Will the US Capitulate to China?

https://webapi.project-syndicate.org/library/85e7f76801cca2765c037999eb763bff.2-1-super.1.jpg

(MANDEL NGAN/AFP/Getty Images)

 

The most important problem that a bilateral deal between the United States and China needs to resolve is Chinese theft of US firms’ technology. Unless the Chinese agree to stop stealing technology, and the two sides devise a way to enforce that agreement, the US will not have achieved anything useful from Trump’s tariffs.

CAMBRIDGE – It’s beginning to look like US President Donald Trump will yield to the Chinese in America’s trade conflict with China. The United States threatened to increase tariffs on imports from China from 10% to 25% on March 2 if no agreement was reached. But Trump recently said that the date is flexible and may be postponed because of the progress being made in the ongoing bilateral talks. Continue reading

British govt report suggests US is currently winning trade war with China

https://glblgeopolitics.files.wordpress.com/2018/09/46db4-1mlvxxjwi4wbozjdxxdl9cq.jpeg?w=526&h=362

 

China has already declared its intent to retaliate against US President Donald Trump’s new tariffs on $200 billion in Chinese imports, a move set to raise prices on consumer goods for both countries.

Several analysts have demonstrated how Trump’s tariffs will blowback on the US economy. Moody’s Investment Service previously warned that the tariffs would reduce US GDP by 0.25 percent in 2019, to about 2.3 percent. The American economy could take an even bigger hit if Trump proceeds with tariffs on $200 bn worth of Chinese products, Moody’s warned. Continue reading

‘New Cold War’ Developing Between U.S., China

https://image.zype.com/593087b25d3c19148e001735/5ba3f89a88af6114080072e4/custom_thumbnail/1080.jpg

(Photo Credit: Air Force Master Sgt. Jerry Morrison)

 

Beijing is digging in for a ‘war of attrition’ that won’t end anytime soon.

With trade tensions growing between Washington and Beijing, and the military tensions building in the South China Sea, observers are noting that a “new Cold War” is brewing between the U.S. and China. Continue reading

Trade war threats get real as US and China impose tariffs

https://static.ffx.io/images/$width_1024%2C$height_577/t_crop_auto/t_sharpen%2Cq_auto%2Cf_auto/82bd7cbf08c3ea4e938372cfb341f3c7db1e417e

Donald Trump has turned his threats of a trade war into reality. (Photo: AP)

 

US President Donald Trump fired the biggest shot yet in the global trade war by imposing tariffs on $US34 billion ($46 billion) of Chinese imports. China immediately said it would be forced to retaliate.

The duties on Chinese goods started at 12:01 am Friday in Washington (2:01 pm AEST), which was just after midday in China. Another $US16 billion of goods could follow in two weeks, Trump earlier told reporters, before suggesting the final total could eventually reach $US550 billion, a figure that exceeds all of US goods imports from China in 2017.

US customs officials will begin collecting an additional 25 per cent tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts. China’s officials have previously said they would respond by imposing higher levies on goods ranging from American soybeans to pork, which may in turn prompt Trump to raise trade barriers even higher.

Continue reading

Here Are The Six Ways China Could Retaliate In Trade War With The U.S.

For those who missed the overnight fireworks, late on Monday, President Trump asked the US Trade Representative to identify USD 200BN in Chinese goods for further tariffs of 10% which will be imposed if China refuses to change its practices and goes ahead with its retaliation threat, while he also stated that China raising tariffs is unacceptable and that the US will pursue tariffs on another USD 200bln of Chinese goods if China increases tariffs yet again.

Predictably, China – which last week reacted instantly to Trump’s first round of $50BN in tariffs – again responded immediately, wasting no time in accusing Trump of “blackmail.” China’s commerce ministry said on its website that if the US “irrationally” moves forward with the tariffs then China has no choice but to “forcefully fight back” with “qualitative” and “quantitative” measures. Continue reading

Foreigners Dump US Treasury Bonds in Record Amounts

https://www.financialsense.com/sites/default/files/users/u3823/images/2018/stock-1863880-960-720.jpg

 

For the 2nd straight month in April, foreigners were net sellers of notes and bonds. The total was $4.8b, about the same as the net sales in March. The complexion of the activity was very bifurcated however as central banks sold a total of $48.3b, more than offsetting private foreign buying of $44.6b (International agencies make up the difference). Continue reading

Europe Renews Tariffs On Chinese Steel Pipes As High As 72%

As the world watches breathlessly if Trump will follow through with his threat to slap steel and aluminum import tariffs, Europe continues to quietly ratchet up its own trade war with China and nobody seems to mind. Continue reading

Now, a Trade War — Is a Shooting War Next?

(Shutterstock)

 

A popular thesis since the 1930s is that a natural progression exists from currency wars to trade wars to shooting wars. Both history and analysis support this thesis.

Currency wars do not exist all the time; they arise under certain conditions and persist until there is either systemic reform or systemic collapse. The conditions that give rise to currency wars are too much debt and too little growth.

In those circumstances, countries try to steal growth from trading partners by cheapening their currencies to promote exports and create export-related jobs. Continue reading

Trump To Launch Trade War With China On Friday, Beijing Vows Retaliation

 

Yesterday, the WSJ reported that the Trump administration is planning to begin a probe of what the U.S. sees as violations of intellectual property by China. Against a backdrop of Trump’s frustrations with domestic policy, sliding approval ratings and disagreement with China over North Korea, the chances of protectionist action are rising, as is the probability of a “hot”, retaliatory trade war. This morning ow learn when Trump is set to fire the first shot. Reuters reports, citing White House officials, that President Trump is expected to make a speech and sign a memorandum at the White House on tomorrow, Friday, that will target China’s intellectual property and trade practices, effectively firing the first shot in what could escalate into a major US-China trade war. Continue reading

America’s Dying Aluminum Industry

And America still has no replacement for the Russian rockets it uses to send things into space with. America is hemorrhaging.

 

High purity aluminum is used to make jets such as this Boeing F-18. (ASANKA BRENDON RATNAYAKE/ANADOLU AGENCY/GETTY IMAGES)

 

Cheap Chinese aluminum is undermining national security.

At the dawn of the 20th century, the United States of America emerged as a world power. At the heart of its rise was a powerful manufacturing economy. Following the rapid expansion westward of Manifest Destiny, the collective resources of the continent were combined with the innovative and entrepreneurial spirit of the American people. The steel smelters of Pittsburgh, and the automobile factories of Detroit were symbols of America’s manufacturing might.

While American manufacturing drove forward peacetime prosperity, it wasn’t long before it would be mobilized for war. The armies of freedom were fortunate that the American industrial machine was on the side of the Allies, for it proved unmatched in the world. It is doubtful that the Allies could have won World War II if America was less industrialized. Despite the vital nature of American manufacturing, it has crumbled into oblivion since 1945.

The continuous outsourcing of American manufacturing and the over production of other countries has eroded away any industry America had. The smelters around Pittsburgh have long disappeared, and Detroit has become a ghost town. While this has led to fewer jobs and domestic issues, it is also becoming a national security threat. Continue reading

China eyes ‘The Art of War’ as Trump signals battle on trade

There’s a Chinese saying that stems from the philosophy in Sun Tzu’s ancient text “The Art of War”: You can kill 1,000 enemies, but you would also lose 800 soldiers.

Centuries later, the proverb is suddenly apt again, being mentioned frequently in discussions around Beijing. Now, it highlights the potential damage U.S. President-elect Donald Trump could inflict if he makes good on his threat to start a trade war with China, the world’s second-biggest economy.

Having backed off some other campaign pledges, it’s unclear if Trump will end up slapping punitive tariffs on China — and Beijing has signaled some optimism he will be more pragmatic in office. Still, the message from China is that any move to tax Chinese imports would bring retaliation: The U.S. economy would take a hit and America would damage its long-standing ties with Asia. Continue reading

China Warns of a Trade War with U.S. Under Donald Trump

Last night, Chinese President Xi Jinping rang up President-elect Donald Trump to congratulate him on his recent election win.

During the phone call, Xi stressed the need for cooperation between China and the United States in terms of trade, reported Beijing’s state-run TV channel China Central Television (CCTV) this morning. Continue reading

The U.S.’ New Trade War with China

China decried a decision by the U.S. Chamber of Commerce yesterday to impose steep duties on the country’s cold-rolled flat steel, which is primarily used for car manufacturing.

The United States imposed a new 522% fee on steel products, reported CNN. New China tariffs also include a 266% anti-dumping duty and a 256% anti-subsidy duty. Continue reading

The biggest US-EU free trade agreement in history is advancing behind closed doors

Secret negotiations between the US and EU for the biggest bilateral trade agreement ever negotiated resume on April 20 in New York. The talks are attracting increasing criticism as activists guess at the proposals while politicians keep the details behind closed doors.

The Transatlantic Trade and Investment Partnership is a massive new trade deal, expected to be completed in the next few months, that would cut tariffs on imported goods between the two powers while standardising safety rules.

That might mean Scottish manufacturers can sell woollen jumpers in the US cheaply, while give US brands direct access to the EU market. Critics say it could reduce European safety standards and allow the privatisation of services such as the NHS. Continue reading

By 2015, Russia Wants To Establish A Eurasian Union To Rival The EU

Is Moscow’s proposed Eurasian Union an initiative to revitalize stagnant economies, or an attempt to re-establish a Soviet Union “lite?”

After the fall of the Soviet Union in 1991, the world suddenly had 15 more nation states, some of whom had not been sovereign territories since the 19th century.

Nevertheless, calls for a re-integration of the Eurasian region were soon heard, often led by Russia, according to (pdf) a Chatham House paper.

In 2005, Russian President Vladimir Putin called the fall of the USSR “a major geopolitical disaster of the century.”

There’s been a smattering of different attempts at unification, including the Commonwealth of Independent States security union, but a lack of commitment to creating the institutions have stalled efforts, Chatham House writes.

Continue reading