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This week’s Trevor Loudon Reports on the America Out Loud Network delivered a compelling and urgent discussion, featuring national security analyst and renowned commentator Gordon G. Chang. Hosted by Trevor Loudon, the episode dove deep into the escalating tensions with China, the broader implications of global conflicts, and the moral and strategic imperatives facing the United States. Chang’s incisive analysis, rooted in decades of expertise, painted a stark picture of a world on the brink, with China’s economic woes, Xi Jinping’s precarious leadership, and the specter of war dominating the conversation. Below is a powerful recap of the episode, highlighting its key insights and warnings.
The Economic War: Trump’s Tariffs and China’s Collapse
The episode opened with a focus on President Trump’s aggressive tariffs on Chinese goods, ranging from 145% to 245% on specific products like electric vehicles. Chang, a long-time observer of China’s political and economic landscape, described these tariffs as a devastating blow to an already crumbling Chinese economy. He debunked Beijing’s reported 5.4% growth rate for Q1 2025, estimating actual growth at near zero, with deflationary pressures evident in declining consumer and producer price indices. “China is in deflation, and deflation is very difficult to get out of,” Chang warned, pointing to a collapsing property market and unsustainable debt levels from post-2008 stimulus efforts.
Xi Jinping’s refusal to pivot toward a consumption-driven economy exacerbates these issues. Instead, Xi is doubling down on exports, a strategy now thwarted by Trump’s tariffs, which effectively close off the U.S. market, responsible for nearly 40% of global consumer spending. Loudon raised the prospect of “empty shelves at Walmart,” but Chang reassured listeners that disruptions would be temporary, as trade flows redirect to countries like Japan and Italy, with Trump actively negotiating new deals. This shift, Chang argued, corrects decades of “injurious trade policy” and positions the U.S. to reclaim economic sovereignty.
The War Question: Will China Go Kinetic?
The conversation took a darker turn as Loudon posed a chilling question: Could China’s economic desperation push it toward war? Citing a Russian defector’s warning that China would strike when it could no longer profit from America, Loudon asked whether Trump’s tariffs might trigger such a conflict. Chang’s response was sobering: “There’s always a possibility of China going to war against the United States, whether they’re making money from us or not.”
Chang highlighted Xi Jinping’s precarious position within the Chinese Communist Party (CCP). Since consolidating power in 2012, Xi has dismantled the consensual political system, assuming near-total accountability for China’s mounting crises. With signs of instability in the military — a party-controlled entity — and growing dissent, Xi faces a dilemma: economic collapse could topple him, but war might rally the military and suppress internal challenges. Drawing parallels to Mao Zedong’s Cultural Revolution, Chang suggested Xi might view war as a means to secure his rule, despite the Chinese people’s reluctance for conflict.
Rather than a direct invasion of Taiwan, which Chang deemed unlikely due to Xi’s distrust of his generals, he warned of “provocations” spiraling out of control. Incidents like ship rammings off the Philippines or Japan could escalate rapidly, especially as China grows less deterred by U.S. power. “War is probable,” Chang stated, emphasizing Xi’s inability to de-escalate due to a political system that rewards hostility.
The Domestic Threat: China’s Reach Inside the U.S.
Perhaps the most alarming segment was Chang’s assertion that a Pacific conflict would not be confined to Asia. “We’re gonna get hit. No question about it,” he declared, pointing to China’s extensive network of agents and soldiers within the U.S. He cited increased incursions into U.S. military bases, drone overflights of critical infrastructure, and a suspected Chinese biological weapons lab discovered in Reedley, California, in 2022, which housed pathogens like Ebola. “The first sign of a war in East Asia could very well be Americans falling sick or dying from a mysterious disease,” Chang warned.
Loudon amplified this concern, noting the presence of Chinese nationals, including military personnel, who have crossed the U.S. border. He raised the possibility of sabotage, terrorist attacks, or even biological warfare on American soil. Chang agreed, stating that China’s control over strategic assets like the Panama Canal and its history of proxy wars — supporting Russia in Ukraine, Iran’s attack on Israel, and insurgencies in North Africa — demonstrate its willingness to strike globally. For Americans, this could mark the first sustained foreign enemy presence on U.S. soil since the War of 1812.
The Global Axis of Evil: China, Russia, and Beyond
The discussion broadened to address the interconnected threats from China, Russia, Iran, and their allies, including North Korea, Cuba, and Venezuela. Chang detailed China’s role in enabling Russia’s war in Ukraine, from purchasing sanctioned oil to providing intelligence and propaganda support. He criticized Trump’s reported strategy of wooing Russia away from China as a “reverse Nixon,” arguing that the deep alignment between Xi and Putin, forged in their February 2022 “no limits” partnership, makes such a split impossible. “They identify the same enemy, which is us,” Chang said.
Loudon and Chang expressed frustration at the U.S.’s failure to enforce sanctions that could cripple Russia’s war machine, noting that Russia’s economy is faltering, and Putin’s military is stretched thin. By supporting Ukraine more robustly, the U.S. could not only halt Russia but also deter China from further aggression. Chang argued that defeating Russia in Ukraine would “defang” China, as the two powers operate in tandem.
The episode also touched on South Korea’s precarious political situation, with a snap election on June 3, 2025, potentially elevating a pro-China, pro-North Korea candidate, Lee Jae-myung. This could destabilize the Pacific, threatening U.S. supply chains and alliances. Similarly, Loudon raised concerns about Australia’s pro-China leadership, though Chang remained more optimistic about Australia’s democratic instincts.
The Moral Imperative: America’s Role in the World
A recurring theme was the moral dimension of U.S. foreign policy. Chang condemned China’s role in spreading COVID-19, accusing Xi of deliberately allowing the virus to spread globally while locking down China, resulting in 7 million deaths, including 1.2 million Americans. He also highlighted China’s fentanyl exports, which kill 70,000 Americans annually, as deliberate “murders” rather than overdoses.
On Ukraine, Loudon and Chang emphasized America’s moral obligation, stemming from the 1994 Budapest Memorandum, where the U.S. promised to protect Ukraine’s territorial integrity in exchange for its nuclear disarmament. Failure to honor this commitment, they argued, risks nuclear proliferation as countries like Japan and South Korea seek their own arsenals. “We must not tolerate genocide,” Chang insisted, framing support for Ukraine as both a strategic and moral necessity.
A Call to Action
The episode concluded with a powerful call to action. Loudon urged listeners to pressure the Trump administration to prioritize Ukraine, enforce sanctions, and prepare for domestic threats from China. Chang, reflecting on his 2001 book The Coming Collapse of China, reiterated that the CCP’s current trajectory is unsustainable, but warned that Xi’s desperation could unleash chaos before its downfall. “We can still do this,” Chang said, emphasizing America’s economic power to weaken China, Russia, and Iran.
For Americans, the message was clear: the United States faces a pivotal moment in its history. By standing firm against this “evil axis,” America can avert global catastrophe and uphold its moral and strategic leadership. Loudon’s closing words — “God bless America!” — echoed the gravity of the stakes, urging listeners to act before it’s too late.
Where to Follow Gordon Chang
Listeners can follow Gordon Chang on X at @GordonGChang for real-time insights into these critical issues. His extensive background, from practicing law in Shanghai to writing The Coming Collapse of China, makes him a vital voice in understanding the threats facing the West.
This episode of Trevor Loudon Reports was a wake-up call, blending rigorous analysis with a passionate plea for vigilance. As Chang and Loudon made clear, the U.S. stands at a crossroads, with the choices made today shaping the future of global stability. Tune in to America Out Loud for more hard-hitting discussions that cut through the noise and confront the challenges head-on.
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