China fumes over US law backing Hong Kong, says retaliation inevitable

Election News
Terms of Trade is a day by day bulletin that unravels a world entangled in exchange wars. China is making a propensity for giving obscure counter dangers. Up until now, be that as it may, it hasn't really done a lot. The outside service gave another admonition on Thursday after President Donald Trump marked bills backing Hong Kong's nonconformists, utilizing language that reflected an announcement a week ago.
China gave comparative dangers not long ago after the U.S. affirmed arms deals to Taiwan, authorized organizations over human-rights maltreatment in Xinjiang and put Huawei Technologies Co. on a boycott. "We recommend that the U.S. quits adhering determinedly to its course or China will take fearless countermeasures," the outside service said. "The U.S. side will bear all duty regarding the outcomes." Later, outside service representative Geng Shuang evaded inquiries on when China would answer or whether it would affect exchange talks, advising journalists to "stay tuned."
"What will come will come," he said. The inability to tissue out the subtleties regardless of having a long time to get ready shows the challenges China faces in hitting the U.S. without additionally harming its own economy, which is developing at the slowest pace in right around three decades. Aside from actualizing retaliatory levies against the U.S., China has to a great extent adhered to an approach of "vital poise" with regards to different parts of the relationship.
Exchange Talks Impact

Mei Xinyu, a specialist at a research organization under China's Commerce Ministry, said that the Hong Kong issue will be talked about at the exchange arrangement table and China will probably ask the U.S. side to explain its position, or even make a few guarantees on ceasing from utilizing the bill. He included that China will set up certain countermeasures simultaneously, resounding the Foreign Ministry's comments prior, without expounding on what explicit estimates will be taken......READ MORE

Trump hits China with more tariffs, says Xi moving too slow on trade

International News

US President Donald Trump said he plans to impose a 10 per cent tariff on $300 billion of Chinese imports from September 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal.
The announcement on Thursday extends Trump's trade tariffs to nearly all China's imports into the United States and marks an abrupt end to a temporary truce in a trade war that has disrupted global supply chains and roiled financial markets.
"I think President Xi ... wants to make a deal, but frankly, he's not going fast enough," Trump said.
Trump made the announcement in a series of Twitter posts after his top trade negotiators briefed him on a lack of progress in US-China talks in Shanghai this week.
Trump later said if trade negotiations fail to progress he could raise tariffs further - even beyond the 25 per cent levy he has already imposed on $250 billion of imports from China.
The news hit US financial markets hard.
Oil prices plummeted 7 per cent, with Brent crude registering the biggest daily percentage drop since February 2016. The benchmark S&P 500, which had been in solidly positive territory on Thursday afternoon, closed down 0.9 per cent. Benchmark US Treasury yields also fell.

 Retail associations predicted a spike in consumer prices. Target Corp tumbled 4.2 per cent, Macy's Inc fell 6 per cent and Nordstrom Inc was down 6.2 per cent.Asked about the impact on financial markets, Trump told reporters: "I'm not concerned about that at all."...Read More

China-US trade war heats up: 3 reasons why it won't cool down anytime soon

International News

The truce in the US-China trade war is in tatters.
China said on May 13 that it will impose new tariffs on a range of American goods in retaliation for President Donald Trump’s decision to raise duties on $200 billion in Chinese imports.

Although trade talks may continue, for now the trade war that Trump began in January 2018 is back on, which will mean more economic pain for companies and consumers in both the US and China.
As an economist who focuses on international trade, I believe there are three reasons the conflict could continue for a long time.

1. Mastering the fundamentals

All evidence suggests that negotiators have made little headway resolving the fundamental disagreements between China and the US.The most pressing issues involve deep structural features of the Chinese economy that China has little incentive – or in some cases, ability – to change. In short, the US believes that the Chinese government has been both too involved and not involved enough in how its economy functions.

The most important and long-standing issue is that the Chinese economy owes part of its rapid development in recent decades to heavy subsidization of targeted companies and industries. The US wants China to be much more transparent about this support and to reduce subsidies overall.


 At the same time, the Chinese government has not been doing enough when it comes to protecting foreign intellectual property in China. Copyright enforcement is still weak, and US companies are forced to transfer technologies to Chinese counterparts as a condition of doing business in the country.

Does Xi Jinping trust Trump enough to get on a plane and seal trade deal?

International News

Donald Trump regularly touts the strength of his personal relationship with Xi Jinping, talking about the Chinese leader in the sort of warm terms US presidents normally reserve for longstanding allies.
Yet as the world’s two largest economies inch towards a trade agreement designed to define and reorder their economic relationship for years to come, one question looms large: Does Xi trust Trump enough to get on a plane and seal the deal?

Trump and his aides have for weeks been pushing for Xi to agree to a meeting at Mar-a-Lago, the president’s club and resort in Palm Beach, Florida, to finalize a deal as soon as this month to end a dispute that has cast a shadow over the global economy. Trump himself has said that it’s only when the two leaders meet that the final details can be ironed out.

Chinese officials, however, have long been wary of putting Xi in a position where he might be embarrassed by an unpredictable Trump or forced into last-minute concessions.

“That is the real conundrum for Xi,’’ said Eswar Prasad, an expert on the Chinese economy at Cornell University who regularly meets with senior officials in Beijing. “The concern about being snookered by Trump at the negotiating table is a real risk for Xi.’’


 China’s worries are flipping the U.S. script on its head. As he claims to be the first American president to stand up to Beijing, his aides have built a possible deal on a foundation of distrust. In their view, a China that has for decades lied and cheated its way to economic success cannot be trusted to live up to any commitments unless a deal has teeth...Read More