Trade War with China

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Allow me to mark down some points here -
0) Trump administration is amateur and reckless.
- By product of Trump's work: it proves to the world that i) hollowness of "exception" and moral high ground some people believe US is gifted, and ii) it's still the strong one set the rules in world, and change them when it disliked (or NOT winning). It's either my way or high way!
1) As much angry on 0), I believe in this ZTE case, some China authority, or any entity you wan to call them, had NOT done their jobs - they have 1+ year since Trump took over the Whitehouse, and 5+ months since Trump started threatening trade war. And what? ZTE still got caught unprepared - simply sitting there to die? I truly hope all the competitors in my career is like them.
2) Given 1, I still wish China can make best of this lesson - take one of my favorite proverbs: "A crisis is too precious to waste."
as to your second point (designated "1)" above):
what was it, according to you, the Chinese should had done, exactly?
 

taxiya

Brigadier
Registered Member
Allow me to mark down some points here -

1) As much angry on 0), I believe in this ZTE case, some China authority, or any entity you wan to call them, had NOT done their jobs - they have 1+ year since Trump took over the Whitehouse, and 5+ months since Trump started threatening trade war. And what? ZTE still got caught unprepared - simply sitting there to die? I truly hope all the competitors in my career is like them.

Substitutions take years or decades to make, not one year or 5 months.

Therefor, it is not some Chinese authority, but the whole Chinese population not "done" our jobs, that includes you (if you are from mainland China) not doing your share of job.

Demanding result is always easier than doing the work. Instead of blaming ZTE, the authority or other Chinese not doing the job, you can join a Chinese chip company and make it work.
 
Apr 17, 2018
noticed
China slaps 179% charge on US sorghum imports
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now
China to stop investigation into US sorghum imports
Updated 2018-05-18 12:06 GMT+8
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China has decided to stop the anti-dumping and anti-subsidy investigation into imports of sorghum from the United States, the Ministry of Commerce said on Friday in a statement.

According to the statement, the investigation authorities found that the price of domestic pork has been falling recently, and many pig farmers are facing difficulties. Under these circumstances, anti-dumping and countervailing measures against imported sorghum originating in the United States are not in the public interest.

The investigation was launched on Feb. 4.

On April 17, MOFCOM handed out a preliminary ruling, which stated that the dumping of American grain sorghum on the Chinese market has dragged down the price of the product in the country and caused material injury to domestic industries.

Therefore, China started to impose anti-dumping measures by substantially raising the import deposit starting from April 18. Any enterprise which imports sorghum from the US is subject to a deposit rate of 178.6 percent.

In the latest statement on Friday, MOFCOM said the deposit collected will be returned in full.

China is the top buyer of US sorghum as well as soybeans, the US’ most valuable export to the world’s second largest economy.

The United States shipped 4.76 million tonnes of sorghum to China in 2017, worth around 1.1 billion US dollars and making up the bulk of China’s roughly 5 million tonnes of imports of the grain last year, according to Chinese customs data.
 

Tam

Brigadier
Registered Member
I am surprised to find this article from fear monger TNI.org. It is a good read though summarizes and distills what many of us already know.

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plawolf

Lieutenant General
I am surprised to find this article from fear monger TNI.org. It is a good read though summarizes and distills what many of us already know.

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Interesting read, but I would stop short at calling it good.

It’s always amusing seeing western authors (having a Chinese name does not preclude one from having a thoroughly westernised mindset. Indeed, as with religion, it’s often the new converts who are the most zealous at loudly and publically embracing the established ‘correct’ way of thinking) doing mental gymnastics trying to explain China’s unprecedented economic success by steadfastly avoiding any serious considerations of the most import factor - it’s way of governance.

This author went as far as to invent a new term just to avoid having to drill down to the true reasons, and instead assigns almost all the good work the Chinese government has done to enable and foster China’s growth to random luck.

This author does touch upon governance, but listed it last, and did so with only the most superficial and fleeting of touches, and moves on after ticking that box with indecent haste. Only giving Beijing credit for setting goals and building infrastructure. But any idiot can set fantastical goals, it’s how you go about actually achieving those goals that set China apart and where the most insightful lessons are to be learnt. But good luck seeing a western writer giving that a good objectively analysis.

China’s superb human capital did not simply magically happen. Having a vast population is no assurance of having enough people of a high enough caliber of human capital to become a keystone driver of economic success, as was the case with China. Just ask India.

China’s current human capital dividends are the fruits of decades of heavy and sustained personal and government investment in education.

There is indeed a social attitude dynamic which made this investment possible and so effective, but mere social values without good, effective and determined government policy and funding support would have at best achieved mixed results, with only the rich and well-off being able to afford world class facilities after pooling resources, whereby creating a two tier system that would have created social conflict, and also reduced the overall effectiveness of the education system by preventing the most able in society from getting the best education, with that privilege instead reserved for only the rich.

I honestly have no idea where he was going with his racial homogeneity tangent, just go to any football or other sporting derby match to see how effective racial or social homogeneity is at peventing rivalry and conflict from developing in society.

Again, China’s social stability and harmony is far more a result of determined and careful government policy and investment rather than blind luck, or some made up magical meta-power nonsense. The west loves to cite the fact that China spends more on domestic security than it does on its military to invoke a sense of an Orwellian big brother state, but it’s that huge investment in security and crime prevention that makes Chinese society so harmonious. The lack of politicians pitching people against each other to further their own personal ambitions also doesn’t hurt.

But racial composition has little if anything to do with it.

Indeed, the oddly illogical fascination with racial purity and social homogeneity feels uncomfortably like a nod and backdoor approval of the ‘Make America White Again’ lurch to the extreme right.

It’s no wonder at all that the National Interest would run this piece.
 
now I read
Expert: Four reasons China should import more from the US
Updated 2018-05-18 17:37 GMT+8
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2018 is the 40th anniversary of China adopting the policy of reform and opening up, fundamentally the idea of reforming some of the economic and social structures while at the same time opening up trade to the rest of the world .

Zhong Wei, a member of China Finance 40 Forum (CF40), said that he supports China's recent decision to increase demands for foreign imports. He indicated that he thought imports, especially ones from the US would bring benefits to both China and the US.

Zhong went on to say that clearing up mutual misunderstandings, with regards to bilateral trade, is of vital importance. One of the biggest misunderstandings surrounds the role china plays in the US trade deficit. He thinks the trade gap between China and US is caused by China's role in the global supply chain and it is unreasonable to accuse China of depriving Americans of working opportunities.

According to Zhong, there are four areas in which China could increase its imports from the US which would be mutually beneficial to both sides.

Energy

China demands more clean energy in order to shift the economic development model from “quantity-orientated” to “quality-orientated”. In 2017, China imported 400 million tons of crude oil.

The demand for clean energy in China is expected to keep rising over the next few years in order to meet the development needs. Zhong believes that the US has a huge advantage in the area compared to other countries.

With the US’s advanced technology, clean energy has been widely used in the US from work places to households. Geographically, the Pacific provides easy waterway transportation of energy from the country’s west coast to south-east China where the demand for energy is high.

As well as sales, the US would also profit from China's ability to build transport ships to carry energy and the energy receiving station built in that region. It is said that the import of energy to China is roughly valued at 200 billion US dollars this year.

Agriculture

The cooperation between China and the US regarding agriculture is promoted by China's supply-side reform. Food security is vitally important for a country. China's food production is heavily reliant on the advancement of technology. In Zhong's opinion, globalization offers another alternative to China to address the issue – imports. As an advanced country in agriculture, farmers in the US are keen to find chances to sell their food to China. Given the huge population of China, the two sides have broad prospects of cooperation in agriculture.

Manufacturing

Although China is famous for serving as the "World's Factory," in terms of quality and technology of manufacturing, it is still far from being the leader in the world, especially with regards to medicines and medical equipment. Facing the aging problem, China has realized its defects in the productions of medicines and medical equipment. In response, China has lowered the tariffs on importing medicines related to cancer treatment in an effort to serve local people.

It provides a great chance for the US, the leading country in that area, to work together with China. Zhong suggests including the imported medicines and medical equipment into China's health insurance system so that everyone is able to reap the benefits from opening-up.

Service industry

The advent of the information age gives rise to economic development in China. The service industry plays an increasingly important role in China's economy. However, in terms of scale and marketization, China's service industry remains inferior to the US. In order to update China's service industry, it would be wise to copy the success of the US. President Xi Jinping has provided China with a fresh idea to unlock its potential.

He initiated allowing foreign finance and insurance companies access to the Chinese market. As the leader in the financial sector, the US would be able to help China not only with capital but also through the sharing of its knowledge and experience.
 
now I read (it's a part of Regular Press Conference of the Ministry of Commerce (April 19, 2018)
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):

"Economic Daily: I have three questions. First, on Apr.17th, both the US and UK issued bans on ZTE. What’s MOFCOM’s comment? Second, following the ZTE ban, it’s reported that the US might forbid Alibaba to provide cloud computing service in the US or obstruct its business expansion in the US until China lifts its restrictions on US companies. What’s MOFCOM’s response? Third, MOFCOM announced anti-dumping measures on US sorghum on the afternoon of the same day. Is this a hit-back at the US?

Gao Feng: With respect to the ZTE case, we’ve made our stance clear. I’d like to reiterate that China will follow the situation closely and is ready to take necessary measures anytime to protect the rights of Chinese companies.

At the same time, we’ve also noted that the US action has caused broad market concern about US trade and investment environment. The US action targets China in appearance, but will hurt the US itself in the end. It will not only cost the US tens of thousands of jobs, but also affect thousands of related US companies. More importantly, this will undermine the confidence of the international community in the stability of US investment and business environment. It’s hoped that the US will not fancy itself smart, or it’ll only reap what it has sown.

As for the sorghum anti-dumping case, it’s an isolated trade remedy case whose investigation and determination are in strict compliance with WTO rules and Chinese law. Thank you."
 

supercat

Major
The "200 billion offer" was dubious to begin with - the Chinese government simply cannot afford to ignore the public opinion to make such an offer.

China Casts Doubt on Report of $200 Billion Trade Deficit Offer
Bloomberg News
May 17, 2018, 6:41 PM EDT Updated on May 18, 2018, 5:45 AM EDT
  • China said to offer Trump $200 billion cut in deficit
  • China foreign ministry spokesman: no offer, to his knowledge
...

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