Trade War with China

now I read
US-China trade war: Trump and Xi are locked in world’s largest game of chicken, and neither can blink

• A year into the trade conflict, with multiple rounds of talks failing, Washington and Beijing show no sign of easing retaliatory measures
• Neither side can afford a trade war – and neither side can afford to back down

Updated: 11:44am, 9 Jun, 2019

not reposting the text because of the TNM reference inside

Don't say we won't pay you back in your own coin.
Let's see who is stealing from who.

China may restrict tech access in spiraling trade war with US
Published an hour ago

Key Points

• China is creating a system to protect its technology, according to state media, as the U.S. restricts the access of Chinese companies to American technology in a spiraling trade dispute.
• The People’s Daily newspaper said Sunday that the system will build a strong firewall to strengthen the nation’s ability to innovate and to accelerate the development of key technologies.

Chinese President Xi Jinping stands by national flags.
Johannes Eisele | AFP | Getty Images
China is creating a system to protect its technology, according to state media, as the U.S. restricts the access of Chinese companies to American technology in a spiraling trade dispute.

The People’s Daily newspaper said Sunday that the system will build a strong firewall to strengthen the nation’s ability to innovate and to accelerate the development of key technologies.

“China ... will never allow certain countries to use China’s technology to contain China’s development and suppress Chinese enterprises,” the main paper of the ruling Communist Party said, without directly referring to the United States.

No details have been released about what China is calling a national technological security management list. The plan was announced Saturday evening in a brief three-paragraph dispatch by the official Xinhua News Agency.

The aim is to forestall and defuse national security risks more effectively, Xinhua said, adding that detailed measures would be unveiled in the near future.

The initiative follows U.S. moves to restrict sales to Huawei Technologies and other Chinese tech firms on national security grounds.

The U.S. Commerce Department last month added Huawei to its list of entities that are engaged in activities contrary to U.S. national security or foreign policy interests.

As such, any sale of U.S. technology to Huawei will require Commerce Department approval.

China responded by saying its Commerce Ministry would develop its own list of foreign entities that it regards as “unreliable.”

This weekend’s announcement of plans for a technological security management list is clearly related to the unreliable entities list, the state-owned Global Times newspaper said in an editorial posted online Sunday.

It said the act would provide a legal basis to manage technology exports and counter American supply cutoffs to some Chinese companies.

“Since 2018, the U.S. has repeatedly drawn on its domestic law to exert pressure on Chinese high-tech enterprises,” the English-language editorial read in part. “China’s countermeasures against the U.S. require more legal weapons.”

The two largest economies appear as far apart as ever in their dispute, though U.S. Treasury Secretary Steven Mnuchin said he held a constructive meeting Sunday with the head of China’s central bank.

In a Twitter post, Mnuchin said he and Yi Gang, governor of the People’s Bank of China, had a “candid” discussion about trade issues. The post showed the two shaking hands and smiling.

They met on the sidelines of the G-20 finance meeting in Fukuoka, Japan.

Mnuchin earlier urged China to rejoin talks on the dispute that have stalled after 11 rounds of negotiations. He said no talks were scheduled, however, and that major progress on the stalemate would likely have to wait for a meeting of Presidents Donald Trump and Xi Jinping later this month.

localizer said:

Trump's ez election win on Mexico will give him the reelection. immigration is the #1 issue according to many polls. Looks like China will have to hold out for 5+ years now.

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This is unbelievable, no one from the western MSM ever mentions it.
The fact is what Trump did to the mexicans is illegal under WTO rules.
He basically threaten Mexico with tariffics, not because of trade, or economics or even national security ground.
The threaten tariffics was to change Mexico's policy towards migration!

Now I don't remember reading ftom anywhere that this is allowed under WTO trade rules. So where's all those defenders of law and order, and rule based international system sympathisers crying foul on this, I bet they will be the first ones to shout foul if this was China doing it.

Not only will they cried foul, they will also called China out to be a bully in bullying another nations soverign rights to have their ownmigration

Tam said:

You don't need copyright. You are free to use it. You can't enforce it anyway in a Chinese court.

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Here's my understanding, but we probably need an expert on this to opine.

The Free Software Foundation (based in the USA) does have a copyright on the Linux kernal, because that is how they ensure anything built with it is open sourced.

They can't stop anyone from seeing and reusing the Linux Kernal code.
But if Export Administration Regulations are changed by the US to include the Linux kernal, then technically the Free Software Foundation would be obliged to sue anyone who was on the sanctions list from using their code. Whether they would do so is another question.

And yes, it wouldn't be enforceable in a Chinese court.
But it definitely would be enforceable in a US court, and serve as a justification for the US to block Huawei Android outside of China.

At the moment, Open source non-encryption software is not subject to the Export Administration Regulations as defined by the US department of commerce
But note that in 2016, open source encryption software was subject to Export Administration Regulations.
In any case, all that is required is Trump or the Department of Commerce to rule that US based entities have to comply with sanctions laws or executive orders.

AndrewS said:

Here's my understanding, but we probably need an expert on this to opine.

The Free Software Foundation (based in the USA) does have a copyright on the Linux kernal, because that is how they ensure anything built with it is open sourced.

They can't stop anyone from seeing and reusing the Linux Kernal code.
But if Export Administration Regulations are changed by the US to include the Linux kernal, then technically the Free Software Foundation would be obliged to sue anyone who was on the sanctions list from using their code. Whether they would do so is another question.

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I can't see Richard Stallman suing anyone for using Linux. The dude is an free software fanatic!

Here's Richard Stallman and a Loongson notebook

xiabonan said:

US just delayed China tariffs to after G20

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But what difference does it make?

Unless Trump backs down at G20, nothing will change. He's just going about wondering if China and Xi will change mind. No, it won't happen. Why doesn't Trump get it?

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His neo-con team led by the likes of lighthizer wont let him

AndrewS said:

But if Export Administration Regulations are changed by the US to include the Linux kernal, then technically the Free Software Foundation would be obliged to sue anyone who was on the sanctions list from using their code.

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They're not obligated to do anything. Export controls mean you're not allowed to export something to someone; if that someone comes to possess it anyway it's not your problem so long as you didn't violate the controls by exporting it to him.

The Free Software community has had similar issues with things like the export of cryptography software in the past. Typically that was solved by putting the code on foreign servers where US rules don't apply. My guess is much the same would happen in this case.

now noticed the tweet

·

China-US trade reached 1.43 trillion yuan ($205 billion) in the first 5 months of 2019, down 9.6%, making the US the 3rd largest trade partner of China; Exports to the US fell 3.2% to 1.09 trillion yuan and imports to the US fell 25.7% to 335.2 billion yuan: official data

now I read
China's rare-earth exports slump 16 percent month-on-month in May
Source:Global Times Published: 2019/6/10 12:55:19

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China's rare-earth export slump is a reflection of the country's policy tone to control rare-earth supply in the past few years, one expert said on Monday. But he cautioned that the slump might widen in the next few months as China considers launching measures to control rare-earth exports to the US amid the trade war.

China's rare-earth exports slumped by 16 percent on a monthly basis to 3,640 tons in May, according to customs data released on Monday. On a yearly basis, China's exports of rare earths slumped by 7.2 percent in terms of quantity in the first five months this year.

The decline in rare-earth exports comes at a time when China has indicated a probable cut-off of rare-earth exports to the US as a countermeasure to US tariff increases and sanctions against certain Chinese companies in the ongoing trade war.

In a recent meeting convened by the

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on Wednesday, some domestic rare-earth companies suggested that China should strengthen management of rare-earth exports.

Wu Chenhui, an independent rare-earth analyst, told the Global Times on Monday that the rare-earth export decline in May has more to do with the country's trend to control rare-earth supply to crack down on illegal rare-earth extraction than from the China-US trade war.

"A below 20 percent fluctuation is still within the normal range," he said.

However, he predicted that the influence from the trade war might manifest in the rare-earth trade data in the next few months, as China might launch measures to largely reduce, or even cut rare-earth exports to the US as a countermeasure to US tariff increases if the trade war intensifies further.

"It should be a severe blow to the US as some of the heavy rare earths the US needs are almost only produced in Ganzhou in East China's Jiangxi Province," Wu said.

Overall, China's exports to the US slumped by 3.2 percent year-on-year to 1.09 trillion yuan ($157.6 billion), while imports from the US also slumped by 25.7 percent on a yearly basis to 335. 3 billion yuan in the first five months this year.

China's trade surplus with the US also widened by 11 .9 percent in the first five months in 2019, according to the customs data.

"The widening trade surplus shows that the US needs Chinese products for their cost performance despite the tariff increases," Wu said.

Overall, China's exports rose by 6.1 percent on a yearly basis, while imports rose by 1.8 percent in the first five months this year.

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