that their global power and influence is based on their past industrial success. This should be obvious to such a materialist society. 

We could discuss all the failures of American society but they are too well-known and extensively documented – violence and high crime rate, drug addiction and deaths, divorce rate,  single-parent “families,” worsening education performance, addiction to mindless self-absorption, violent video games and “social media,” expensive and wasteful health care system, feeble attempts to curb pollution, ignoring the consequences of global warming, imminent crisis in Social Security financing, and massive yearly fiscal deficits feeding a growing national debt increasingly expensive to finance. And behind all this is the class conflict of an increasingly wealthy capitalist elite and a working class with stagnant or falling incomes. Trump has cleverly extorted money from the rich and played on the fears and frustrations of the working class.

America also has many strengths. They are currently ahead of us in developing artificial intelligence (AI) platforms and underlying GPU chips and data centers. We are concentrating on applications, including AI-enhanced industrial robots to make our huge manufacturing sector more productive. Many organizations around the world use our open-source (free) models to develop applications. Using analysis in the subcommittee reports, including the subcommittee on American technology, China is developing strategies to neutralize them.

One strategy we are analyzing is for Chinese companies to affiliate with American and other foreign companies through mergers, acquisitions or joint ventures. This is already beginning to happen in the EV sector. This might be a strategy to circumvent America’s ban on importing Chinese EVs.

Our economic model of the American economy predicts that America will not have the financial resources to compete with us militarily. There is little need for China to aggressively confront America directly. We are already the leader in many areas and our superiority will only get wider. The self-destructed tendencies of America will only strengthen our position in the world.

AMERICAN GLOBAL POWER AND INFLUENCE

Quite frankly, it is in this area that President Trump’s actions are unfathomable. But the consequences suggest unexpected opportunities for the increase in our global influence. 

He has insulted and alienated Canada, historically America’s staunchest friend and ally. Putting a tariff on Canadian hockey sticks? This strikes at the heart of Canadian pride and culture. It is just the latest example of Trump’s juvenile behavior. 

Canada is a major supplier of oil (and other raw materials) to the United States. It is now attempting to divert some of this oil to Asian markets. As you know, Canada has lifted tariffs on the importing of our EVs; it is hard to imagine a more direct insult to American policy. And our rising sales of Chinese EVs in Canada and Mexico will reduce sales of American cars in those two countries. Even if our EVs are banned in America, we can  outflank America by continuing to reduce American car sales in all global markets. This is an example of our overall strategy – substitute geoeconomics for geopolitics and avoid direct military confrontation with the United Stats.

We do not understand the obsession with taking over Greenland. Greenland is technically a part of Denmark, a NATO country. This seems to be part of a concerted effort to anger and alienate pro-America democratic European leaders. Perversely, President Trump and his lackeys praise and support far-right and neo-Fascist parties and leaders. Even to the extent of sending his vice-president to actively campaign on behalf of Hungary’s anti-American, pro-Russian president’s attempt at reelection (he lost). The leaders of these parties tend to support and feel comfortable with the authoritarian ruler of Russia, Putin. 

Anti-American feeling is also increasing in Europe because of America’s lack of support for Ukraine. If Russia succeeds in conquering Ukraine, Europe is threatened and NATO, also a target of Trump, may (perversely) weaken or cease to function. A recent poll of Europeans showed that a higher percent of Europeans disapproved of America than of Russia. The fear of Russia and the waning belief that America will protect them might lead to some possibilities of geopolitical advance. We pose no military threat to Europe. In the long run, Europeans leaders might see us as the counter-weight to the Russian threat.

President Trump has never given a clear explanation of the reasons for his attack on Iran. Every American document that we have obtained and analyzed over the years predicted that an attack on Iran would force them to close the Persian Gulf and the Strait of Hormuz. The longer President Trump persists, the greater the damage to the global economy. Everyone in the world is blaming him for higher petrol (gasoline) prices. As you know, we are part of an interagency group that is gaming the chances of a global recession and what it means for our country. This will hurt our exports in the short run but as a result of our predictions of the most likely impact, we have strategies in place to exploit anti-American sentiment and continue to increase our exports.

We also would like to congratulate the Central Committee for its foresight in recognizing a possible embargo or interruption of oil exports to China and building up our oil reserves, which are ten times greater than those of the United States. Our long-range planning is sure to be more effective than America’s swings from one crisis to another.

While not part of our remit, we wish to comment that America’s massive defense spending on legacy and expensive weapons systems will be less effective against modern drones and weapons systems based on information technology. There might be an opportunity for us to increase overseas sales of our own drone-based weapons systems.

One result of all these policies has been that American allies now doubt that America will provide the military protection and support it has in the past. Regional military and security ties are being strengthened without American support or participation. It is likely this will decrease American power and influence. This of course creates new opportunities to expand our geopolitical cooperation and support of other countries.

AMERICAN TARIFFS AIMED AT CHINA

Here again we do not understand what President Trump is trying to accomplish. Higher tariffs and bans on certain Chinese exports to America have always been expected if Trump were elected president. Higher tariffs and bans of some of our exports were begun by earlier presidents. What surprises us is that higher tariffs were imposed on almost all of America’s trading partners, even ones that America ran a trade surplus with. This was followed by erratic “negotiating” (extortion) and reversals of tariffs, seemingly at random. Higher tariffs were arbitrarily imposed if Trump thought someone in a country was mocking or criticizing him. Higher import prices hurt American consumers; Trump seems to have convinced Americans that foreign countries pay the higher tariffs. But Americans see higher prices and are blaming their government.

America had a naïve and static view of what would happen. America’s trade deficit in goods was the same in 2025 as in 2024. Contrary to their naïve expectations, economic weapons aimed at Chine did not hurt our overall trade. Despite fewer exports to the US, in 2025 total exports were higher than in 2024, In fact, they were at a record level and our trade surplus in goods increased. To counter criticism, Chinese companies are building manufacturing and assembly plants in many countries. 

This is a tribute to the wisdom of our country’s long-run economic development policies resulting in our economic superiority in many industries, including solar panels and electric vehicles (EVs). Having developed new markets everywhere in the world, we see these advances continuing. The Central Committee and leaders of our government’s departments have long recognized that our struggle against America is as much a geoeconomic competition as a geopolitical and military one. 

CONCLUSION

They are playing chess without knowledge or strategy, led by a player with Attention Deficit Hyperactivity Disorder. We will win by playing Go with discipline and patience., according to the dictates of our revered strategist, Sun Tzu, and the continued informed leadership of the Central Committee.

Sun Tzu teaches us “if you know your enemy and know yourself, you need not fear the results of a hundred battles.” His main message is - do not be overconfident and commit rash and ignorant offensive actions. It is a lesson Trump has never learned and it is making America weak.