On Episode 70 of War Room: Impeachment Michael Walsh, author of Rules for Radical Conservatives, joined Stephen K. Bannon, Jason Miller, and Raheem Kassam to discuss how President Trump is currently in a PSYWAR with China, given that the Chinese welsh on deals more often than not.

“Tariffs have worked for the United States from day one of the United States,” Walsh asserted. “The President understands that he’s in a PSYWAR [psychological war] against the Chinese.”

Walsh went on to explain the PSYWAR: “The Chinese are very difficult people to deal with. Speaking as a screenwriter, which is another of my occupations, I have seen more deals go down and just welshed on by the Chinese than by anybody else in the world. Their word is almost completely worthless and everybody in Hollywood knows that.”

“[The Chinese] don’t believe that contracts are binding,” Welsh continued, elaborating on why the Chinese are difficult to deal with. “‘Circumstances have changed,’ they will say. And then your contract is dead. So they are very very difficult to deal with.”

“I also think, perhaps counterintuitively, that they are a paper tiger. I don’t think their military can fight. It is way unbalanced.”

“One hundred percent correct,” Bannon concurred. “They were made up to be a twenty-foot giant by the elites in this country. This is the same thing in Britain as in the United States: the working class people were sold a bill of goods both about the EU and China. This is where the jobs got sent to, the working men get left behind, it’s completely phony. The tariffs are working. The math shows the tariffs are working.”

“Absolutely,” Walsh agreed. “The Japanese beat them twice in the 1930s. The country the size of Britain basically took over a huge half of the Asian continent. I don’t think [the Chinese] can fight; I think their social problems are almost completely intractable thanks to the Wan Chai policy.”

“The President understands he is engaging in a kind of PSYWAR with them. And when he pulls the rug out from underneath him all the time, it seriously disorients them. It’s one of the best examples of foreign diplomacy that I’ve ever seen.”

Bannon does, however, believe the two countries are far from the finish line when it comes to agreement: “I think this deal is a long way from being over. I think this is another one that President Trump wanted tested, see how it’s playing. He’s been strong on tariffs since day one; he’s got the Wall Street faction in his ear all the time. But I think we’re going to see how this plays out. The Wall Street crowd should not be high-fiving right now until we see how this thing plays out over the weekend and next week.”

He reiterates the Chinese cannot be trusted with their word. “It’s like Michael [Walsh] said, and I said yesterday on CNBC: they welshed on the Hong Kong deal; they welshed on the deal they signed with Obama in the Rose Garden in 2015 on cyber intrusions and the militarization of the South China Sea; they welshed on the Paris Accord. They’ve now got half a trillion dollars in coal fired plants they are building nonstop. They have no intentions of living up to any obligations on climate change in the Paris Accord. It’s the reason Trump backed out of the deal. They haven’t lived up to the Lighthizer deal he negotiated, they welshed on the October handshake they had in the oval office.”

“The Chinese Communist Party does not believe in any contract, circumstances are always changing. So to get it on paper and then to enforce it – I think there’s a long way between the cup and the lip here. And this has massive implications for 2020.”