China’s Communist Party made a flashy graphic to show everyone what it thinks about the trade war

(THIS ARTICLE IS COURTESY OF CNBC AND CHINA’S ‘PEOPLE’S DAILY’ NEWS OUTLET)

 

China’s Communist Party made a flashy graphic to show everyone what it thinks about the trade war

KEY POINTS
  • The People’s Daily, China’s official newspaper for the Communist Party, publishes a post titled “This, is China’s attitude!” on its official WeChat account.
  • The post contains a graphic with three slogans touting the country’s defiant attitude in face of trade tensions with the U.S.
  • The dispute escalated overnight with Beijing retaliating against the latest round of U.S. tariffs on Chinese goods.

The official newspaper for China’s Communist Party published a morale-boosting graphic on Tuesday touting the country’s defiant attitude in the face of trade tensions with the U.S.

“This, is China’s attitude!” the People’s Daily said in the headline of a post on its official WeChat account.

The post contained just one image, with three slogans in gold lettering printed over the red Chinese flag and a picture of shipping containers. CNBC’s translation of the Chinese phrases reads:

“Negotiate, sure!”

“Fight, anytime!”

“Bully us, wishful thinking!”

Trade negotiations between the world’s two largest economies took a negative turn last week. On Friday, the U.S. raised tariffs on $200 billion worth of imported goods from China to 25% from 10%. Beijing responded late Monday local time with tariffs of up to 25% on $60 billion worth of U.S. goods.

China steps up US criticism

(THIS ARTICLE IS COURTESY OF CHINA’S GLOBAL TIMES NEWS NETWORK)

 

China steps up US criticism

By Wang Cong Source:Global Times Published: 2019/5/14 23:13:40

FM pushes back on Washington claims, keeps options open


Photo: VCG

China on Tuesday stepped up criticism of the US as tensions between the world’s largest economies continued to escalate, blaming the US for the renewed escalation that has roiled global financial markets and saying the US has underestimated China’s resolve and ability to defend itself.

As Chinese and US officials continued to exchange harsh words, China needs to be prepared for a protracted war with countermeasures and long-term reform and opening-up efforts, analysts said on Tuesday.

Asked at a routine press briefing about the US threat to impose tariffs on $300 billion in Chinese goods, Geng Shuang, a spokesperson for the Foreign Ministry, did not mince words about China’s plan to fight back.

“When it comes to a trade war, China does not want to fight one or is willing to fight one, but China is also absolutely not afraid to fight one,” Geng said. “If someone has brought the fight to our doorsteps, we will fight to the end.”

Though the spokesperson did not specify measures, China appears to keep options open. Asked about claims in social media that China should stop purchasing US agricultural and energy goods and Boeing airplanes if it retaliates, Geng declined to comment about the report but also stopped short of issuing a denial.

US officials appear to be moving forward with a threat to impose tariffs on $300 billion in Chinese goods. They plan a public hearing on June 17.

China announced it will impose tariffs of between 5 percent and 25 percent on $60 billion in US products starting June 1 in response to the US decision to increase tariffs on $200 billion in Chinese goods.

US miscalculation

China’s retaliation on Monday might have surprised US President Donald Trump and other US officials, who appeared to think that they could use tariffs to pressure China into signing an agreement, according to Wei Jianguo, a former Chinese vice commerce minister.

“I don’t think they thought about China’s will and resolve to defend its core national interests and major concerns, especially at the final stage,” Wei said. “They also haven’t considered China’s ability to stand up to pressure… and the reaction from US [consumers and companies].”

Geng also said that some in the US might have miscalculated the situation, continued to confuse the public, and asked for unreasonably  higher prices. “So we would certainly push back against these claims,” Geng said.

US officials have claimed that China walked back on a “95 percent” done deal and blamed that for the escalation.

Citing previous cases where the US backtracked from deals, Geng said that the US cannot accuse China of walking back from its positions and promises.

Prolonged war

Though both Chinese and US officials left some room for further talks, with Trump publically calling for a meeting with President Xi Jinping at the G20 summit in Japan in June and Chinese officials calling for the US to meet China halfway, no formal plan has been announced so far, leading some to believe this could be a prolonged trade war.

To prepare for a protracted war, analysts said, China must continue to carry out reforms and opening-up measures to boost market vitality and expand overseas markets for Chinese products to reduce reliance on the US market or any other single market.

“The reform and opening-up policy has been a magic key for China to address serious issues over the past 40 years. And a magic key is what we need to deal with the situation now,” said Cao Heping, an economics professor at Peking University, noting that more concrete actions are needed.

China has opened up more sectors to foreign investors, including finance, manufacturing and healthcare, and passed a new Foreign Investment Law to offer greater market access and better protection for foreign firms. It has cracked down on intellectual property rights violations and sought to increase foreign goods.

“The trade war has not changed and will not change China’s pace for further reform and opening-up,” Liu Ying, a research fellow with the Chongyang Institute for Financial Studies at Renmin University of China in Beijing, told the Global Times on Tuesday.

Posted in: DIPLOMACY,ECONOMY

China hits back by raising tariffs on US products

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA’S SHINE NEWS)

 

China hits back by raising tariffs on US products

Xinhua

China yesterday announced that it will raise the rate of additional tariffs imposed on some of the imported US products from June 1.

China had earlier imposed additional tariffs on US$60 billion worth of US imports, the rates of additional tariffs on some of the products will now be increased to 25 percent, 20 percent and 10 percent, according to a statement by the Customs Tariff Commission of the State Council.

A total of 5,140 US products will be subject to additional tariffs of 5 percent, 10 percent, 20 percent and 25 percent starting on June 1, the finance ministry said in a statement yesterday.

The decision follows the US move to increase tariffs on US$200 billion worth of Chinese goods from 10 percent to 25 percent as of May 10.

The measure taken by the United States escalated trade frictions and violated the consensuses reached by both sides to tackle trade disputes through consultations, the statement said.

The US move damaged the interests of the two sides and did not meet universal expectation of the international community, it said.

To defend multilateral trade mechanisms and safeguard its own rights and interests, China had to adjust its additional tariffs on some of the goods imported from the United States in response to the US act of unilateralism and trade protectionism, the statement noted.

China hopes that the United States would return to the right track of bilateral economic and trade consultations, make joint efforts with China to meet each other halfway and strive to reach a mutually beneficial and win-win agreement on the basis of mutual respect.

Total Trade Stoppage With China Could Be A Good Thing For American Workers

Total Trade Stoppage With China Could Be A Good Thing For American Workers

 

I know that many people here in the U.S. will in the short term be hit financially if this ‘trade war’ with China continues. The American companies on the U.S. Stock Market has taken a hit with these tariffs the White House is talking about, I know this is hurting some American businesses like WalMart who import a huge amount from China, so be it, they need to be hurt, badly.  There is a reason for my view, I just hope you can see what I am talking about.

 

American businesses need to be hurt because of their treason toward the American Nation and her people. How many thousands of businesses have been shuttered because of companies like WalMart who for a penny or two lower price per product will buy from other countries like China (whose Leaders hate us) instead of buying from U.S. Companies who have their factories here in the U.S. giving jobs to American workers. Companies like WalMart cater to low income people yet how many of these people are poor because of these companies ‘buy foreign first’ business practices? The rich, especially the super rich like to complain about the poor as people who suck away their profits and produce nothing and how they say the poor don’t pay their fair share. If an owner of a company moves their operation out of the States thus firing all their American workers it should be the Companies Leadership who should be punished, not the workers. These companies should have to pay a tariff of about 90% on all goods they import back to the American market. Make it not worth their bottom line to close American factories and fire their American workers. In the business world everything is always about profits, the money that goes to the top is the only thing that has mattered for decades not. Most businesses and government officials should be charged with treason against the the American Flag and Her people, not profit from their demise that they themselves are causing! Rebuild America’s factories and infrastructure now, create jobs for American workers first. Our exports like grain and soy beans can easily be sold to other world markets. There is no logic besides greed that dictates us selling anything to or importing anything from other countries like China whom is trying to wipe us out. But then again, these words to you today are just the opinions of an old poet.

WalMart Is The Single Biggest American Job Killer

WalMart Is The Single Biggest American Job Killer

 

These days we hear alot about a trade war between the U.S. and China. Currently Chinese imports are hit with a %10 tariff and President Trump has been touting raising that to %25. What this would do is that it would raise the cost that American Retailers charge their own customers for these made in China items by about another %15. There is always the unrealistic thought that maybe the retailers wouldn’t pass their costs onto their customers. As I said, this is unrealistic and it will not happen, even if a company was willing to take that financial hit their stockholders would do a massive stock dump which would cost a company even more.

 

This article to you this evening is about the Walton family who oversees the direction of the WalMart/Lowes financial kingdom. WalMart buys around 60 Billion Dollars each year from China, a %25 tariff on Chinese products would cost the company about 9 Billion Dollars a year at their current purchasing levels. Have you ever gone into a WalMart store and checked where the product tag says it was made? Outside of food items of which they purchase a great deal of from Mexico, it literally seems like most everything in their stores are made in China or from some other third world nation who abuses the hell out of their employees like in Indonesia, Vietnam and Thailand. Just think if WalMart actually did buy American products how many millions of jobs that would create here in the States. Most all of us know by now that most everything you see with a made in China tag on it you know that the product has almost no quality to it at all. Your buying junk, but supposedly your getting a ‘discounted’ price.

 

Another thing that People should take into account when they choose to buy made in China products is that we, just like WalMart and Target (the second biggest buyer of Chinese products) are handing their Military billions of dollars of weapons each year. Just think about it for a moment, if you buy your products at a WalMart most likely you are cutting the throats of every person in America. You give China many billions of dollars worth of weapons (which they do not buy from us) and you are cutting the throats of millions of would be American job holders. I’m just saying, think about what you are doing to all of the world when you buy this made in China junk.

 

 

China makes statement of US planned measures to raise tariffs

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS PAPER ‘SHINE’)

 

China makes statement on US planned measures to raise tariffs

Xinhua

China on Wednesday expressed regrets over the planned measures by the United States to raise tariffs on imported Chinese products, saying escalating trade frictions is against the interests of the two peoples as well as people of the world.

“China deeply regrets this, and will be forced to take necessary countermeasures if the US side puts the tariff measures into effect,” says a statement released on Wednesday.

The United States announced on Wednesday that it would raise tariffs on US$200 billion worth of Chinese goods from 10 percent to 25 percent as of May 10.

China-U.S. trade war worsens, the trade deficit increases

(THIS ARTICLE IS COURTESY OF THE BROOKINGS INSTITUTE)

 

As the trade war worsens, the trade deficit increases

David Dollar

Editor’s Note:David Dollar unpacks the effects of a continued trade war on the economies of China and the United States. If such protectionist measures stay in place long enough, he notes, global value chains will adjust. In that case, U.S. trade deficit will shift away from China and toward the rest of Asia and Europe, but the overall U.S. trade deficit will not change in any significant way. This piece originally appeared on The Hill.

The trade war that the U.S. has unleashed on China continues to ratchet up. The next round of 25-percent tariffs on $16 billion of imports from China will go into effect Aug. 23.

China is committed to retaliate and will implement its own 25-percent tax on $16 billion of imports from the U.S. As the tit-for-tat escalation continues, it is impossible for China to match the U.S. dollar-for-dollar because it imports so much less from the U.S. than it exports.

The next round threatened by the U.S. will cover $200 billion in additional imports. The Chinese announced retaliation will hit a much smaller volume, $60 billion of imports. Still, we are moving toward complete taxation of trade in both directions.

The direct effect of these measures on the Chinese economy is small so far. China’s exports in July were up 12.2 percent over the prior year, ahead of market expectations. The International Monetary Fund’s (IMF’s) updated forecast for China’s GDP growth this year is 6.6 percent, above the target for the year.

Indirect effects are harder to measure but are arguably larger. China began the year in a tightening cycle, trying to rein in the excessive credit growth of the recent past. The regulators were determined in particular to reduce the shadow banking sector and to bring more financial activity back into the formal banking system.

Investment growth has been slowing all year, and the stock market peaked and started falling in January, well before the trade war got serious. The protectionism from the U.S. has contributed to the pessimistic mood in China. Investment growth was practically nil in July, and the Shanghai market is now down 24 percent since the January high.

The July data also show some easing of the tight money policy, though no let-up in the campaign against shadow banking. This suggests that the authorities are worried about the impact of the trade war on growth, but it is also a reminder that China has tools at its disposal.

Aside from monetary easing, the government is also pursuing some modest additional fiscal stimulus. China can afford to spend more public money on education, health and environmental clean-up and can use the fiscal adjustment to its advantage.

Another obvious tool is the exchange rate. Since April, the U.S. dollar is up 8 percent against a basket of major currencies. The Chinese yuan has more or less followed the same trend: It is down 9 percent against the dollar over this period.

This is one reason that China’s exports were buoyant in July. Too much depreciation could set off financial panic, but depreciating against the dollar in line with the other major currencies in the world makes sense in the current environment.

China’s Ministry of Commerce announced this week that Vice Minister Wang Shouwen will visit Washington, D.C. in late August for talks with Treasury Under Secretary David Malpass. It is good that the two sides are talking, but there is not likely to be a negotiated settlement anytime soon.

The Chinese side is confused about what the U.S. wants. It feels that near-agreements were reached twice before only to have the U.S. pull back. What China is ready to offer is clear:

  • It will agree to some big headline numbers for purchases of agricultural products and energy, which is more of a publicity stunt than a policy change;
  • it is already committed to opening some important markets in China, such as automobiles and financial services; and
  • it would agree to some general language about improving intellectual property rights protection and avoiding forced technology transfer.

These talks at the vice minister level should clarify positions, but an end to the trade war will likely require higher-level talks and ultimately a meeting between Presidents Trump and Xi. The next time that the two will meet, barring an exceptional summit, would be at the Group of 20 summit at the end of November in Buenos Aries.

An important obstacle to reaching a settlement is that the U.S. administration has put a big focus on trade balances, and those are very hard to change.

Because of the large fiscal stimulus, the U.S. economy is growing rapidly. Interest rates are rising, as is the value of the dollar. It is natural in this situation for the U.S. trade deficit to widen.

In the first half of the year, the overall U.S. deficit in goods was up 7 percent. The deficit with China was up 9 percent and 16 percent with Europe. Those trends will almost certainly continue in the second half of the year. Protectionism aimed at China will not have any big effect on the overall U.S. deficit.

The protectionism should eventually reduce imports from China, but it will also reduce U.S. exports and increase U.S. imports from other locations. Much of what the U.S. imports from China are intermediate products used by U.S. firms to be more competitive.

Taxing these will naturally result in some lost business for U.S. firms, both in the domestic market and in export markets. If the protection stays in place long enough, global value chains will adjust. Some labor-intensive final assembly will shift to countries like Vietnam in order to avoid the 25-percent tax.

Suppliers such as Japan, South Korea and Taiwan will retain more production at home rather than off-shoring to China. China is likely to remain the center of the Asian production hub, but will concentrate even more than it does now on intermediates and less on final goods for the U.S. markets.

All of this will shift some of the trade deficit away from U.S.-China toward larger trade deficits with the rest of Asia and Europe. But the overall U.S. trade deficit will not change in any significant way.

China to slap additional tariffs on US

(THIS ARTICLE IS COURTESY OF THE SHANGHAI ‘SHINE’ NEWS AGENCY)

 

China to slap additional tariffs on US

Xinhua

China has decided to impose additional tariffs on imported products from the United States worth about US$16 billion, according to an official statement released yesterday.

Approved by the State Council, its Customs Tariff Commission has decided to impose additional duties of 25 percent on the US$16 billion of US products after making proper adjustments to the second part of a list of the products subject to the tariffs. The additional duties will take effect on August 23.

Commenting on the decision, a spokesman for the Ministry of Commerce said it is totally unreasonable for the US to put domestic laws above international laws time and time again. To defend its legitimate rights and interests and the multilateral trade system, China was forced to take necessary countermeasures, said the spokesman.

The customs tariff commission said the list has been appropriately adjusted after taking into account the advice of related government departments, industry associations and enterprises to best protect the interest of domestic consumers and companies.

The commission also published a final version of the second part of the list on the website of the Ministry of Finance.

In June, the customs authority unveiled a list of products from the US worth US$50 billion that will be subject to additional tariffs in response to US announcement to impose additional duties on Chinese imports.

Additional duties on the US products in the first part of the list, worth US$34 billion, came into force on July 6.

G7 summit: War of words erupts between US and key allies

(THIS ARTICLE IS COURTESY OF THE BBC)

 

G7 summit: War of words erupts between US and key allies

Photo from the G7 summit of the leaders, tweeted by the German government on 9 June 2018Image copyrightAFP
Image captionThe final communique had been intended as a face-saving agreement after a bad-tempered summit

A war of words has erupted between the US and its G7 allies, hours after the group had put on an apparent show of unity at the end of a tense summit.

US President Donald Trump and two of his advisers lashed out at Canadian PM Justin Trudeau, accusing him of engaging in “bad faith diplomacy”.

Germany’s Angela Merkel said Mr Trump’s decision to reject a joint communique was “sobering” and “depressing”.

That statement had sought to overcome deep disagreements, notably over trade.

In recent weeks, trading partners of the US have criticised new tariffs on steel and aluminium imports imposed by the Trump administration.

So how did the latest spat unfold?

In a news conference after the summit, the Canadian leader reasserted his opposition to the US tariffs, and vowed to press ahead with retaliatory moves on 1 July.

“Canadians are polite and reasonable but we will also not be pushed around,” he said.

Media captionTrudeau: “I don’t want to hurt American workers”

Mr Trump responded by tweeting en route to his next summit, in Singapore, that he had instructed US officials “not to endorse the communique as we look at tariffs on automobiles”.

He said the move was based on Mr Trudeau’s “false statements… and the fact that Canada is charging massive tariffs to our US farmers, workers and companies”.

His top economic adviser, Larry Kudlow, and trade adviser, Peter Navarro, then took to the Sunday morning news shows to further attack Mr Trudeau.

“He really kind of stabbed us in the back,” Mr Kudlow said, while Mr Navarro said: “There is a special place in Hell for any leader that engages in bad faith diplomacy with President Donald J Trump and then tries to stab him in the back on the way out the door.”

Canada’s Foreign Minister Chrystia Freeland responded by saying Mr Trump’s argument for imposing tariffs on Canadian steel and aluminium was “absurd and frankly insulting to Canadians”.

Mr Trump has cited national security as his reason, telling a news conference on Saturday that “to have a great military you need a great balance sheet”.

Canada, she said, is “the closest and strongest ally the United States has had. We can’t pose a security threat to the United States and I know that Americans understand that”.

Other G7 partners also seemed stunned by Mr Trump’s reaction, and pledged to support the communique.

Media captionWho left their mark on President Trump at the G7 summit?

French President Emmanuel Macron said international co-operation could not be “dictated by fits of anger and throwaway remarks”.

“Let’s be serious and worthy of our people,” a statement from the French presidency said. “We make commitments and keep to them.”

What is in the joint communique?

In the communique after the summit in La Malbaie, Quebec province, the group of major industrial nations – Canada, the US, the UK, France, Italy, Japan and Germany – had agreed on the need for “free, fair, and mutually beneficial trade” and the importance of fighting protectionism.

Other agreements reached include:

Mr Trump’s twitter attack on Mr Trudeau came minutes after the communique had been published.

What are the tariffs?

On 1 June, the US imposed a 25% tariff for steel and 10% for aluminium on imports from the European Union (EU), Canada, and Mexico. Mr Trump said the move would protect domestic producers that were vital to US security.

The EU then announced retaliatory tariffs on US goods ranging from Harley-Davidson motorcycles to bourbon. Canada and Mexico are also taking action.

Media captionDairy wars: Why is Trump threatening Canada over milk?

What is the G7?

It is an annual summit bringing together seven major industrialised nations which represent more than 60% of global net worth between them.

Economics tops the agenda, although the meetings now always branch off to cover major global issues.

Russia was suspended from the group – then called the G8 – in 2014 because of its annexation of Crimea from Ukraine.

On Friday, Mr Trump made a surprise call for Moscow to be readmitted but German Chancellor Angela Merkel said other members were against the idea.

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US & Canada

China says US trade move contrary to bilateral consensuses

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS AGENCY ‘SHINE’)

(COMMENTARY: FROM AN AMERICAN CITIZEN TO THE GOVERNMENT AND TO THE PEOPLE OF CHINA, THIS POLICY FLIP FLOP IS 100% FROM THE IGNORANT EGOMANIAC BRAIN OF THE STUPID ASS WHO SITS IN THE OVAL OFFICE IN THE WHITE HOUSE, THIS IS NOT THE WISHES OF THE AMERICAN PEOPLE NOR OF AMERICAN BUSINESSES.)(OLDPOET56)

 

China says US trade move contrary to bilateral consensuses

Xinhua

China’s Ministry of Commerce said yesterday that the US trade statement is contrary to the consensuses the two sides have previously reached in Washington.

Calling the White House statement as unexpected and within expectation, the ministry said whatever measures the United States will take, China has the confidence, capability and experience to defend the interests of Chinese people and the core interests of the country, the ministry said on its website.

Earlier yesterday, the US said it will continue pursuing action on trade with China.

By June 15, Washington will release a list of US$50 billion worth of Chinese goods that will be subject to a 25 percent tariff, the White House said in a statement.

By June 30, the US will announce investment restrictions and “enhanced export controls” for Chinese individuals and entities “related to the acquisition of industrially significant technology,” it said.