US-China trade war escalates, tariff list aims to hinder China’s high-tech development: expert

https://youtu.be/vK4ADxuvIgk https://youtu.be/HdADW3ZpFNs

China will impose 25 percent in tariffs on 659 US goods worth $50 billion, including soybeans, cars and seafood.

The move came as a tit-for-tat response to the tariffs announced by the Trump administration Friday morning. An expert said the US decision does not aim to tackle the trade deficit with China but to block the Chinese government's efforts in high-tech development.

Tariffs on 545 US goods worth $34 billion will take effect on July 6, involving agricultural products, car parts and seafood, according to a statement released by China's Ministry of Commerce (MOFCOM) on Saturday morning. Soybeans, which are China's biggest import from the US in value, are on the list.

Chemicals, medical equipment and energy products from the US will also be subject to 25 percent tariffs, which will be announced at a later date.

The revised list is longer and involves more categories of products than a preliminary list of 106 US goods published by the ministry in April, but the total value of the products remains at $50 billion.

A Chinese commerce expert found that aircraft were removed from China's new list, which is noteworthy.

"We need aircraft [from the US]. We have to consider the costs of the countermeasures we plan to take," Bai Ming, deputy director of the Ministry of Commerce's International Market Research Institute, said on Saturday soon after the Chinese tariffs were announced.

It's like acting as a soccer referee who will not call out the offenses and let the play continue when the game still benefits the attacking team even though an attacking player is fouled, Bai further explained.

China is one of the fastest-growing civil aviation markets in the world, and 15 to 20 percent of Boeing's aircraft deliveries are projected to end in the Chinese market over the next two decades, according to Morgan Stanley.

The US has kept changing their mind and ignited a trade war, which China does not want and will firmly oppose, a spokesperson of the MOFCOM said immediately after US took trade measures on China. "This move not only hurts bilateral interests, but also undermines the world trade order."

"China and the US still have hopes of negotiating and reaching an agreement, as both the tariffs announced by the two countries will not take into effect until next month," said Wang Jun, deputy director of the Department of Information at the China Center for International Economic Exchanges.

Wang told the Global Times that the removal of aircraft from the new list can be a signal that China still wants to talk, and also aircraft can be a valuable chip in the next round of trade negotiations.

Meanwhile, Wang said the Trump administration's newly published list is not so much a solution for the trade deficit problem with China as efforts to hinder China's technology development.

US President Donald Trump on Friday announced 25 percent tariffs on $50 billion in Chinese goods, containing industrially significant technologies related to China's "Made In China 2025" strategy.

According to a list published by the office of the US Trade Representative, the tariffs will be applied on more than 1,000 types of Chinese goods, including aircraft engine parts, bulldozers, nuclear reactors and industrial and agricultural machinery.

American industry also opposed Trump's decision.

"Imposing tariffs places the cost of China's unfair trade practices squarely on the shoulders of American consumers, manufacturers, farmers, and ranchers. This is not the right approach," US Chamber of Commerce President and CEO Thomas J. Donohue said in a statement posted on the chamber's website on Friday.

By Zhang Ye Source:Global Times


Related:

Donald Trump Escalates Trade War With China

 
https://youtu.be/aPKZhnDKAic

 Casualties of US-China trade war, Bursa extends loss - Business News

 

Trump's gamble bets on interests of US public

 

China vows 'comprehensive measures' against US tariff blackmail

China on Tuesday launched a swift and sharp response to the latest trade provocations from the US, which threatened to slap tariffs on almost all Chinese exports to the US, calling the US move "blackmail" and vowing to respond with strength to protect its own and the world's interests.

Trump's strategy on China tariffs is doomed to fail, say analysts ...

China knows better as Trump tariff strategy tricks US voters

Dealing with the US is difficult, but China can easily refuse theft and coercion. China will remain with the US through negotiations and war. If a trade war between the two becomes fierce, the result will not provide a favorable political environment for President Trump.

China vows powerful retaliation against US tariffs

‍China will launch an immediate, powerful response to US tariffs on billions of dollars' worth of Chinese goods, threatening to target US goods on the same scale and intensity, a spokesperson for the Chinese Ministry of Commerce (MOFCOM) said on Friday.

IMF says US trade, fiscal policies could undermine global economy

US President Donald Trump's trade and fiscal policies are likely to increase the risks to the US and global economy, the International Monetary Fund (IMF) said Thursday.

China decides to impose additional tariffs on 50 bln USD of US imports

China has unveiled a list of products from the United States that will be subject to additional tariffs in response to US announcement to impose additional duties on Chinese imports.

Why China 'holds all the aces' in a full-blown US-China trade war - cnbc

https://youtu.be/dqrjJGdGQhg

Related posts:

Looking East policy with a twist to China ?

Japan may have led Malaysia's Look East policy of yore, but the stakes are heavily tipped in China's favour now as the leader of..

Trapped in US-China trade war when 2 elephantine economices fight ...

 

Did Trump just launch a trade war? 

 

American Ban on ZTE offers much food for thought & pain together with ZTE

 

Xi, Trump discuss China-US cooperation

 

 Trump and China’s bumpy ride begins

American Ban on ZTE offers much food for thought & pain together with ZTE

This photo taken on April 19, 2018 shows the ZTE logo on a building in Nanjing in China's eastern Jiangsu province.AFP/Getty Images

 

Ban on ZTE offers much food for thought

The US ban on sales of chips and components to China's telecommunications company ZTE shocked Chinese society. Some Chinese people are furious at US behavior, others think ZTE deserves it, while some advocate Beijing take it as a warning and boost the country's domestic semiconductor industry. Some are more pessimistic and feel China cannot beat the US in a trade war.

The ZTE case can be argued as a show of high-tech hegemony by the US. It is absurd for Washington to pull this maneuver at the eleventh hour simply because ZTE failed to cut bonuses for its 35 employees as promised. The logic works for US society and the West is watching the case for fun. But certain Chinese people are also taking pleasure in it.  This is the reality.

It must be admitted that the US is powerful and it has started to punch China hard. The rise of China has reached a juncture where Beijing has prompted Washington to ponder its status as the world's No.1 and provided a somewhat disjointed West with a reason to strengthen its solidarity. The impulse to contain China's rise is emerging among Western elites. Radical and even risky policies toward China are gaining increasing support.

China needs a strong will, an open mind and the capacity to fight back. Through political solidarity and a robust economy, Beijing should be tough enough to withstand the slings and arrows. China needs to incubate and shape strategic technology research and development.

The reason why chip technology has experienced such limited progress despite years of advocacy is that the Chinese system has not yet formed a key driving force for it.

Beijing must develop its "nuclear weapons" in the field of economics to make the outside world fear strategic confrontation with China.

China should also make friends worldwide, including Western nations, so as to unite all the forces that can be united. It must not overly focus on gains and losses in friction with others. Beijing must protect its interests, but in the meantime it cannot isolate itself doing so.

China needs to accept diverse opinions on the internet, governing them but also adapting to them so as to prevent online opinions from impacting on society's overall judgment and confidence.

It is hoped that China will develop a greater core competitiveness which other countries cannot match. This is an expectation of all Chinese people.

American business to pain together in ZTE case

https://youtu.be/XgbspspyfLQ

The US government sales ban of American components to the ZTE Corporation will surely inflict significant damage to the company. However, the pattern of globalization shows that not only will the US not secure a victory, it will also suffer a harsh blowback. The US stock market came to a similar conclusion, and media from around the world calculated that the US' future losses will be significant.

Qualcomm is a major mobile chip supplier for ZTE mobile phones. According to Reuters, Qualcomm will be harmed during this strike because ZTE is an important client, and its competitors could benefit from ZTE choosing alternative manufacturers. Furthermore, Qualcomm might suffer more setbacks when China retaliates on the US for this ban.

According to studies by various media organizations, the full implementation of the seven-year sales ban on ZTE will amount to combined loss of $6.8 billion for Qualcomm, Acacia Communications, and Oclaro Inc. It will also affect more than 32,000 employees. Due to this estimation, Acacia Communications stocks dropped 35.95 percent this week. Additionally, Intel and Microsoft will be hit by shockwaves in the tech industry.

Over the years, China has grown to become the largest sales market for US electronic chips, providing US companies with substantial funds for research and development. Losing the Chinese market might cause these US companies to decline in quality, which could result in a bleak financial future.US semiconductor companies are facing real threats as they will likely be taken over by their opponents.

The US will also be hurt from increasing suspicions to its business environment. The US government ended ZTE's business dealings with American companies by force, due to "35 employees' bonuses issues" for the company with 80,000 employees. Is the American business environment still trustworthy? Does this not imply that the US government can bully whoever it wishes? Cooperation with American companies is already difficult and being reviewed by the US government for political correctness will not make matters easier.

Some Westerners criticize the risks of doing business with Chinese companies, but not one multinational company has experienced the same mistreatment ZTE has been subjected to. The proper name for ZTE's case could be called "35 people bonus crisis" and if this is what starts the cooperation breakdown between the US and China, or globalization in general, it will be one of the most bizarre jokes in history.

China will hit back in the best way it knows and inflict losses for American companies in China. Washington should not have any delusions of tolerance from China after causing such damage to its businesses.

With China and the US trading blows in this situation, the US economy and trade relations will delve into chaos. Investments of American companies in China far exceed Chinese companies in the US, meaning that the US has more to lose since these investments will not be spared during this fight.

Most importantly, Chinese society will lose faith in cooperation with American high-tech companies. The "35 people bonus crisis" will also serve as a push for China determination to develop its semiconductor industry to replace America's components.

China will endure a sting in the high-tech sector confrontation, but the US will suffer lasting pain. China has been slow to develop its semiconductor technology because it is cheaper to purchase American products in the past. Developing chips and operating systems will require massive market support and China's yearly import of $200 billion can definitely cover the funding for this research.

The consequences of punishing ZTE is now out of Washington's control. The intertwined economies of China and the US are like "conjoined twins" and separation will cause major pain for both sides. Washington's thinking that this is a unilateral punishment is naïve, and this short-sighted judgement will be paid at the expense of American companies and enterprises. - - Global Times


Related  

Why China cannot concede in trade war

Washington has unrealistic fantasies about “balancing China-US trade.” It tries to solve US economic issues with sticks and threats rather than painstaking reforms. Simply put, it attempts to make a hard sell. The world is required to buy whatever the US produces at its convenience, and developing countries like China cannot make technological progress in the process.

China to open wider: How will US react?

If Washington thinks China's upgrade of its opening-up was triggered by US menaces, it is making a historic mistake in its relationship with Beijing. Whether the Sino-US trade war is aggravated depends on Washington. It is hoped US actions accord with Trump's pleasant tweets rather than more old carrot-and-stick

Opening-up China's future growth path

The community with shared future for mankind is a goal of China to lead the world forward into the future. The Belt and Road initiative is one of the paths toward it. The world has never seen a major power emerging with a peaceful and cooperative manner. Some people say that China is only pretending to rise peacefully. After Beijing's new measures were announced at Tuesday's forum, the world should have gained a better understanding of China.

Trump's car tariff tweet distorts truth

With the development of China's economic growth and strength of science and technology, further opening-up and lowering of tariffs will be the future trend. But how China will do this will be decided based on WTO rules and China's own interests. This is China's sovereignty. Beijing will never listen to the command of Washington.

Related posts:


Trapped in US-China trade war when 2 elephantine economic fight ...

Hardwired for global hegemony - American freedom and democracy

Hardwired for global hegemony - American democracy has become subverted by the rise of many hegemonic groups acting behind the scenes.

FOURTH of July was the 241st anniversary of the American Declaration of Independence. On that historic day in 1776, 13 British colonies in North America cut their links with their oppressor and proclaimed themselves to be the independent, sovereign United States of America.

The Preamble to the Declaration of Independence contains some of the most stirring words ever penned in a political or legal document: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

The eloquence of this passage distils the moral idealism of the forefathers of America’s independence and their vision and aspiration for the then new nation.

Indeed, in the decades that followed, the Declaration inspired many other similar documents around the world, including the Bill of Rights in the US Constitution. Abraham Lincoln referred to the Declaration in his quest to abolish slavery in the US.

Till today, students of public law around the world look with admiration to the American Constitution’s safeguards for liberty, its protection against state despotism and its vibrant provisions for check and balance of power.

Sadly, however, a wide chasm between theory and reality is discernible. Even in its pioneering years the “land of liberty” violated its lofty ideals.

The US expanded across North America by slaughtering the Native American population. “How the West was won” is a story penned with the blood of indigenous people.

The US wrested Arizona, California, Nevada, New Mexico, part of Colorado and Utah from Mexico. Though professing anti-colonialism, it acquired a few colonies abroad.

Friends of America note with sadness that after World War II, the use of brute military force and “American exceptionalism” have become very pronounced.

In 2015, the US spent US$598.5bil (RM2.6 trillion) on defence, even though it is not threatened by any enemies. It maintains 800 military bases in more than 70 countries around the world.

It is the chief manufacturer and seller of weapons of mass destruction and often uses proxies to sell murderous weapons to both warring sides.

A nation born in liberty has metamorphosed into a nation with an insatiable addiction to war and the ethos of a garrison state. From the jungles of Vietnam to the deserts of Mesopotamia, America remains in constant war to pursue its hegemonic and strategic interests.

William Blum, a historian and US foreign policy critic, has calculated that since World War II the US has nuked, bombed or been militarily involved in 31 countries and has directly or indirectly killed or maimed between 15 and 20 million people, 90% of whom were innocent civilians. Pentagon records their extermination as “collateral damage”.

Nations in Asia that have suffered devastation at American hands are Afghanistan (1998 to the present), Pakistan (2003, 2006 to the present), Japan (1945), Cambodia (1969-70), Vietnam (1961-73), Laos (1964-73), China (1945-6), Korea (1950-53) and Indonesia (1958).

In the Middle East, victims of America’s “deadly export of democracy” are Iraq (1991 to the present), Iran (1987 and 2003), Kuwait (1991), Lebanon (1983-84), Syria (1983-84, 2014 to the present), Palestine (2010) and Yemen (2003, 2009, 2011 to the present).

In Africa, the US has intervened militarily in Libya (1986, 2011, 2015 to the present), Congo (1964), Sudan (1998) and Somalia (1993, 2001-8 and 2010).

In Latin America, the US has imposed its military will on Cuba (1959-61), El Salvador (1980s), Guatemala (1954, 60, 67-69), Grenada (1983), Nicaragua (1980s), Peru (1965) and Panama (1989).

Europe has not been spared. Bosnia in 1994 and 1995 and Yugoslavia in 1999 were mercilessly bombed.

What is notable is that most of the targets are people of colour, those of the Third World or Muslims. It is not just a coincidence that all the nations being bombed by the USA today happen to be Muslim.

In addition to direct military attacks, the US wages proxy wars around the world. In Iran (1953), Guatemala (1954), Congo (1960), South Vietnam (1963), Brazil (1964), Dominican Republic (1965), Chile (1973), Egypt (2013) and Ukraine (2014) the US armed rebels and hired mercenaries to subvert and overthrow governments that refused to tow its line.

Contrary to what Americans believe, the United States is one of the greatest destabilising forces in the world today. It is also the chief diplomatic, military and financial backer of the seven-decade-old genocide in Palestine.

To assert its impunity and sense of exceptionalism it has done such outrageous things as shooting down an Iranian civilian plane in 1988 (when a US Navy ship reportedly mistook the Airbus A300 for a much smaller and faster F-14 fighter jet), killing all 290 on board. In 1999, it bombed the embassy of China in Belgrade. US officials later claimed it was an error.

Ever since 9/11, it runs offshore torture camps. It arms and finances terrorist groups with a view to destabilising governments it does not like.

It rejects or unsigns international treaties like the Ottawa Convention (the Mine Ban Treaty); the Rome Statute of the International Criminal Court; and the Paris Agreement on Climate Change.

All friends of America wonder why a nation so steeped in democracy and liberty has metamorphosed into such a war-mongering hegemon. The issue requires a separate and fuller examination.

What can be summarised is that American democracy has become subverted by the rise of many behind-the-scenes, hegemonic groups which have acquired such a stranglehold on foreign, financial and military policy that even the President and the Congress cannot defy them.

The CIA operatives, the foreign policy establishment, the military-industrial complex, the arms manufacturers, the oil barons, the gun lobby, the media, the Zionist pressure groups and the major banks constitute a parallel “deep state” that runs America.

This deep state has a vested interest in the manufacture and sale of horrendous weapons, the waging of continuous wars, the destabilisation of unfriendly regions, the control of oil supplies and the maintenance of existing trade mechanisms.

The power of the Constitution, the Congress and the President is more symbolic than real. The American electorate is either unaware or benumbed. Only if it learns more about this sad reality can any change be accomplished.

Reflecting On The Law Shad Saleem Faruqi

Emeritus Professor Datuk Dr Shad Saleem Faruqi is Tunku Abdul Rahman Professor of Law at Universiti Malaya. The views expressed here are entirely the writer’s own.

Related Links:

Restoring judicial clout

Grand inquest of the nation

Strengthening separation of powers 

Discretionary powers of the King

Reaffirming Constitutional supremacy 

Is there a tyranny-terror link?

Exceptions to double jeopardy protection

Honouring our nation’s architect and architecture

Related Posts

Malaysia is a Secular state or an Islamic country? 

Double standards on Ukraine and Crimea 

Freedom & hate speech hypocrisy 

Why not abolishing wars, seeking peace in the 70 years after WW2 & inception of the UN? 

US-Syria drums of war — a familiar beat 

New thinking on human rights & cooperation 

Malaysia world's No.1 highest civil servants-to-population ratio! Its tenure of service legally vulnerable but notoriously difficult to dismiss! 

Huge Civil Service Size, Attractive Emoluments and Benefits are costing Malaysia !

Prized job: While long-term security like the pension scheme free healthcare and easy loans have been among the perks of joining the ... 

Bloated civil sevice in Malaysia must cut down the size and salaries 

Call on the Government to downsize the country’s bloated civil service

Corruptions, Conflict of interests, politicians and Malaysian bloated civil service

Ministers may face conflict of interest, says Tunku Abdul Aziz:  "If you have no power, you cannot abuse it. Civil servants hav..