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The John Batchelor Show

S8 Ep805: 3. China's Economic Vulnerability and Role in the Gulf Guest: Steve Yates and Gordon Chang Summary: Yates examines how the US-led blockade of Iranian ports devastates China's manufacturing-dependent economy. He argues that Beijing's "Wizard of Oz" illusio

The John Batchelor Show

John Batchelor

Society & Culture, Arts, News, Books

4.52.8K Ratings

🗓️ 30 April 2026

⏱️ 12 minutes

🧾️ Download transcript

Summary

3. China's Economic Vulnerability and Role in the Gulf Guest: Steve Yates and Gordon Chang Summary: Yatesexamines how the US-led blockade of Iranian ports devastates China's manufacturing-dependent economy. He argues that Beijing's "Wizard of Oz" illusion of power is fading as Trump uses unconventional tactics to impose consequences. 3

Transcript

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0:00.0

I'm John Bachelor, Gordon Chang, at Gordon-Gee-Chang, my colleague and co-hosts, and we're looking at the

0:21.5

quandary of the Straits of Hormuz and the Babel Mendeb, the two choke points that are now

0:27.5

part of the understanding that the world is in trouble for inflation, for shortages, for

0:33.3

famine. I underline famine. It will come up not as fast as the oil shortages, but it's there.

0:42.6

Urea's up 50 percent since the beginning of the war, fertilizes up 30 percent. What that

0:48.5

means is it cannot be afforded by people who plant for the least among us. I emphasize that. It'll come up again and again in

0:55.7

these coming weeks. Right now, however, we ask the question about China in the Gulf because of the

1:02.9

obvious contracts with Iran, but also because China is presenting itself as a world power. Where is it?

1:10.8

We welcome Steve Yates of the Heritage Foundation.

1:14.0

And I'm going to begin by asking Gordon to ask Steve a question

1:17.4

because I don't want to get bogged down in my unhappiness

1:21.5

about that fertilizer business.

1:23.4

Gordon, you have a question for Steve.

1:25.9

Steve, President Trump is supposed to meet Xi Jinping May 14th in the Chinese capital.

1:35.9

It seems that if we're talking about all of these issues with regard to China, they are all going to be discussed.

1:43.8

But is there a problem for China in the

1:46.8

sense that we have got so many disagreements that China cannot concentrate on what it really needs,

1:52.8

which is an end to the war, and how this all plays out? How do you see it? Well, Gordon, I see

1:59.8

this as coming together very, very differently than any other presidential level engagement I've ever seen in several respects.

2:08.1

In one way, there's a really bad American pattern of in advance of these kinds of meetings to really profoundly soft pedal things that might be uncomfortable for

2:20.9

the other side. And there's some echoes of things like that that a lot of friends have pointed

2:26.1

out in recent weeks. But just in recent days, the U.S. enforcing sanctions against Chinese

...

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