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June 22, 2018

China’s ZTE expected to take last step to lift ban, says official

ZTE Corp is expected to deposit US$400 million in an escrow account in a US bank in the “next couple of days,” the last step the Chinese company must take before a ban on US suppliers can be lifted, said a US Department of Commerce official on Friday. ZTE, which makes smartphones and networking gear, agreed to pay a US$1 billion penalty and put US$400 million in an escrow account as part of a settlement agreement reached on June 7 to regain access to the US market, which it needs...
June 22, 2018

Chinese holiday island to unlock Facebook, Twitter and YouTube for foreign visitors

Visitors to China’s tropical island of Hainan will have access to popular social media platforms like Facebook, Twitter and YouTube that are banned elsewhere in the country, as part of a new plan drawn up by the local authorities to boost tourism. The provincial government said also that it expects to hire 50,000 English-speaking foreign workers – many from the Philippines and other Southeast Asian countries – and buy 2,000 minutes of advertising time a year on...
June 22, 2018

Which American CEOs did Xi Jinping meet in Beijing? UPS, Pfizer, Goldman all on the list

American executives from the likes of UPS, Pfizer, Cargill, Prologis and Goldman Sachs were at a gathering in Beijing when President Xi Jinping called for multinationals to help fight “protectionism” and told them China would remain open for business, according to images in state media reports and on social media. US business delegates at the Global CEO Council round-table summit on Thursday included David Abney of UPS, Pfizer’s Albert Bourla, Arnold Donald from Carnival,...
June 22, 2018

Is Donald Trump’s trade team ready to reach out to Xi Jinping’s right-hand man Wang Qishan for tariff truce talks?

Some White House officials are trying to restart talks with China to avoid a trade war before US tariffs on Chinese products take effect July 6, three people familiar with the plans said, setting up a battle with others in the administration who favour a harder line. Staff of the National Economic Council (NEC) have contacted former US government officials and China experts in recent days to gauge chances for high-level talks in the next two weeks, the people said on condition of anonymity to...
June 22, 2018

Chinese President Xi Jinping condemns trade barriers amid tariff row with the US

Chinese President Xi Jinping on Thursday lambasted “protectionism, isolationism and populism” and again vowed to open up Asia’s largest economy, as China faces an escalating trade dispute with the United States. Xi told a gathering of foreign business executives that after “signs of stability and improvement in the world economy” last year, “we must also stay vigilant because ... we have seen a surge of trade protectionism, isolationism and populism”....
June 22, 2018

Boeing has a lot to lose in China as Trump and Xi fire the first salvos of their trade conflict

In the perennial battle between Boeing and Airbus, China has for years tried to keep orders on an even keel between the duopoly. Now, thanks to US President Donald Trump, the American planemaker is at risk of losing its meagre lead in the world’s second-biggest aviation market. With the rising prospect of an all-out trade war after the Trump administration announced tariffs on US$50 billion of goods imported from China, President Xi Jinping is under pressure to retaliate. A clue to his...
June 21, 2018

US-China trade row hits carmaker Daimler; firm cuts profit forecast

Carmaker Daimler became the most visible global corporation to cut its profit outlook and blame it on escalating trade tensions between the US and China, saying fewer Chinese customers will buy Mercedes-Benz SUVs because of tariffs Beijing is slapping on cars imported from America. Just two months after projecting higher profits, the German firm said late on Wednesday that its full-year earnings, excluding some items, will be slightly lower than last year. Much of Daimler’s more than US$1...
June 21, 2018

China’s small firms to get new credit line as central bank set to cut lenders’ reserve ratios

China will use targeted cuts in banks’ reserve requirement ratios (RRR) and other policy tools to boost credit support for small firms and keep economic growth steady, the government said late on Wednesday. Fears of a full-blown trade war with Washington have magnified concerns about the outlook for the world’s second-largest economy, following weaker-than-expected growth figures for May. “We will use targeted RRR cuts and other monetary policy tools to enhance the ability to...
June 21, 2018

China angry over Trump’s latest tariff threats but gives no clues about countermeasures

China’s commerce ministry on Thursday accused Washington of being “protectionist” and “blackmailing” by threatening to impose further tariffs on Chinese products, but the ministry declined to specify how Beijing will respond. Ministry spokesman Gao Feng said in Beijing that the United States had abused its import tariffs system and had started trade wars in various parts of the world to “seriously undermine the world trade order and harm the interests of its...
June 21, 2018

China’s rust-belt region has a new hope for revival: North Korea

China’s rust-belt region, which has been plagued by an inefficient state economy and exodus of talent, is now pinning its hopes on a new factor to help its revival: North Korea. The Chinese province of Liaoning, which shares a long border with North Korea, is in particular looking to woo foreign and private investment inflows along with eased geopolitical tensions in the Korean peninsula. Chinese President Xi Jinping says US, North Korea must build on Singapore summit While North Korean...
June 20, 2018

US equities hold up relatively better amid trade tension, but this is not a zero-sum game

Trade wars are good and easy to win – even if the victory is won at a great cost. That is the early view from financial markets as the tariff dust-up between China and the US shows increasing signs of impacting stock prices. While broad measures of American equities have held up better than their Chinese counterparts, striation within the US market shows investors anticipate steep losses in some stalwart names. “If we compare the price action between Chinese equities and US equities...
June 20, 2018

US equities hold up better than Chinese shares amid trade tension, but this is not a zero-sum game

Trade wars are good and easy to win – even if the victory is won at a great cost. That is the early view from financial markets as the tariff dust-up between China and the US shows increasing signs of affecting stock prices. Broad measures of American equities have held up better than their Chinese counterparts, but striation within the US markets suggests that investors anticipate steep losses in some stalwart names. “If we compare the price action between Chinese equities and US...
June 20, 2018

US equities hold up better than Chinese shares in trade war tension, but this is not a zero-sum game say analysts

Trade wars are good and easy to win – even if the victory is won at a great cost. That is the early view from financial markets as the tariff dust-up between China and the US shows increasing signs of affecting stock prices. Broad measures of American equities have held up better than their Chinese counterparts, but striation within the US markets suggests that investors anticipate steep losses in some stalwart names. US retailers will blame ‘Trump tax’ for higher prices...
June 20, 2018

Donald Trump has vital meeting with lawmakers to avoid ZTE deal repeal

US President Donald Trump will try to stop a repeal of his ZTE deal on Wednesday, as he meets with lawmakers to persuade them that the US is sufficiently punishing China’s second-largest telecoms company for sanctions violations by fining it US$1.4 billion and forcing changes in its management, an administration official said. Members of Congress are meeting with Trump at the White House, where he hopes to soften a provision in defence policy legislation that would reimpose a ban on ZTE...
June 20, 2018

US lawmakers’ opposition to ZTE deal may have unintended silver lining for Donald Trump

US lawmakers’ push to undo President Donald Trump’s deal that saved Chinese telecoms company ZTE might have an unintended silver lining for the administration. After weeks of bipartisan objections to the White House lifting a ban that prevented ZTE from buying any US components, the Senate on Monday passed a defence bill that included an amendment that would reinstate the penalty. On Wednesday, Trump met with Republican lawmakers in an effort to keep his ZTE deal alive, although no...
June 20, 2018

Donald Trump has urgent meeting with lawmakers to avoid ZTE deal repeal

US President Donald Trump is trying to stop a repeal of his ZTE deal on Wednesday, meeting with lawmakers to persuade them that the US is sufficiently punishing China’s second-largest telecoms company for sanctions violations by fining it US$1.4 billion and forcing changes in its management, an administration official said. Members of Congress are meeting with Trump at the White House, where he hopes to soften a provision in Senate defence legislation that would reimpose a seven-year ban...
June 20, 2018

Donald Trump and Republicans ‘make progress’ in ZTE talks – but no word on a final agreement to stop Congress reversing his deal

Several Republican members of Congress said they and US President Donald Trump made progress on Wednesday toward a compromise that would let Chinese telecoms company ZTE stay in business while addressing lawmakers’ national security concerns – but no agreement has yet been found. Last week senators from both sides of the aisle added language to a defence bill that would repeal a deal Trump made to lift sanctions that had put ZTE out of business. In his meeting with Republican House...
June 20, 2018

Donald Trump and Republicans ‘make progress’ in ZTE talks – but no word on an agreement to stop Congress reversing his deal

Several Republican members of Congress said they and US President Donald Trump made progress on Wednesday toward a compromise that would let Chinese telecoms company ZTE stay in business while addressing lawmakers’ national security concerns – but no agreement has been reached. Last week, senators from both sides of the aisle added language to a defence bill that would repeal a deal Trump made to lift sanctions that had virtually put ZTE out of business. In his meeting with...
June 20, 2018

Beyond measure or a dent to GDP growth? How a trade war with US could hit China

China could lose up to 1 percentage point in GDP growth if its dispute with the United States is kept to a tariffs battle, according to economists, but if it turns into a full-blown economic war the country could sustain incalculable losses. While it is too early to say just how damaging the dispute will be – the first round of US tariffs on Chinese products does not kick in until July 6 – the escalation of threats has brought the world’s two largest economies to the brink of...
June 20, 2018

China’s proposed tariffs on US energy raise concerns among shale producers

China’s proposed tariffs on US petroleum imports, part of a mounting trade war between the two countries, would crimp sales to the shale industry’s largest customer, adding new pressure on US crude prices, according to energy executives and analysts. Beijing said it would impose a 25 per cent tariff on imports of US crude, natural gas and coal on July 6 if Washington went ahead, as planned, with its own tariffs on Chinese goods that day. Energy would be added for the first time to a...