Trade War with China

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plawolf

Lieutenant General
It is futile effort trying to appease or curry favor with the European. If it has to be, China has to follow its own path. Unlike few years back the Chinese economy is less dependent on trade . More and more consumption is the driving engine of Chinese economy coupled with investment
The European won't help China because China is eating their lunch and with every year the technological gap is narrowing and China is less beholden to European interest
The idea that China need Europe is bull During 60 and 60's China was completely cut off from the world trade and they grow nicely and lay the foundation for the recent prosperity. If it not for the Mao's folly of GLF and CR Chian would be probably now one of the richest country int he world


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Typical western entitled arrogance. They see all the money China is putting into OBOR and thinks they are automatically entitled to a big piece of that as their god given right.

They set stupid, political and ideological driven rules barring their own companies from operating in most of the countries the OBOR runs through, and then gets their panties in a twist that Chinese companies are doing all the work?

Besides, until they start putting their money where their mouth is and start contributing to OBOR financially, they absolutely shouldn’t get any say on how the money for that project is being spent. Zero investment equals zero say, simples. And if they only put in a token amount, they should only get a token say.

How would they like it if China started telling the EU how to spend its own money?

But the EU is easy to play, get one country to disagree and it can’t get anything done.

China should and will do things as they like, if the EU doesn’t like it, they can do whistle and have their endless, meaningless debates while China actually gets things done.
 

taxiya

Brigadier
Registered Member
Although that article by "handlesblat" sounds extremely stupid, I think we should leave "Europe" out of this discussion unless it is related to the current "US China trade war".

Remember, the world is full of hallucinating self-righteous I-want-to-eat-your-cake morons, one can not be bothered to take on them every time, everywhere. That is distraction.
 

taxiya

Brigadier
Registered Member
regarding the "handlesblatt" article, it is only to say "one get profit from one's investment", Nobody is going to drive the car when one doesn't own the car.
 
now I read
China supports free trade, to push forward process of trade liberalization: ambassador
Xinhua| 2018-04-18 21:44:57
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China supports free trade and will push forward trade liberalization, while rejecting the unilateral moves by the U.S. against free trade, Chinese Ambassador to Egypt Song Aiguo told Xinhua in a recent interview.

Song said that the world is "big enough for free trade" and China has many friends to carry out fruitful joint projects of mutual cooperation in various fields.

"China is ready to work with other states to continue the process of trade liberalization and enhance investment cooperation," Song said.

He made the reamarks on the sidelines of the two-day China-Africa Cooperation Zones Symposium that started in Cairo on Tuesday under the theme of "Results and Experiences."

The ambassador criticized the unlateral measures taken by the U.S. recently to impose additional tariffs on Chinese imports, which could lead to a trade war between the two leading economies, that could threaten the global economic stability.

"The U.S. unilateral measures against free trade will not only affect China's interests, but will affect those of other countries as well as the stability of global economy," Song said.

The U.S. government announced in early April a proposed list of imported Chinese products, worth 50 billion U.S. dollars, to impose 25-percent additional tariffs, under the pretext of punishing China for alleged violation of U.S. intellectual property.

In response, China unveiled a list of imported U.S. products worth 50 billion dollars that will be subject to higher tariffs, including soybeans, automobiles, aircraft and chemical products.

"We are not afraid of the economic war that the United States is trying to wage against us. We reject the U.S. unilateral measures and we support free trade," Song said.

He noted that China has set up partnerships with many developing states through economic blocs, summits and forums, including the BRICS summit comprising Brazil, Russia, India, China and South Africa, the Forum on China-Africa Cooperation (FOCAC), and the Belt and Road Initiative, to promote multinational economic and trade cooperation.

Speaking at the opening session of the China-Africa Cooperation Zones Symposium, Song said Tuesday that China will give the FOCAC summit, due in September in the Chinese capital Beijing, "a new push for partnership with Africa to enhance cooperation in all fields."
 
now I read
Spotlight: U.S. decision on ZTE stokes up trade tensions with China
Xinhua| 2018-04-18 05:16:06
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The U.S. Department of Commerce announced a market-shaking decision on Monday to deny export privileges against ZTE, a leading Chinese telecom equipment company, stoking up the tension of trade relations between the two countries.

This was only the latest and one of the many cases of Chinese companies being sanctioned by the United States over the past years. The Trump administration has been accusing China on trade surplus, intellectual property protection and other issues.

China's biggest smart phone producer Huawei still can't make a meaningful entry into the United States after decades of efforts, as AT&T and Best Buy rejected or stopped selling Huawei phones weeks ago due to pressure from the administration in the name of "national security" concerns.

"National security" has become a magic tool for the world's biggest developed free market economy to restrict businesses of Chinese companies.

While asking China to further open its financial sector, which China did do so gradually based on the reality of its domestic economic development and announced other significant moves recently, the U.S. government blocked China's Ant Financial's acquisition of MoneyGram in January, due to "national security" concerns.

"We are disappointed in the termination of this compelling transaction, which would have created significant value for our stakeholders," said Alex Holmes, chief executive officer of MoneyGram, noting the geopolitical environment has changed considerably since nearly a year ago.

Due to the same reason, China Zhongwang Holdings Limited, an aluminum product manufacturer listed in Hong Kong, also failed to merge U.S. aluminum firm Aleris Corporation, although afterward the U.S. government announced a 10-percent tariff on imported aluminum products, claiming to force foreign companies to build plants in the United States and bring jobs back.

Even a Chinese firm of agriculture and animal husbandry had to drop the planned acquisition of U.S. supplier of breeding pigs Waldo Farms, a deal of 16.5 million dollars. Still, it is "national security" concerns.

In comparison, American companies have profited to great extent from the Chinese market during China's opening up and reform drive in the past four decades, thanks to improving business environment and preferential taxation policies specially designed for foreign investments.

In its fiscal year of 2017, Apple, the U.S. biggest cell phone maker, sold 44.8-billion-U.S.-dollar products in China, its largest single market overseas.

According to the latest annual report released in September 2017 by the Committee on Foreign Investment in the United States (CFIUS), a multi-agency panel that reviews foreign purchases of American companies, China had led foreign countries represented in the CFIUS reviews for the fourth consecutive reported year (2012-2015).

Given the surging number of transactions that had been scrutinized by CFIUS and the economic environment between China and the United States in 2016 and 2017, there is no doubt that China will remain on top of the list for a six-year straight streak.

However, such opaque and unfair scrutiny by CFIUS has become a main hurdle for Chinese companies to invest in the United States.

According to a report jointly released by the National Committee on U.S.-China Relations (NCUSCR) and the Rhodium Group last week, Chinese direct investment in the United States fell by more than 35 percent in 2017 due to CFIUS' reviews and China's outbound investment regulatory.

The value of newly announced Chinese acquisitions in the United States also plunged by 90 percent from a year earlier and the impact from such decline in investment had been felt on the local level, according to the report.

Moreover, the Trump administration and U.S. lawmakers are seeking tighter scrutiny of Chinese investment in the United States through a significant expansion of the CFIUS.

This happened at a time when the United States is blaming China for its vast trade deficit while narrowing the door for Chinese investment.

China argues that the Chinese people's hard work is part of the reason for China's trade surplus with the United States. A number of facts such as globalization, global division of labor and U.S. dollar's international reserve currency status also play important roles for the surplus.

When addressing trade issues, the United States seldom mentions its surplus with China in service sector, and never mentions the U.S. government export controls over China.

It is unfair that on one hand the United States restricts the export of high-tech products to China, while on the other it doesn't want China to produce them by itself either.

Analysts have said that the U.S. punitive measures taken recently against China are not about trade, but about the impediment of China's development.

China is a big developing country, but it's no wonder the country wants to become a developed one, Nobel Prize-winning American economist Joseph Stiglitz said at a panel discussion last week.

In the increasingly globalized world, any trade protectionist measures could turn out to be a double-edged sword.

The latest U.S. decision on ZTE may hit the Chinese company hard, but the first casualties are its U.S. suppliers. The stock price of ACIA plunged 35.97 percent on Monday, that of Oclaro dropped 15.18 percent, and Lumentum fell by 9.06 percent.
 

Hendrik_2000

Lieutenant General
US objection to China made 2025 is absurd.Why should one country interfere in the development of other country. The finger pointing of subsidy is also straw man argument because US government research organization made technology available to private company on the cheap. EEU subsidized Airbus for years If that is not subsidy I don't know what.
It is as if in the running competition one of the slower runner can't run that fast so he ask the other faster competitor to slow down so that he can win. Does not make sense. No sane person or country will agree to that
The proper way would to give the weaker runner better coach,motivation,training etc

Beijing Forges Ahead With 'Made In China' Policy, Targeted By Proposed U.S. Tariffs
April 17, 201812:46 PM ET
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gettyimages-679015194-8b6a46c192f73bd20698570dfb617ce957718ea4-s1200-c85.jpg


A Commercial Aircraft Corp. of China Ltd. C919 aircraft stands under assembly in Shanghai in 2017. Proposed U.S. tariffs take special aim at the "Made in China 2025" plan, which supports development of advanced technologies in fields such as artificial intelligence, robotics, biopharmaceuticals, new energy vehicles and aviation.

After three rounds of tariffs and counter-tariffs, both actual and proposed, the U.S. and China appear deadlocked, with the possibility of a trade war still looming. China remains defiant in the face of U.S. threats, while the U.S. appears indifferent following China's pledges to open its markets.

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"China will not enter into any negotiations while under threats from the U.S.," Chinese Commerce Ministry spokesman Gao Feng told journalists last Thursday. He added that the U.S. has not shown any sincerity about holding talks.

ap_18100194323191-9097f7667c7d0679ffe122eca99b917f0360e4e3-s500-c85.jpg

Chinese President Xi Jinping promised in a speech on April 10 to cut auto import taxes, open China's markets further and improve conditions for foreign companies.

Li Xueren/Xinhua/via AP
Last Tuesday, Chinese President Xi Jinping
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to open markets, protect intellectual property and increase imports. The following day, China's central bank governor pledged to open the country's financial sector to foreign investment. But China insisted this had nothing to do with ongoing trade frictions with the U.S.

There was no immediate reaction from Washington, other than a presidential
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in which Donald Trump thanked Xi for his pledges.

China's commerce ministry, meanwhile, denied that Xi's remarks represented concessions to the U.S. — or that any are warranted.

China has been particularly unapologetic about its strategic industrial policy, dubbed "Made in China 2025." Proposed U.S. tariffs take special aim at this policy, which a recent
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by the U.S. Trade Representative describes as discriminatory toward U.S. firms and a threat to U.S. trade.

The Made in China plan, announced in 2015, calls for China's government to funnel billions of dollars into developing and acquiring advanced technologies in fields such as artificial intelligence, robotics, biopharmaceuticals, new energy vehicles and aviation.

The Trump administration sees the policy as another effort to steal U.S. technology and push American firms out of the Chinese market. But, says
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, an expert on China's technology policies at Zhejiang University in Hangzhou, "You can't just tell China that, 'No, you're not allowed to continue your technological development.'"


Dong Yang, the vice chairman of the China Association of Automobile Manufacturers, and other Chinese business leaders see upgrading industry as a natural part of any country's economic development. The tariffs look to them like just another U.S. effort to thwart China's rise.

"Why should one country take aim at another country's policy to develop its own economy?" Dong says. "Just mind your own business."


The Made in China plan also calls for Chinese companies to control 70 percent of the domestic market in key sectors by the year 2025. The idea is to help China transition from making labor-intensive, low-profit goods such as toys, apparel and furniture, into more lucrative, capital- and technology-intensive products.

"We will promote China's industries' progress toward the middle and upper reaches of the global value chain, and foster groups of world-class, advanced manufacturers," Xi told delegates to the 19th National Congress of the ruling Communist Party last November.

Beijing Institute of Technology economist Hu Xingdou says the policy might help some Chinese firms. "Or it might create huge production overcapacity and waste," he warns. "It may also tempt many companies to try to trick the government into giving them subsidies."

Hu cites state media reports (some of which were later refuted by other state media) that most research and development funding in China never makes it to the intended projects, and is instead often wasted on unnecessary meetings and travel. The problem, Hu says, is that China lacks a modern R&D system with effective systems of evaluation and oversight.

Another concern is that government subsidies lure so many firms into certain industries that it creates a glut of products, which China then dumps on international markets and crashes prices, as has been the case with steel and
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.

"To the extent that [Made in China 2025] is coercive, to the extent that it is inconsistent in dramatic ways with market-based principles of competition, it fundamentally distorts the world economy," argues
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, partner-in-charge of the U.S. law firm WilmerHale's Beijing office.

China's vice trade minister Wang Shouwen rejected U.S. criticisms at a recent press conference.

"Made in China 2025 is transparent, open and non-discriminatory," he said. "Foreign and Chinese companies, public and private-sector companies can all participate."

Wang added that his ministry has reviewed the Made in China plan to ensure its strict compliance with World Trade Organization rules. And, he said, China has no intention to monopolize domestic markets.

"Some of the targets in our plan are intended as forecasts or guidance," he insisted. "They're not mandatory requirements."

Fuller says that U.S. tariffs aimed at Made in China 2025 are not likely to be very effective, partly because China exports very few hi-tech products to the U.S.

Most Chinese tech firms, such as electric car makers, are not yet mature enough to compete in U.S. markets. Others, like telecom giant
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by the U.S. government on national security grounds.

For now, says Fuller, the focus of Made in China 2025 "is really quite domestic, and that's going to create a lot of business opportunities for these firms in China."

When it comes to the trade spat with the U.S., he says, "I don't see anyone here really quaking in their boots."


Instead, Fuller suggests that the U.S. would do better to come up with its own industrial policy and put more money into cutting-edge scientific research.

"The U.S. really has to look at itself," he says, "and decide where its priorities are to stay competitive."
 
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now I read
Spotlight: U.S. decision on ZTE stokes up trade tensions with China
Xinhua| 2018-04-18 05:16:06
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now
U.S. will hurt itself with action on ZTE: MOC
Xinhua| 2018-04-19 13:18:19
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China's Ministry of Commerce (MOC) said Thursday that the U.S. action against China's leading telecom equipment maker ZTE Corp will damage itself.

"The action targets China, however, it will ultimately undermine the United States itself," MOC spokesperson Gao Feng told a press conference.

The United States will lose tens of thousands of job opportunities, while hundreds of related U.S. enterprises will also be affected, he said.

The act has fueled widespread concerns over U.S. investment and the business environment, Gao said. "We hope the United States doesn't fancy itself clever, or it will only reap the bitter fruits from what it has sown."

The U.S. Department of Commerce has imposed a denial of export privileges against ZTE Corp for alleged violations of the Export Administration Regulations.

Gao said the U.S. side should not underestimate China's determination.

"If the United States attempts to curb China's development and force China to make concessions by sticking to its unilateral protectionism at the cost of harming the interests of Chinese and American enterprises, it miscalculates," he said.

China's resolute determination and confidence in defending the interests of China and its people will not swerve, he said. "We will fight resolutely."
 

Equation

Lieutenant General

When it comes to the trade spat with the U.S., he says, "I don't see anyone here really quaking in their boots."


Instead, Fuller suggests that the U.S. would do better to come up with its own industrial policy and put more money into cutting-edge scientific research.

"The U.S. really has to look at itself," he says, "and decide where its priorities are to stay competitive."

Because it is much easier to blame than to create. Beside the election is coming up, therefore got to blame something for the poor economic performance upon somebody or some nation.;) The gullible uneducated audience and voters will eat it up.
 
now I read
Chinese ambassador urges U.S. to abandon Cold War, zero-sum mentality
Xinhua| 2018-04-20 16:44:43
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Chinese Ambassador to the United States Cui Tiankai has urged Washington to abandon its Cold War, zero-sum mentality to maintain stable bilateral ties for the benefit of both sides and the world at large.

MAKING RIGHT CHOICES

In two recent speeches delivered at events promoting bilateral exchanges, the ambassador said the two countries have reached an important moment to make choices for the world's most important bilateral ties.

With tremendous opportunities and challenges ahead, "the prospects (of China-U.S. relations) will very much depend on the choices we make today," said Cui at an event held Tuesday by the Fairbank Center for Chinese Studies at Harvard University.

He urged the United States to abandon its Cold War, zero-sum mentality which could undermine bilateral relations.

"If we have a more positive and cooperative mindset, we could see clearly the emerging trends in the world, seize new opportunities, and turn challenges into opportunities," he said. "That will bring about real benefits for the people of our two countries."

Earlier at the 2018 Penn Wharton China Summit in Philadelphia, Cui said in a speech that the two countries will usher in the 40th anniversary of the establishment of diplomatic relations.

Cui pointed out that China's choice for reform and opening-up, and the U.S. decision to normalize relations with China some 40 years ago were both "great historical choices," which have brought tangible benefits to the two countries and two peoples.

At Harvard, he reiterated the opinion, saying "40 years of diplomatic ties and cooperation have served the interests of both countries quite well."

"In addition to all the bilateral benefits we have gained from this relationship, we have also seen its positive impact on the broader region of the Asia-Pacific and the world," he added.

Cui said China and the United States share common interests and responsibilities in maintaining global peace and stability and promoting global economic growth and prosperity. "This is our responsibility to the international community," he said.

TACKLING TRADE DISPUTES

In Philadelphia, Cui said the point of view held by some Americans that the United States has suffered a loss in trade with China is "untenable."

The bilateral trade volume was almost negligible when then U.S. President Richard Nixon visited China in the 1970s, but it grew to over 580 billion U.S. dollars last year, and two-way investment is also increasing, he said.

He added that the current large trade deficit is attributed to many factors, including America's economic structure, low savings rates and high-tech export restrictions.

As regards the recent escalating trade tensions between China and the United States, Cui warned at Harvard that a trade war serves no meaningful purpose and will only destroy trade itself.

A trade war would not only harm both economies, but also poison the atmosphere of the overall China-U.S. relations, undermine mutual confidence, and hurt global growth, he said.

"We are against any trade war. We believe any dispute should be worked out through dialogue and consultation," said the ambassador.

However, if the United States insists on initiating a trade war, China will retaliate, said Cui.

Trade tensions have been escalating in recent months, as Washington threatened to slap additional tariffs on Chinese goods worth 100 billion dollars, after proposing steep tariffs on Chinese imports worth 50 billion dollars.

The International Monetary Fund (IMF) also warned this week that the prospect of trade restrictions threatens to undermine confidence and derail growth prematurely.

IMF Managing Director Christine Lagarde on Thursday urged policymakers to steer clear of all protectionist measures amid rising trade tensions between the United States and its major trading partners.
 
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