&nbsp;Oil prices fell on Monday amid worries about an economic slowdown and the <a href="https://www.wionews.com/photos/us-china-trade-war-in-10-dates-241155#march-22-china-ripostes-241133">US-China&nbsp;trade&nbsp;war</a>, which have led to a cut in the outlook for global oil demand.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous&nbsp;settlement.

US&nbsp;West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the&nbsp;trade&nbsp;dispute&nbsp;between the United States and&nbsp;China&nbsp;has weakened demand and reduced crude prices.

US&nbsp;President Donald Trump said on Friday he was not ready to make a deal with&nbsp;China&nbsp;and even called a September round of&nbsp;trade&nbsp;talks into question.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Goldman Sachs Group Inc said on Sunday it no longer expects a&nbsp;trade&nbsp;deal between the world's two largest economies before the 2020 US presidential election.

The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008.

OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year.

"If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday.&nbsp;

"We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel."

In a sign of lower production in the United States, the weekly US&nbsp;oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions.

India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.

Oil prices fell on Monday amid worries about an economic slowdown and the US-China trade war, which have led to a cut in the outlook for global oil demand. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. Although the third quarter is fundamentally the strongest season for oil demand because of driving in summer holidays, the trade dispute between the United States and China has weakened demand and reduced crude prices. US President Donald Trump said on Friday he was not ready to make a deal with China and even called a September round of trade talks into question. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Goldman Sachs Group Inc said on Sunday it no longer expects a trade deal between the world's two largest economies before the 2020 US presidential election. The International Energy Agency (IEA) said on Friday mounting signs of an economic slowdown had caused global oil demand to grow at its slowest pace since the financial crisis of 2008. OPEC members continue to cut production to drain global oil inventories, with the Saudis cutting more than their agreed quota, but analysts said more cuts were needed to support prices due to a fall in demand and non-OPEC supply growth next year. "If OPEC cuts are merely extended through 2020, prices are going to fall further from current levels," Bernstein Energy said in a note on Monday. "We believe that OPEC needs to cut by a further one million barrels per day in 2020 if they are to defend oil prices at $60 a barrel." In a sign of lower production in the United States, the weekly US oil rig count, an early indicator of future output, fell for a sixth straight week as producers cut spending on new drilling and completions. India's imports of crude oil have also stalled in recent months, a fall that tallies with weaker economic growth in the country.

Oil edges down on lower demand outlook, US-China trade dispute

Yen&nbsp;and&nbsp;bond&nbsp;bulls&nbsp;charged on Monday while stocks struggled again, amid ongoing worries that a prolonged <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade war </a>and damaging Brexit could tip-top economies into recession.

Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight.

That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday.

Safety remained the name of the game.

FX harbour, the Japanese&nbsp;yen, hit its highest in nearly a year and a half at 105.32&nbsp;yen&nbsp;against the dollar and gained against the euro and Brexit-bruised British pound too.

"Risk indicators and&nbsp;global&nbsp;markets&nbsp;have become shakier and the&nbsp;yen&nbsp;is reflecting those concerns, and safe-haven shelters like the&nbsp;yen&nbsp;and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt.

In&nbsp;bond&nbsp;markets, the demand for guaranteed income was also unrelenting.

A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming.

There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed.

"Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields.

Economists are also watching for a batch of&nbsp;global&nbsp;data this week.

Goldman Sachs became the latest to cut its US&nbsp;growth forecast at the weekend, warning that a US&nbsp;China trade deal now looked unlikely before the 2020 US&nbsp;presidential election.

One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions.

The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals.

Mixed messages

On Friday, Wall Street snapped a three-day winning streak after US&nbsp;President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now.

Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&amp;P 500 lost 0.66% and the Nasdaq Composite dropped 1%.

White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators.

Wall Street futures were down 0.5%.

In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement.

US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital&nbsp;Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Argentina's&nbsp;markets&nbsp;were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October.

Argentina's 2028-maturing, euro-denominated government&nbsp;bond&nbsp;was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession. Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight. That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday. Safety remained the name of the game. FX harbour, the Japanese yen, hit its highest in nearly a year and a half at 105.32 yen against the dollar and gained against the euro and Brexit-bruised British pound too. "Risk indicators and global markets have become shakier and the yen is reflecting those concerns, and safe-haven shelters like the yen and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt. In bond markets, the demand for guaranteed income was also unrelenting. A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming. There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed. "Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields. Economists are also watching for a batch of global data this week. Goldman Sachs became the latest to cut its US growth forecast at the weekend, warning that a US China trade deal now looked unlikely before the 2020 US presidential election. One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions. The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals. Mixed messages On Friday, Wall Street snapped a three-day winning streak after US President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now. Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&P 500 lost 0.66% and the Nasdaq Composite dropped 1%. White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators. Wall Street futures were down 0.5%. In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Argentina's markets were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October. Argentina's 2028-maturing, euro-denominated government bond was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charge on as share markets falter

After the International Monetary Fund (IMF) report of China's economic slowdown due to trade tariff imposed by the Trump administration, US President Donald Trump on Saturday took a swipe at China saying it wants to "badly" chalk out an agreement with his country.

He also claimed that Beijing "maybe" hoping for a Democrat to win the next year`s presidential election."China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs, they must stem the flow. At the same time China may be hoping for a Democrat to win so they could continue the great ripoff of America, &amp; the theft of hundreds of Billions of $'s!" Trump wrote on Twitter.

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<blockquote class="twitter-tweet">
China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs, they must stem the flow. At the same time China may be hoping for a Democrat to win so they could continue the great ripoff of America, &amp; the theft of hundreds of Billions of $’s!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1160309383701680129?ref_src=twsrc%5Etfw">August 10, 2019</a></blockquote>
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His tweet came a day after Trump said that the US was talking to China but asserted that Washington was not ready to strike an agreement with the Asian nation, ruling out an immediate breakthrough to end the trade war.

"We are talking to China. We are not ready to make a deal, but we will see what happens. They want to make a deal. I'm not ready to make a deal," he was quoted by The Hill as saying.

On August 1, Trump had announced that he would impose a 10 per cent tariff on the remaining $300 billion worth of untaxed imports from China, which came after trade talks between the two sides were held in Shanghai.

This means everything that China sells to the US, including clothes and iPhones to chemicals and construction equipment, will have levies of between 10 and 25 per cent on them starting from September 1, escalating the trade tensions between the world`s two largest economies.

The US had already slapped a 25 per cent tariff on a separate $250 billion of Chinese imports. China retaliated by lowering the value of the yuan and suspended purchases of US agricultural products.

Calling the US's decision a "serious violation" of the consensus reached by the two sides at the G20 summit in Osaka, Beijing said the move deviated from the right course and will in no way help to end the trade war.

(With inputs from ANI)

After the International Monetary Fund (IMF) report of China's economic slowdown due to trade tariff imposed by the Trump administration, US President Donald Trump on Saturday took a swipe at China saying it wants to "badly" chalk out an agreement with his country.

After the International Monetary Fund (IMF) report of China's economic slowdown due to trade tariff imposed by the Trump administration, US President Donald Trump on Saturday took a swipe at China saying it wants to "badly" chalk out an agreement with his country. He also claimed that Beijing "maybe" hoping for a Democrat to win the next year`s presidential election."China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs, they must stem the flow. At the same time China may be hoping for a Democrat to win so they could continue the great ripoff of America, & the theft of hundreds of Billions of $'s!" Trump wrote on Twitter. China wants to make a deal so badly. Thousands of companies are leaving because of the Tariffs, they must stem the flow. At the same time China may be hoping for a Democrat to win so they could continue the great ripoff of America, & the theft of hundreds of Billions of $’s! — Donald J. Trump (@realDonaldTrump) August 10, 2019 × His tweet came a day after Trump said that the US was talking to China but asserted that Washington was not ready to strike an agreement with the Asian nation, ruling out an immediate breakthrough to end the trade war. "We are talking to China. We are not ready to make a deal, but we will see what happens. They want to make a deal. I'm not ready to make a deal," he was quoted by The Hill as saying. On August 1, Trump had announced that he would impose a 10 per cent tariff on the remaining $300 billion worth of untaxed imports from China, which came after trade talks between the two sides were held in Shanghai. This means everything that China sells to the US, including clothes and iPhones to chemicals and construction equipment, will have levies of between 10 and 25 per cent on them starting from September 1, escalating the trade tensions between the world`s two largest economies. The US had already slapped a 25 per cent tariff on a separate $250 billion of Chinese imports. China retaliated by lowering the value of the yuan and suspended purchases of US agricultural products. Calling the US's decision a "serious violation" of the consensus reached by the two sides at the G20 summit in Osaka, Beijing said the move deviated from the right course and will in no way help to end the trade war. (With inputs from ANI)

China 'badly' wants to make deal with US and may want a Democrat to beat me: Donald Trump

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US.

The producer price index (PPI) -- an important barometer of the industrial sector that measures the cost of goods at the factory gate -- dropped 0.3 per cent year-on-year in July, down from zero per cent in June, according to the National Bureau of Statistics (NBS).

A slowdown in factory gate inflation reflects sluggish demand, while a turn to deflation could dent corporate profits and drag on the world's number two economy, which in turn could lead to a drop in prices globally.

The reading marks the first deflation since August 2016, and fell short of the -0.1 per cent forecast in a Bloomberg News survey.

The petroleum and natural gas mining sector led the drop, while a contraction in petroleum, coal and other fuel processing also widened, NBS official Dong Yaxiu said in a statement.

"The profitability for industrial firms will take a hit and the broader outlook will continue to slump," said Edward Moya, analyst at OANDA.

Additional monetary loosening is expected as the central People's Bank of China will put more weight on tackling factory-gate deflation, Julian Evans-Pritchard of Capital Economics wrote in a research note.

China's consumer price index (CPI) -- a gauge of retail inflation -- rose 2.8 per cent, up from 2.7 per cent in May, marking the fastest pace since February 2018.

Pork prices rose as supply was "slightly shortened" by the African swine fever epidemic while hot summer weather has led to decreased production in eggs, thus driving prices higher, according to Dong.

Chinese and US negotiators met in Shanghai in July in a bid to patch up the trade rift hurting the world's top two economies.&nbsp;

But tensions have mounted rapidly since then, as US President Donald Trump vowed to impose fresh tariffs on $300 billion in Chinese goods from September 1.

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US.

Chinese factory price inflation fell below zero for the first time in three years, official data showed Friday, the latest sign of weakening demand amid mounting trade tensions with the US. The producer price index (PPI) -- an important barometer of the industrial sector that measures the cost of goods at the factory gate -- dropped 0.3 per cent year-on-year in July, down from zero per cent in June, according to the National Bureau of Statistics (NBS). A slowdown in factory gate inflation reflects sluggish demand, while a turn to deflation could dent corporate profits and drag on the world's number two economy, which in turn could lead to a drop in prices globally. The reading marks the first deflation since August 2016, and fell short of the -0.1 per cent forecast in a Bloomberg News survey. The petroleum and natural gas mining sector led the drop, while a contraction in petroleum, coal and other fuel processing also widened, NBS official Dong Yaxiu said in a statement. "The profitability for industrial firms will take a hit and the broader outlook will continue to slump," said Edward Moya, analyst at OANDA. Additional monetary loosening is expected as the central People's Bank of China will put more weight on tackling factory-gate deflation, Julian Evans-Pritchard of Capital Economics wrote in a research note. China's consumer price index (CPI) -- a gauge of retail inflation -- rose 2.8 per cent, up from 2.7 per cent in May, marking the fastest pace since February 2018. Pork prices rose as supply was "slightly shortened" by the African swine fever epidemic while hot summer weather has led to decreased production in eggs, thus driving prices higher, according to Dong. Chinese and US negotiators met in Shanghai in July in a bid to patch up the trade rift hurting the world's top two economies. But tensions have mounted rapidly since then, as US President Donald Trump vowed to impose fresh tariffs on $300 billion in Chinese goods from September 1.

China factory price deflates as demand weakens

Trade tariffs imposed by the <a href="https://www.wionews.com/business-economy/oil-prices-rise-escalating-us-china-trade-war-caps-gains-240974">United States against China</a> will moderately slow the country's <a href="https://www.wionews.com/world/us-president-trump-says-us-not-ready-to-make-trade-deal-with-china-241860">economic growth</a> this year, the International Monetary Fund (IMF) said on Friday.

"Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report.

The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system".

The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent.

Meanwhile, the IMF found progress in China's reforms in key economic areas.

"The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said.

"Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added.&nbsp;

Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday.

Trade tariffs imposed by the United States against China will moderately slow the country's economic growth this year, the International Monetary Fund (IMF) said on Friday. "Growth is projected to moderate to 6.2 per cent in 2019 as the planned policy stimulus partially offsets the negative impact from the US tariff hike on USD 200 billion of Chinese exports," the IMF said in its report. The global monetary body called on Beijing to resolve tensions with Washington "through a comprehensive agreement that avoids undermining the international system". The IMF said that the Chinese economy is facing external headwinds and an uncertain environment. It added that rising food prices led to inflation, which is expected to remain at 2.5 per cent. Meanwhile, the IMF found progress in China's reforms in key economic areas. "The strengthening of financial regulations and control over off-budget local government investment has reduced the pace of debt accumulation, helping contain the build-up of risks in the financial sector," the report said. "Opening up continued, with decreases in tariffs, the passage of new foreign investment law, and revisions to the negative list for foreign investment entry," it added. Moreover, the IMF urged China to implement further structural fiscal reforms. This policy can enhance medium-term growth.

Trade war with the US to moderately slow down China's economic growth in 2019: International Monetary Fund

US stocks edged lower on Friday after rebounding strongly a day earlier, as investors grappled with fresh trade tensions, political turmoil in Italy and a surprise contraction in Britain's economy.

Shares of chipmakers and other tariff-sensitive technology companies came under pressure after a report that Washington was delaying a decision about allowing some trade between US firms and China's telecom equipment maker Huawei again.

The Philadelphia SE semiconductor index fell 1.16 per cent, while Apple Inc slipped 0.6 per cent.

In Europe, Italy's ruling League party Deputy Prime Minister Matteo Salvini called for early elections; while Britain's economy shrank for the first time since 2012, raising concerns as the country gears up to leave the European Union in October.

"Political uncertainty in the eurozone is adding an additional variable that the market has to juggle around with. That, coupled with the GDP numbers and the trade war, is giving investors an indigestion," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

"Until we get some sort of tangible answers to what the (Trump) administration is going to do with China, this is going to be a overhang on the market, creating plenty of sharp swings."

US stocks roared back on Thursday, recording their best one-day percentage gain in two months in what has been a turbulent week for the markets dominated by a symbolic drop in China's currency.

At 9:50 am ET, the Dow Jones Industrial Average was down 82.56 points, or 0.31 per cent, at 26,295.63 and the S&amp;P 500 was down 12.15 points, or 0.41 per cent, at 2,925.94. The Nasdaq Composite was down 54.54 points, or 0.68 per cent, at 7,984.62.

Investors seeking safety helped the defensive sectors, including utilities and real estate, outperform the other major S&amp;P sectors this week.

Shares of Uber Technologies Inc shed 9.4% after the ride-hailing company reported a record $5.2 billion loss and revenue that fell short of Wall Street targets.

DXC Technology tumbled 31.4% after the IT and consulting services provider cut its full-year profit and revenue forecast.

Nektar Therapeutics shares plunged 38.2% after the drug developer flagged manufacturing issues with its experimental cancer drug bempeg.

Declining issues outnumbered advancers for a 1.73-to-1 ratio on the NYSE and for a 1.44-to-1 ratio on the Nasdaq.

The S&amp;P index recorded 33 new 52-week highs and three new lows, while the Nasdaq recorded 35 new highs and 39 new lows.

US stocks edged lower on Friday after rebounding strongly a day earlier, as investors grappled with fresh trade tensions, political turmoil in Italy and a surprise contraction in Britain's economy.

US stocks edged lower on Friday after rebounding strongly a day earlier, as investors grappled with fresh trade tensions, political turmoil in Italy and a surprise contraction in Britain's economy. Shares of chipmakers and other tariff-sensitive technology companies came under pressure after a report that Washington was delaying a decision about allowing some trade between US firms and China's telecom equipment maker Huawei again. The Philadelphia SE semiconductor index fell 1.16 per cent, while Apple Inc slipped 0.6 per cent. In Europe, Italy's ruling League party Deputy Prime Minister Matteo Salvini called for early elections; while Britain's economy shrank for the first time since 2012, raising concerns as the country gears up to leave the European Union in October. "Political uncertainty in the eurozone is adding an additional variable that the market has to juggle around with. That, coupled with the GDP numbers and the trade war, is giving investors an indigestion," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. "Until we get some sort of tangible answers to what the (Trump) administration is going to do with China, this is going to be a overhang on the market, creating plenty of sharp swings." US stocks roared back on Thursday, recording their best one-day percentage gain in two months in what has been a turbulent week for the markets dominated by a symbolic drop in China's currency. At 9:50 am ET, the Dow Jones Industrial Average was down 82.56 points, or 0.31 per cent, at 26,295.63 and the S&P 500 was down 12.15 points, or 0.41 per cent, at 2,925.94. The Nasdaq Composite was down 54.54 points, or 0.68 per cent, at 7,984.62. Investors seeking safety helped the defensive sectors, including utilities and real estate, outperform the other major S&P sectors this week. Shares of Uber Technologies Inc shed 9.4% after the ride-hailing company reported a record $5.2 billion loss and revenue that fell short of Wall Street targets. DXC Technology tumbled 31.4% after the IT and consulting services provider cut its full-year profit and revenue forecast. Nektar Therapeutics shares plunged 38.2% after the drug developer flagged manufacturing issues with its experimental cancer drug bempeg. Declining issues outnumbered advancers for a 1.73-to-1 ratio on the NYSE and for a 1.44-to-1 ratio on the Nasdaq. The S&P index recorded 33 new 52-week highs and three new lows, while the Nasdaq recorded 35 new highs and 39 new lows.

Wall Street slips as Huawei report adds to trade concerns

US President Donald Trump on Friday said Washington wasn't ready to finalise a trade deal with Beijing, amid lingering worries over the intensifying US-China trade war, reported news agency AFP.

US President Donald Trump on Friday said Washington wasn't ready to finalise a trade deal with Beijing, amid lingering worries over the intensifying US-China trade war, reported news agency AFP. "We're not ready to make a deal," Trump told reporters at the White House before heading out on vacation at his New Jersey golf resort. Trump comment comes a day after US hit China with new import duties Thursday on more than $4 billion in imported wooden cabinets and vanities, after finding manufacturers there benefit from unfair subsidies. The Commerce Department's preliminary finding comes just a week after Washington announced new punitive duties on another $300 billion in Chinese goods, meaning that starting September 1 all Chinese imports will be subject to punitive tariffs. The latest announcement is one in a series of cases Commerce has pursued against particular product lines, usually at the request of American companies claiming to be hurt by imports from China or other trading partners.

President Trump says US 'not ready' to make trade deal with China

Weaponising Yuan: Beijing's double-edged sword

Chinese companies have stopped buying US agricultural products, China's Commerce Ministry said on Tuesday (August 06), a blow to US farmers who have already seen their exports slashed by the more than year-old trade war.

US farmers suffer 'body blow' as China slams door on farm purchases

China on Tuesday announced that its firms have suspended purchases of US agricultural products nearly a week after President Donald Trump announced his decision to slap <a href="https://www.wionews.com/videos/chinas-new-un-envoy-beijing-ready-to-fight-us-on-trade-240448">additional tariffs on Chinese exports</a>.

Also read:&nbsp;<a href="https://www.wionews.com/world/us-designates-china-a-currency-manipulator-as-yuan-hits-record-low-240948">US designates China a currency manipulator as yuan hits record low</a>

China "has not ruled out import tariffs on US agricultural products purchased after August 3, and related Chinese companies have suspended purchasing US agricultural products," South China Morning Post reported quoting state-run Xinhua News Agency."

It is hoped that the US will conscientiously implement the consensus reached at the meeting between the heads of state of China and the US, and have the confidence to implement the commitments to create the necessary conditions for cooperation in the agricultural fields between the two countries," the Xinhua report said.

On August 1, Trump had announced that he would impose a 10 per cent tariff on the remaining US $300 billion worth of untaxed imports from China, which came after trade talks between the two sides were held in Shanghai. &nbsp;

This means everything that China sells to the US, including clothes and iPhones to chemicals and construction equipment, will have levies of between 10 and 25 per cent on them starting in September, escalating the trade tensions between the two countries.

Calling the US` decision a "serious violation" of the consensus reached by the two sides at the G20 summit in Osaka, Beijing said the move deviated from the right course and will in no way help to end the protracted trade war between the two world`s largest economies.

Following the US` announcement, China allowed the Yuan to fall to its lowest level in more than a decade. The Yuan traded above 7 per US dollar.

China on Tuesday announced that its firms have suspended purchases of US agricultural products nearly a week after President Donald Trump announced his decision to slap additional tariffs on Chinese exports.

China on Tuesday announced that its firms have suspended purchases of US agricultural products nearly a week after President Donald Trump announced his decision to slap additional tariffs on Chinese exports. Also read: US designates China a currency manipulator as yuan hits record low China "has not ruled out import tariffs on US agricultural products purchased after August 3, and related Chinese companies have suspended purchasing US agricultural products," South China Morning Post reported quoting state-run Xinhua News Agency." It is hoped that the US will conscientiously implement the consensus reached at the meeting between the heads of state of China and the US, and have the confidence to implement the commitments to create the necessary conditions for cooperation in the agricultural fields between the two countries," the Xinhua report said. On August 1, Trump had announced that he would impose a 10 per cent tariff on the remaining US $300 billion worth of untaxed imports from China, which came after trade talks between the two sides were held in Shanghai. This means everything that China sells to the US, including clothes and iPhones to chemicals and construction equipment, will have levies of between 10 and 25 per cent on them starting in September, escalating the trade tensions between the two countries. Calling the US` decision a "serious violation" of the consensus reached by the two sides at the G20 summit in Osaka, Beijing said the move deviated from the right course and will in no way help to end the protracted trade war between the two world`s largest economies. Following the US` announcement, China allowed the Yuan to fall to its lowest level in more than a decade. The Yuan traded above 7 per US dollar.

China suspends purchase of US farm products after Trump's tariffs

The United States on Monday formally accused <a href="https://www.wionews.com/world/trump-defends-stance-on-china-trade-after-new-tariffs-says-things-are-going-well-240486">China of manipulating </a>its currency, marking the second major escalation in the two countries' spiralling trade war in just 24 hours.

Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade -&nbsp;provoking US President Donald Trump's ire and <a href="https://www.wionews.com/south-asia/pakistan-looses-3-key-positions-in-world-trade-organisation-240613">sending global equities</a> markets diving into the red.

Wall Street on Monday posted its worst one-day losses of 2019 as hope of any near-term resolution to the year-long trade war between the world's top two economies appeared to slide out of view.

In a Twitter outburst earlier in the day, Trump had angrily accused Beijing of weakening the yuan "to steal our businesses and factories."

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China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the U.S. with unfair trade practices and currency manipulation. So one-sided, it should have been stopped many years ago!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1158407373666566145?ref_src=twsrc%5Etfw">August 5, 2019</a></blockquote>
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US Treasury Secretary Steven Mnuchin, "under the auspices of President Trump, has today determined that China is a<a href="https://www.wionews.com/business-economy/chinese-yuan-falls-to-weakest-level-against-the-dollar-since-2010-240743"> currency manipulator</a>," the Treasury Department said in a statement late Monday.

As a result, Mnuchin will engage the International Monetary Fund "to eliminate the unfair competitive advantage created by China's latest actions," the statement said.

The new designation is largely symbolic, since it calls for consultations with countries found to be manipulating their currencies.

But it could gain teeth if the Commerce Department begins imposing tariffs on countries found to be undervaluing their currencies, as that department said earlier this year it plans to do.

The volley lobbed across the Pacific on Monday was sure to shake the global economy even further, with markets doubtful that either side is willing or able to prevent hostilities from spinning out of control.

Chinese state media also announced Monday that Beijing had suspended purchases of American farm exports, piling pain on US agricultural states already battered by Beijing's retaliation in the trade war.

The yuan's weakening came just days after Trump announced plans to raise tariffs on another $300 billion in Chinese imports starting September 1, accusing Beijing of failing to live up to commitments in trade negotiations.

That would mean virtually all of the roughly $660 billion in goods exchanged annually between China and the United States are subject to trade barriers.

The battle has sapped business confidence and undermined both countries' manufacturing sectors just as the world economy's slowdown worsens.

Activity in the US service sector hit a three-year low last month, survey data showed Monday, confirming a step-down in US economic growth.

Trump's move was also sudden: On the campaign trail, he had loudly pledged to designate China a currency manipulator but his administration had until Monday refrained from doing so.

The Treasury Department had instead kept China on a "monitoring list" of countries subject to close scrutiny due to their currency practices, including in its most recent report released in May.&nbsp;

The yuan is not freely convertible and the government limits its movement against the US dollar to a two per cent range on either side of a central parity rate which the People's Bank of China (PBOC) sets each day to reflect market trends and control volatility.

"It appears that the tariffs hike suggests the return of tit-for-tat moves and a suspension of trade talks, and the PBOC sees no need to keep the yuan stable in the near term," Ken Cheung, a senior currency strategist at Mizuho Bank, told Bloomberg News.

In a statement on Monday morning, the PBOC said the exchange rate against the US dollar had been "affected by unilateralism and trade protectionism measures and the imposition of tariff increases on China."

The central bank said the yuan remained "stable and strong against the basket of currencies" and said it would "resolutely crack down on short-term speculation and maintain stable operation of the foreign exchange market and stabilize market expectations."

It went on to say that it had the "experience, confidence and ability to keep the RMB exchange rate basically stable at a reasonable and balanced level."

Julian Evans-Pritchard, senior China economist with Capital Economics, said the PBOC has "effectively weaponized the exchange rate" by linking the currency with the US trade war.

"Given that their goal is presumably to offset some of the impact from additional US tariffs, they are likely to allow the currency to weaken further, probably by 5-10 per cent over the coming quarters," said Evans-Pritchard.

The United States on Monday formally accused China of manipulating its currency, marking the second major escalation in the two countries' spiralling trade war in just 24 hours.

The United States on Monday formally accused China of manipulating its currency, marking the second major escalation in the two countries' spiralling trade war in just 24 hours. Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade - provoking US President Donald Trump's ire and sending global equities markets diving into the red. Wall Street on Monday posted its worst one-day losses of 2019 as hope of any near-term resolution to the year-long trade war between the world's top two economies appeared to slide out of view. In a Twitter outburst earlier in the day, Trump had angrily accused Beijing of weakening the yuan "to steal our businesses and factories." China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the U.S. with unfair trade practices and currency manipulation. So one-sided, it should have been stopped many years ago! — Donald J. Trump (@realDonaldTrump) August 5, 2019 × US Treasury Secretary Steven Mnuchin, "under the auspices of President Trump, has today determined that China is a currency manipulator," the Treasury Department said in a statement late Monday. As a result, Mnuchin will engage the International Monetary Fund "to eliminate the unfair competitive advantage created by China's latest actions," the statement said. The new designation is largely symbolic, since it calls for consultations with countries found to be manipulating their currencies. But it could gain teeth if the Commerce Department begins imposing tariffs on countries found to be undervaluing their currencies, as that department said earlier this year it plans to do. The volley lobbed across the Pacific on Monday was sure to shake the global economy even further, with markets doubtful that either side is willing or able to prevent hostilities from spinning out of control. Chinese state media also announced Monday that Beijing had suspended purchases of American farm exports, piling pain on US agricultural states already battered by Beijing's retaliation in the trade war. The yuan's weakening came just days after Trump announced plans to raise tariffs on another $300 billion in Chinese imports starting September 1, accusing Beijing of failing to live up to commitments in trade negotiations. That would mean virtually all of the roughly $660 billion in goods exchanged annually between China and the United States are subject to trade barriers. The battle has sapped business confidence and undermined both countries' manufacturing sectors just as the world economy's slowdown worsens. Activity in the US service sector hit a three-year low last month, survey data showed Monday, confirming a step-down in US economic growth. Trump's move was also sudden: On the campaign trail, he had loudly pledged to designate China a currency manipulator but his administration had until Monday refrained from doing so. The Treasury Department had instead kept China on a "monitoring list" of countries subject to close scrutiny due to their currency practices, including in its most recent report released in May. The yuan is not freely convertible and the government limits its movement against the US dollar to a two per cent range on either side of a central parity rate which the People's Bank of China (PBOC) sets each day to reflect market trends and control volatility. "It appears that the tariffs hike suggests the return of tit-for-tat moves and a suspension of trade talks, and the PBOC sees no need to keep the yuan stable in the near term," Ken Cheung, a senior currency strategist at Mizuho Bank, told Bloomberg News. In a statement on Monday morning, the PBOC said the exchange rate against the US dollar had been "affected by unilateralism and trade protectionism measures and the imposition of tariff increases on China." The central bank said the yuan remained "stable and strong against the basket of currencies" and said it would "resolutely crack down on short-term speculation and maintain stable operation of the foreign exchange market and stabilize market expectations." It went on to say that it had the "experience, confidence and ability to keep the RMB exchange rate basically stable at a reasonable and balanced level." Julian Evans-Pritchard, senior China economist with Capital Economics, said the PBOC has "effectively weaponized the exchange rate" by linking the currency with the US trade war. "Given that their goal is presumably to offset some of the impact from additional US tariffs, they are likely to allow the currency to weaken further, probably by 5-10 per cent over the coming quarters," said Evans-Pritchard.

US designates China a currency manipulator as yuan hits record low

US President Donald Trump said on Saturday that things are going well with <a href="https://www.wionews.com/world/us-tariffs-serious-violation-will-take-countermeasures-china-240145">China</a>, insisting US consumers are not paying for import taxes he has imposed on goods from that country although economists say Americans are footing the bill.

"Things are going along very well with China. They are paying us Tens of Billions of Dollars, made possible by their monetary devaluations and pumping in massive amounts of cash to keep their system going. So far our consumer is paying nothing - and no inflation. No help from Fed!" Trump said on Twitter.

He also said - without presenting evidence - that countries are asking to negotiate "REAL trade deals," saying on Twitter, "They don't want to be targeted for Tariffs by the US"

Trump abruptly decided on Thursday to slap <a href="https://www.wionews.com/world/slapping-tariffs-not-a-constructive-way-to-solve-trade-war-china-to-us-240074">10 per cent tariffs</a> $300 billion in Chinese imports, stunning financial markets and ending a month-long trade truce.<div class="videoWrapper trancodeVideo"><iframe src="https://www.wionews.com/videos/wion-dispatch-trump-to-impose-fresh-tariffs-on-china-240306/embed" width="560" height="350" style="width:100%;max-width:560px;" class="includeVideo" frameborder="0" autoplay=1 allowfullscreen></iframe></div>

China vowed on Friday to fight back.

China's new ambassador to the United Nations, Zhang Jun, said Beijing would take "necessary countermeasures" to protect its rights and bluntly described Trump's move as "an irrational, irresponsible act."

"China's position is very clear that if US&nbsp;wishes to talk, then we will talk, if they want to fight, then we will fight," Zhang told reporters in New York, also signalling that trade tensions could hurt cooperation between the countries on dealing with North Korea.

Trump said China had to do a lot in order to turn things around in the trade talks and repeated an earlier threat to substantially increase tariffs if they failed to do so.

"We can't just go and make an even deal with China. We have to go and make a better deal with China," Trump told reporters at the White House.

Tariffs are intended to make foreign goods more expensive to boost domestic producers unless international exporters reduce prices. But there has been no evidence that China is cutting prices to accommodate Trump's tariffs.

A study published by the National Bureau of Economic Research in March found that all of the cost of tariffs imposed in 2018 was passed on to US consumers.

US President Donald Trump said on Saturday that things are going well with China, insisting US consumers are not paying for import taxes he has imposed on goods from that country although economists say Americans are footing the bill.

US President Donald Trump said on Saturday that things are going well with China, insisting US consumers are not paying for import taxes he has imposed on goods from that country although economists say Americans are footing the bill. "Things are going along very well with China. They are paying us Tens of Billions of Dollars, made possible by their monetary devaluations and pumping in massive amounts of cash to keep their system going. So far our consumer is paying nothing - and no inflation. No help from Fed!" Trump said on Twitter. He also said - without presenting evidence - that countries are asking to negotiate "REAL trade deals," saying on Twitter, "They don't want to be targeted for Tariffs by the US" Trump abruptly decided on Thursday to slap 10 per cent tariffs $300 billion in Chinese imports, stunning financial markets and ending a month-long trade truce. China vowed on Friday to fight back. China's new ambassador to the United Nations, Zhang Jun, said Beijing would take "necessary countermeasures" to protect its rights and bluntly described Trump's move as "an irrational, irresponsible act." "China's position is very clear that if US wishes to talk, then we will talk, if they want to fight, then we will fight," Zhang told reporters in New York, also signalling that trade tensions could hurt cooperation between the countries on dealing with North Korea. Trump said China had to do a lot in order to turn things around in the trade talks and repeated an earlier threat to substantially increase tariffs if they failed to do so. "We can't just go and make an even deal with China. We have to go and make a better deal with China," Trump told reporters at the White House. Tariffs are intended to make foreign goods more expensive to boost domestic producers unless international exporters reduce prices. But there has been no evidence that China is cutting prices to accommodate Trump's tariffs. A study published by the National Bureau of Economic Research in March found that all of the cost of tariffs imposed in 2018 was passed on to US consumers.

Trump defends stance on China trade after new tariffs, says 'things are going well'

&nbsp;US&nbsp;job growth slowed in July and wages picked up moderately, which together with an escalation in<a href="https://www.wionews.com/.../us-china-trade-war-is-making-china-stronger- 234526"> trade tensions between the United States and Chin</a>a could give the Federal Reserve ammunition to cut interest rates again next month.

The Labour Department's closely watched monthly employment report on Friday came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting September 1, a move that led financial markets to almost fully price in a rate cut in September.

The U.S. central bank on Wednesday cut its short-term interest rate for the first time since 2008. Fed Chairman Jerome Powell described the widely anticipated 25-basis-point monetary policy easing as insurance against downside risks to the 10-year-old economic expansion, the longest in history, from trade tensions and slowing global growth. (Full Story)

Nonfarm payrolls increased by 164,000 jobs last month, the government said.

The economy created 41,000 fewer jobs in May and June than previously reported. July's job gains were in line with economists' expectations.

The average workweek fell to its lowest level in nearly two years.

Before the release of the employment report, fed funds futures implied traders saw a 96% chance of the Fed cutting rates again next month, according to CME Group's FedWatch tool.

The US-China trade war is taking a toll on manufacturing, with production declining for two straight quarters.

Business investment has also been hit, contracting in the second quarter for the first time in more than three years and contributing to holding back the economy to a 2.1% annualized growth rate.

The economy grew at a 3.1% pace in the first quarter.

July payrolls marked a further deceleration in job growth from an average of 223,000 per month in 2018.

Economists say it is unclear whether the loss of momentum in hiring was due to ebbing demand for labour or a shortage of qualified workers.

Still, the pace of job growth remains well above the roughly 100,000 needed per month to keep up with growth in the working-age population.

The unemployment rate was unchanged at 3.7% in July.

Despite the lowest jobless rate in nearly 50 years, wage growth remains moderate, contributing to a tame inflation environment, which could be supportive of another rate cut next month.

Inflation has undershot the Fed's 2% target this year, rising 1.6% on a year-on-year basis in June after gaining 1.5% in May.

Average hourly earnings rose 8 cents, or 0.3% in July, after the same increase in June.

That lifted the annual increase in wages to 3.2% in July from 3.1% in June.

The trend in wage gains has slowed from late 2018 when wages were rising at their fastest rate in a decade.

Even with the step-down in job and wage gains, the labour market is supporting the economy as the stimulus from last year's $1.5 trillion tax cut package fades. Economic growth in the third quarter is seen at around a 1.5% rate.

Construction payrolls increased by 4,000 jobs after shooting up by 18,000 jobs in June.

Manufacturing employment rose by 16,000 jobs after increasing by 12,000 in June.

The strong manufacturing job gains are at odds with weakening activity in the sector.

A survey on Thursday showed manufacturing employment hit its lowest level since November 2016 in July.

The sector, which accounts for more than 12% of the US&nbsp;economy, is being hobbled by trade tensions, weakening global growth, an inventory bulge - concentrated in the automotive industry - and design problems at aerospace giant Boeing Co BA.N.

Factory workers put in fewer hours last month.

The manufacturing workweek dropped 0.3 hours to 40.4 hours, the lowest since November 2011.

That contributed to the overall average workweek falling to 34.3 hours, the fewest since September 2017, from 34.4 hours in June.

Government employment increased by 16,000 jobs in July, adding to June's gain of 14,000.

US job growth slowed in July and wages picked up moderately, which together with an escalation in trade tensions between the United States and China could give the Federal Reserve ammunition to cut interest rates again next month.

US job growth slowed in July and wages picked up moderately, which together with an escalation in trade tensions between the United States and China could give the Federal Reserve ammunition to cut interest rates again next month. The Labour Department's closely watched monthly employment report on Friday came a day after President Donald Trump announced an additional 10% tariff on $300 billion worth of Chinese imports starting September 1, a move that led financial markets to almost fully price in a rate cut in September. The U.S. central bank on Wednesday cut its short-term interest rate for the first time since 2008. Fed Chairman Jerome Powell described the widely anticipated 25-basis-point monetary policy easing as insurance against downside risks to the 10-year-old economic expansion, the longest in history, from trade tensions and slowing global growth. (Full Story) Nonfarm payrolls increased by 164,000 jobs last month, the government said. The economy created 41,000 fewer jobs in May and June than previously reported. July's job gains were in line with economists' expectations. The average workweek fell to its lowest level in nearly two years. Before the release of the employment report, fed funds futures implied traders saw a 96% chance of the Fed cutting rates again next month, according to CME Group's FedWatch tool. The US-China trade war is taking a toll on manufacturing, with production declining for two straight quarters. Business investment has also been hit, contracting in the second quarter for the first time in more than three years and contributing to holding back the economy to a 2.1% annualized growth rate. The economy grew at a 3.1% pace in the first quarter. July payrolls marked a further deceleration in job growth from an average of 223,000 per month in 2018. Economists say it is unclear whether the loss of momentum in hiring was due to ebbing demand for labour or a shortage of qualified workers. Still, the pace of job growth remains well above the roughly 100,000 needed per month to keep up with growth in the working-age population. The unemployment rate was unchanged at 3.7% in July. Despite the lowest jobless rate in nearly 50 years, wage growth remains moderate, contributing to a tame inflation environment, which could be supportive of another rate cut next month. Inflation has undershot the Fed's 2% target this year, rising 1.6% on a year-on-year basis in June after gaining 1.5% in May. Average hourly earnings rose 8 cents, or 0.3% in July, after the same increase in June. That lifted the annual increase in wages to 3.2% in July from 3.1% in June. The trend in wage gains has slowed from late 2018 when wages were rising at their fastest rate in a decade. Even with the step-down in job and wage gains, the labour market is supporting the economy as the stimulus from last year's $1.5 trillion tax cut package fades. Economic growth in the third quarter is seen at around a 1.5% rate. Construction payrolls increased by 4,000 jobs after shooting up by 18,000 jobs in June. Manufacturing employment rose by 16,000 jobs after increasing by 12,000 in June. The strong manufacturing job gains are at odds with weakening activity in the sector. A survey on Thursday showed manufacturing employment hit its lowest level since November 2016 in July. The sector, which accounts for more than 12% of the US economy, is being hobbled by trade tensions, weakening global growth, an inventory bulge - concentrated in the automotive industry - and design problems at aerospace giant Boeing Co BA.N. Factory workers put in fewer hours last month. The manufacturing workweek dropped 0.3 hours to 40.4 hours, the lowest since November 2011. That contributed to the overall average workweek falling to 34.3 hours, the fewest since September 2017, from 34.4 hours in June. Government employment increased by 16,000 jobs in July, adding to June's gain of 14,000.

US employment growth slows in July; wages pick up

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose <a href="https://www.wionews.com/world/us-to-hit-300-billion-worth-of-chinese-goods-with-10-tariff-donald-trump-240021">tariffs on $300 billion</a> in Chinese goods in an escalation of their trade war.

The commerce ministry said in a statement that President Donald Trump's move to impose the new tariffs on September 1 was a "serious violation" of a truce that was reached with Chinese leader Xi Jinping in June.

It did not specify what kind of countermeasures it would take, but in the past China has hinted that it could restrict exports of rare earths that are vital to the US technology industry, and it is also drawing up a blacklist of "unreliable" foreign companies.

Earlier, China's foreign minister had said tariffs were "not a constructive" way to solve the US trade war after President Donald Trump threatened to hit $300 billion worth of Chinese goods with new duties.

"Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it's not the correct way," Wang Yi said on the sidelines of a meeting of Southeast Asia's top diplomats in Bangkok, according to footage broadcast on a Chinese television station.

US President Donald Trump had announced on Thursday he will hit China with punitive tariffs on another $300 billion in goods, prompting Beijing to warn it was the wrong way to resolve the trade war.

The sudden deterioration meant the world's two largest economies have now erected trade barriers covering virtually all of their $660 billion in annual trade in merchandise - confirming economists' fears and sending shudders through Wall Street.

The 10 per cent duties will take effect September 1, and come on top of the 25 per cent tariffs on $250 billion in imports already in place.

He later raised the possibility he could increase the duties further.

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose tariffs on $300 billion in Chinese goods in an escalation of their trade war.

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose tariffs on $300 billion in Chinese goods in an escalation of their trade war. The commerce ministry said in a statement that President Donald Trump's move to impose the new tariffs on September 1 was a "serious violation" of a truce that was reached with Chinese leader Xi Jinping in June. It did not specify what kind of countermeasures it would take, but in the past China has hinted that it could restrict exports of rare earths that are vital to the US technology industry, and it is also drawing up a blacklist of "unreliable" foreign companies. Earlier, China's foreign minister had said tariffs were "not a constructive" way to solve the US trade war after President Donald Trump threatened to hit $300 billion worth of Chinese goods with new duties. "Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it's not the correct way," Wang Yi said on the sidelines of a meeting of Southeast Asia's top diplomats in Bangkok, according to footage broadcast on a Chinese television station. US President Donald Trump had announced on Thursday he will hit China with punitive tariffs on another $300 billion in goods, prompting Beijing to warn it was the wrong way to resolve the trade war. The sudden deterioration meant the world's two largest economies have now erected trade barriers covering virtually all of their $660 billion in annual trade in merchandise - confirming economists' fears and sending shudders through Wall Street. The 10 per cent duties will take effect September 1, and come on top of the 25 per cent tariffs on $250 billion in imports already in place. He later raised the possibility he could increase the duties further.

US tariffs serious violation, will take countermeasures: China

What is next in US-China trade talks?

Top US and Chinese trade officials met in Shanghai on Wednesday for talks in a bid to end a year-long trade war, despite low expectations for progress and combative remarks from <a href="https://www.wionews.com/world/donald-trump-tears-into-china-on-twitter-as-trade-talks-resume-239492">US President Donald Trump</a>.

As US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin landed in the Chinese commercial hub on Tuesday, Trump accused Beijing on Twitter of stalling, and warned of a worse outcome for <a href="https://www.wionews.com/business-economy/huawei-warns-on-us-ban-after-china-smartphone-sales-drive-first-half-revenue-239507">China if it continued to do so</a>.

This week's meetings, the first in-person trade talks since a G20 truce last month, come as an official survey showed China's factory activity shrank for the third month in a row in July, underlining the growing strains placed on the world's second-biggest economy by the trade war.

Vice Premier Liu He met and shook hands with Lighthizer and Mnuchin at Shanghai's Xijiao State Guest Hotel in front of media on Wednesday morning ahead of the day's negotiations, but the officials did not make any public remarks.

Watch Video:

<div class="videoWrapper trancodeVideo"><iframe src="https://www.wionews.com/videos/fresh-us-china-trade-talks-to-end-trade-war-239425/embed" width="560" height="350" style="width:100%;max-width:560px;" class="includeVideo" frameborder="0" autoplay=1 allowfullscreen></iframe></div>

The trade row has dragged on for more than a year, with the world's two largest economies slapping billions of dollars of tariffs on each other's imports, disrupting global supply chains and shaking financial markets.

The Shanghai talks were expected to centre on "goodwill" gestures, such as Chinese commitments to purchase US agricultural commodities and steps by the United States to ease some sanctions on Chinese telecoms equipment giant Huawei Technologies Co Ltd.

Trump had said on Twitter that China appeared to be backing off on a pledge to buy US farm goods, and he warned that if China stalled in the hope that he wouldn't win re-election in the November 2020 US presidential contest, the outcome will be worse for China.

"The problem with them waiting ... is that if &amp; when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all," Trump said.

China's state-owned Global Times tabloid said that US negotiators should show sincerity and hold "reasonable expectations" after making "unrealistic demands that infringe upon China's sovereignty and dignity".

It said that if "Washington still holds the illusion that Beijing will somehow cave in and compromise on issues concerning sovereignty and other related core interests to reach a deal, then no deal is fine".

The US and Chinese delegations were scheduled to have had dinner at Shanghai's historic riverfront Fairmont Peace Hotel on Tuesday night, but both teams avoided the media and did not make public comments.

The US Commerce Department put Huawei on a national security blacklist in May, effectively banning US firms from selling to Huawei, a move that enraged Chinese officials.

Trump had agreed last month to allow some sales to Huawei in a meeting with Chinese President Xi Jinping, but so far, US semiconductor and software makers are still mostly in the dark about the administration's plans.

In Sao Paulo on Tuesday, US Commerce Secretary Wilbur Ross said decisions on license applications by US firms to resume some sales to Huawei could come as early as next week.

Top US and Chinese trade officials met in Shanghai on Wednesday for talks in a bid to end a year-long trade war, despite low expectations for progress and combative remarks from US President Donald Trump.

Top US and Chinese trade officials met in Shanghai on Wednesday for talks in a bid to end a year-long trade war, despite low expectations for progress and combative remarks from US President Donald Trump. As US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin landed in the Chinese commercial hub on Tuesday, Trump accused Beijing on Twitter of stalling, and warned of a worse outcome for China if it continued to do so. This week's meetings, the first in-person trade talks since a G20 truce last month, come as an official survey showed China's factory activity shrank for the third month in a row in July, underlining the growing strains placed on the world's second-biggest economy by the trade war. Vice Premier Liu He met and shook hands with Lighthizer and Mnuchin at Shanghai's Xijiao State Guest Hotel in front of media on Wednesday morning ahead of the day's negotiations, but the officials did not make any public remarks. Watch Video: The trade row has dragged on for more than a year, with the world's two largest economies slapping billions of dollars of tariffs on each other's imports, disrupting global supply chains and shaking financial markets. The Shanghai talks were expected to centre on "goodwill" gestures, such as Chinese commitments to purchase US agricultural commodities and steps by the United States to ease some sanctions on Chinese telecoms equipment giant Huawei Technologies Co Ltd. Trump had said on Twitter that China appeared to be backing off on a pledge to buy US farm goods, and he warned that if China stalled in the hope that he wouldn't win re-election in the November 2020 US presidential contest, the outcome will be worse for China. "The problem with them waiting ... is that if & when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all," Trump said. China's state-owned Global Times tabloid said that US negotiators should show sincerity and hold "reasonable expectations" after making "unrealistic demands that infringe upon China's sovereignty and dignity". It said that if "Washington still holds the illusion that Beijing will somehow cave in and compromise on issues concerning sovereignty and other related core interests to reach a deal, then no deal is fine". The US and Chinese delegations were scheduled to have had dinner at Shanghai's historic riverfront Fairmont Peace Hotel on Tuesday night, but both teams avoided the media and did not make public comments. The US Commerce Department put Huawei on a national security blacklist in May, effectively banning US firms from selling to Huawei, a move that enraged Chinese officials. Trump had agreed last month to allow some sales to Huawei in a meeting with Chinese President Xi Jinping, but so far, US semiconductor and software makers are still mostly in the dark about the administration's plans. In Sao Paulo on Tuesday, US Commerce Secretary Wilbur Ross said decisions on license applications by US firms to resume some sales to Huawei could come as early as next week.

US, China trade talks begin amid Trump's threat of 'tougher' deal ahead

Hong Kong's economy remained sluggish in the second quarter amid the ongoing US-China trade dispute, government figures released Wednesday showed, as weeks of civil unrest threatened further headwinds in the financial hub.

Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, roiling global financial markets and weighing heavily on manufacturing output in both countries.

The city's economy grew 0.6 per cent in the three months to June, the same rate as the first quarter but down from the 1.2 per cent recorded at the end of last year.

"Overall economic performance was subdued," the government's statistics department said in a statement, blaming a 5.4 per cent drop in exports and "sluggish" domestic demand.

US officials met their Chinese counterparts in Shanghai on Wednesday in an attempt to resolve the yearlong trade dispute, but talks ended earlier than expected without signs of concrete progress.

The financial hub's chief executive Carrie Lam had earlier warned business leaders that subdued growth was forecast to continue through the end of the year as the trade row continued.

There was "no room for optimism for the second quarter and the entire year", Lam said Wednesday, according to a government statement.

Semi-autonomous <a href="https://www.wionews.com/world/hong-kong-protesters-appear-in-court-to-face-riot-charge-239669">Hong Kong has endured more than seven weeks of protests</a> that began with a government bid to introduce a law that would have allowed extraditions to mainland China and have since evolved into a movement for deeper democratic reforms.

Analysts say that the unrest could signal further economic woes in the city.

"Growing discontent with the heavy-handed police response, public backlashes, and the government's seeming inability to address the public's concerns could cause long-lasting damage to business confidence," said Andrew Fennell, director of credit rating agency Fitch.

Hong Kong's economy remained sluggish in the second quarter amid the ongoing US-China trade dispute, government figures released Wednesday showed, as weeks of civil unrest threatened further headwinds in the financial hub.

Hong Kong's economy remained sluggish in the second quarter amid the ongoing US-China trade dispute, government figures released Wednesday showed, as weeks of civil unrest threatened further headwinds in the financial hub. Beijing and Washington have already imposed duties on more than $360 billion in two-way trade, roiling global financial markets and weighing heavily on manufacturing output in both countries. The city's economy grew 0.6 per cent in the three months to June, the same rate as the first quarter but down from the 1.2 per cent recorded at the end of last year. "Overall economic performance was subdued," the government's statistics department said in a statement, blaming a 5.4 per cent drop in exports and "sluggish" domestic demand. US officials met their Chinese counterparts in Shanghai on Wednesday in an attempt to resolve the yearlong trade dispute, but talks ended earlier than expected without signs of concrete progress. The financial hub's chief executive Carrie Lam had earlier warned business leaders that subdued growth was forecast to continue through the end of the year as the trade row continued. There was "no room for optimism for the second quarter and the entire year", Lam said Wednesday, according to a government statement. Semi-autonomous Hong Kong has endured more than seven weeks of protests that began with a government bid to introduce a law that would have allowed extraditions to mainland China and have since evolved into a movement for deeper democratic reforms. Analysts say that the unrest could signal further economic woes in the city. "Growing discontent with the heavy-handed police response, public backlashes, and the government's seeming inability to address the public's concerns could cause long-lasting damage to business confidence," said Andrew Fennell, director of credit rating agency Fitch.

Hong Kong growth stalls amid trade war, protests

Talks between US and Chinese trade officials seeking ways to end a<a href="https://www.wionews.com/world/us-china-trade-talks-begin-amid-trumps-threat-of-tougher-deal-ahead-239601"> year-long trade war</a> lasted barely half a day before ending on Wednesday with a terse response from China's foreign ministry to US President Donald Trump's warning not to stall.

As US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had landed in Shanghai on Tuesday as Trump accused Beijing on Twitter of stalling, and warned of a worse outcome for China if it continued to do so.

"The problem with them waiting ... is that if &amp; when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all," Trump had said on Twitter.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through. Our Economy has become MUCH larger than the Chinese Economy is last 3 years....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1156159999833513984?ref_src=twsrc%5Etfw">July 30, 2019</a></blockquote>
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Chinese foreign ministry spokeswoman Hua Chunying, responding to a question about those tweets, said she was not aware of the latest developments during talks, but that it was clear it was the United States who continued to "flip flop".

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<blockquote class="twitter-tweet">
...to ripoff the USA, even bigger and better than ever before. The problem with them waiting, however, is that if &amp; when I win, the deal that they get will be much tougher than what we are negotiating now...or no deal at all. We have all the cards, our past leaders never got it!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1156160014173822977?ref_src=twsrc%5Etfw">July 30, 2019</a></blockquote>
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"I believe it doesn't make any sense for the US to exercise its campaign of maximum pressure at this time. It's pointless to tell others to take medication when you're the one who is sick," Hua told a news briefing.

This week's meetings, the first in-person trade talks since a G20 truce last month, amounted to a working dinner on Tuesday at Shanghai's historic riverfront Fairmont Peace Hotel and a half-day of negotiations on Wednesday. Neither team made immediate public comments.

Chinese Vice Premier Liu He, who leads the Chinese delegation, waved off Lighthizer, Mnuchin and other US officials as their motorcade pulled away from Shanghai's Xijiao State Guest Hotel following a group photo session that concluded around 1:45pm(local time), about 30 minutes before it was originally scheduled to begin.

A US government official told Reuters that the US officials were headed to the airport.

The trade war between the world's two largest economies has disrupted global supply chains and shaken financial markets as each side has slapped tariffs on billions of dollars of each other's goods.

An official Chinese government survey released on Wednesday showed China's factory activity shrank for the third month in a row in July, underlining the growing strains the row has placed on the No. 2 economy.

The Shanghai talks were expected to centre on "goodwill" gestures, such as Chinese commitments to purchase US agricultural commodities and steps by the United States to ease some sanctions on Chinese telecoms equipment giant Huawei Technologies Co Ltd, a person familiar with the discussions told Reuters earlier.

Those issues are somewhat removed from the more core US complaints in the trade dispute, including Chinese state subsidies, forced technology transfers and intellectual property violations.

Trump and Chinese President Xi Jinping agreed in June at the G20 summit in Osaka, Japan, to restart trade talks that stalled in May, after Washington accused Beijing of reneging on major portions of a draft agreement -- a collapse in the talks that prompted a steep US tariff hike on $200 billion of Chinese goods.

The US Commerce Department put Huawei on a national security blacklist in May, effectively banning US firms from selling to Huawei, a move that enraged Chinese officials.

Talks between US and Chinese trade officials seeking ways to end a year-long trade war lasted barely half a day before ending on Wednesday with a terse response from China's foreign ministry to US President Donald Trump's warning not to stall.

Talks between US and Chinese trade officials seeking ways to end a year-long trade war lasted barely half a day before ending on Wednesday with a terse response from China's foreign ministry to US President Donald Trump's warning not to stall. As US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin had landed in Shanghai on Tuesday as Trump accused Beijing on Twitter of stalling, and warned of a worse outcome for China if it continued to do so. "The problem with them waiting ... is that if & when I win, the deal that they get will be much tougher than what we are negotiating now ... or no deal at all," Trump had said on Twitter. China is doing very badly, worst year in 27 - was supposed to start buying our agricultural product now - no signs that they are doing so. That is the problem with China, they just don’t come through. Our Economy has become MUCH larger than the Chinese Economy is last 3 years.... — Donald J. Trump (@realDonaldTrump) July 30, 2019 × Chinese foreign ministry spokeswoman Hua Chunying, responding to a question about those tweets, said she was not aware of the latest developments during talks, but that it was clear it was the United States who continued to "flip flop". ...to ripoff the USA, even bigger and better than ever before. The problem with them waiting, however, is that if & when I win, the deal that they get will be much tougher than what we are negotiating now...or no deal at all. We have all the cards, our past leaders never got it! — Donald J. Trump (@realDonaldTrump) July 30, 2019 × "I believe it doesn't make any sense for the US to exercise its campaign of maximum pressure at this time. It's pointless to tell others to take medication when you're the one who is sick," Hua told a news briefing. This week's meetings, the first in-person trade talks since a G20 truce last month, amounted to a working dinner on Tuesday at Shanghai's historic riverfront Fairmont Peace Hotel and a half-day of negotiations on Wednesday. Neither team made immediate public comments. Chinese Vice Premier Liu He, who leads the Chinese delegation, waved off Lighthizer, Mnuchin and other US officials as their motorcade pulled away from Shanghai's Xijiao State Guest Hotel following a group photo session that concluded around 1:45pm(local time), about 30 minutes before it was originally scheduled to begin. A US government official told Reuters that the US officials were headed to the airport. The trade war between the world's two largest economies has disrupted global supply chains and shaken financial markets as each side has slapped tariffs on billions of dollars of each other's goods. An official Chinese government survey released on Wednesday showed China's factory activity shrank for the third month in a row in July, underlining the growing strains the row has placed on the No. 2 economy. The Shanghai talks were expected to centre on "goodwill" gestures, such as Chinese commitments to purchase US agricultural commodities and steps by the United States to ease some sanctions on Chinese telecoms equipment giant Huawei Technologies Co Ltd, a person familiar with the discussions told Reuters earlier. Those issues are somewhat removed from the more core US complaints in the trade dispute, including Chinese state subsidies, forced technology transfers and intellectual property violations. Trump and Chinese President Xi Jinping agreed in June at the G20 summit in Osaka, Japan, to restart trade talks that stalled in May, after Washington accused Beijing of reneging on major portions of a draft agreement -- a collapse in the talks that prompted a steep US tariff hike on $200 billion of Chinese goods. The US Commerce Department put Huawei on a national security blacklist in May, effectively banning US firms from selling to Huawei, a move that enraged Chinese officials.

No sense for US to exercise maximum pressure, says China as trade meeting ends

China-U.S. negotiators will meet for the first time in 3 months in Shangai, China. This will be the first face-to-face trade talk since the talks stopped. This trade talk will be initiated at China's Financial Club.

Fresh U.S.-China trade talks to end trade war?

The United States has shipped several million tonnes of soybeans to China since the two countries' leaders met in June, Chinese state media said on Sunday, an apparent sign of <a href="https://www.wionews.com/world/to-survive-trade-war-some-us-importers-embark-on-major-revamps-of-product-lines-238323">goodwill before trade talks</a> in Shanghai this week.

The US-China trade war has curbed the export of US crops to China, with soybean sales falling sharply after <a href="https://www.wionews.com/world/chinas-2019-growth-seen-slowing-to-62-per-cent-as-trade-war-weighs-reuters-poll-234697">Beijing slapped tariffs</a> of 25 per cent&nbsp;on American cargoes.

China has made enquiries to US suppliers for the purchase of soybeans, cotton, pork sorghum and other agricultural products since July 19, and some sales have been made, state broadcaster CCTV said, citing China's National Development and Reform Commission and Ministry of Commerce.

"As long as the American agricultural products are reasonably priced and of good quality, it is expected that there will be new purchases," the report said.

Companies involved in the sales have applied for exclusions to tariffs on agricultural goods with Chinese customs officials, it said.

It added that the moves show China's willingness to promote US&nbsp;products and make good on a consensus reached between presidents Donald Trump and Xi Jinping at the G20 summit in Osaka in June.

Chinese and US negotiators are set to meet in Shanghai this week for the first time since the summit, with talks to start on July 30.

Earlier this month, the Trump administration said it would exempt a relatively narrow list of 110 Chinese products from tariffs, including medical equipment and key capacitors.

China brought in 614,805 tonnes of soybeans from the United States in June, down 2.5 per cent from June 2018 and down 37 per cent from 977,024 tonnes in May, customs data released on Saturday showed.

The state media report on Sunday said the United States should "take concrete measures to implement its relevant commitments and create favourable conditions for bilateral economic and trade cooperation".

The United States has shipped several million tonnes of soybeans to China since the two countries' leaders met in June, Chinese state media said on Sunday, an apparent sign of goodwill before trade talks in Shanghai this week.

The United States has shipped several million tonnes of soybeans to China since the two countries' leaders met in June, Chinese state media said on Sunday, an apparent sign of goodwill before trade talks in Shanghai this week. The US-China trade war has curbed the export of US crops to China, with soybean sales falling sharply after Beijing slapped tariffs of 25 per cent on American cargoes. China has made enquiries to US suppliers for the purchase of soybeans, cotton, pork sorghum and other agricultural products since July 19, and some sales have been made, state broadcaster CCTV said, citing China's National Development and Reform Commission and Ministry of Commerce. "As long as the American agricultural products are reasonably priced and of good quality, it is expected that there will be new purchases," the report said. Companies involved in the sales have applied for exclusions to tariffs on agricultural goods with Chinese customs officials, it said. It added that the moves show China's willingness to promote US products and make good on a consensus reached between presidents Donald Trump and Xi Jinping at the G20 summit in Osaka in June. Chinese and US negotiators are set to meet in Shanghai this week for the first time since the summit, with talks to start on July 30. Earlier this month, the Trump administration said it would exempt a relatively narrow list of 110 Chinese products from tariffs, including medical equipment and key capacitors. China brought in 614,805 tonnes of soybeans from the United States in June, down 2.5 per cent from June 2018 and down 37 per cent from 977,024 tonnes in May, customs data released on Saturday showed. The state media report on Sunday said the United States should "take concrete measures to implement its relevant commitments and create favourable conditions for bilateral economic and trade cooperation".

Millions of tonnes of US soy shipped to China: State media on trade consensus

A trade war between two of the world's biggest economies - United States and China - is affecting all the ASEAN members, said Thailand Ambassador Chutintorn Sam Gongsakdi.

"It's affecting all of the ASEAN members. When such big players, drivers of the global economy, play the trade war game, it affects all of us. Thailand's growth numbers have been revised twice already. Like my Indonesian colleague said: 'when markets closed, we need to open markets in other ways'. Politicians have to satisfy their constituencies today, but when you negotiate trade agreements, you do it for the future. That is what we have to help each other in," he said at WION World Order.

"Trade wars like that are foolish. We have been through it before, but sometimes people have political needs and have to play the nationalism card. But in the end, it's not much of nationalism. The people lose," he added.

The governments of the world's largest economies have levied billions of dollars of tariffs on each other's imports, disrupted global supply chains and shaken financial markets in their dispute over how China does business with the rest of the world.

US President Donald Trump and his Chinese counterpart Xi Jinping have held discussions to find a solution to end the year-long trade war, but not much headway has been made. Talks collapsed in May after China reneged on promises made in earlier negotiations, according to the US government.

At a meeting with Xi in late June, Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed talks. The lead negotiators have since spoken by phone but not met face-to-face.

That meeting is expected to take place next week.

Beijing and Washington remain far apart on the terms of any deal. The United States wants China to correct what it sees as decades of unfair and illegal trading practices. China says both sides need to come out of any deal with concessions.

The International Monetary Fund cut its forecast for global growth on Tuesday amid concerns over various trade and tariff issues, including the US-China trade dispute.

A trade war between two of the world's biggest economies - United States and China - is affecting all the ASEAN members, said Thailand Ambassador Chutintorn Sam Gongsakdi.

A trade war between two of the world's biggest economies - United States and China - is affecting all the ASEAN members, said Thailand Ambassador Chutintorn Sam Gongsakdi. "It's affecting all of the ASEAN members. When such big players, drivers of the global economy, play the trade war game, it affects all of us. Thailand's growth numbers have been revised twice already. Like my Indonesian colleague said: 'when markets closed, we need to open markets in other ways'. Politicians have to satisfy their constituencies today, but when you negotiate trade agreements, you do it for the future. That is what we have to help each other in," he said at WION World Order. "Trade wars like that are foolish. We have been through it before, but sometimes people have political needs and have to play the nationalism card. But in the end, it's not much of nationalism. The people lose," he added. The governments of the world's largest economies have levied billions of dollars of tariffs on each other's imports, disrupted global supply chains and shaken financial markets in their dispute over how China does business with the rest of the world. US President Donald Trump and his Chinese counterpart Xi Jinping have held discussions to find a solution to end the year-long trade war, but not much headway has been made. Talks collapsed in May after China reneged on promises made in earlier negotiations, according to the US government. At a meeting with Xi in late June, Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed talks. The lead negotiators have since spoken by phone but not met face-to-face. That meeting is expected to take place next week. Beijing and Washington remain far apart on the terms of any deal. The United States wants China to correct what it sees as decades of unfair and illegal trading practices. China says both sides need to come out of any deal with concessions. The International Monetary Fund cut its forecast for global growth on Tuesday amid concerns over various trade and tariff issues, including the US-China trade dispute.

Trade war like the one going on between US and China foolish: Thailand Ambassador at WION World Order

The Federal Bureau of Investigation has nearly 1,000 investigations open into <a href="https://www.wionews.com/world/us-senators-concerned-about-chinese-access-to-intellectual-property-32783">attempted intellectual property theft</a>, nearly all of them involving Chinese, FBI director Christopher Wray said Tuesday.

"There is no country that poses a more severe counterintelligence threat to this country right now than China... and I don't say it lightly," Wray told the Senate Judiciary Committee.

"We have as we speak probably about a thousand-plus investigations all across the country involving attempted theft of US intellectual property, whether it's economic espionage or counter proliferation, almost all leading back to China," he said.

"It is a threat that is deep and diverse and wide and vexing.... Make no mistake that this is a high priority for all of us," Wray added.

Arrests of people involved in Chinese operations to steal US corporate secrets, whether for corporate reasons or to obtain defense secrets, have risen sharply in recent years.

Washington says the problem has been exacerbated by Beijing's "Thousand Talents" program which offers financial awards to Chinese professionals overseas who bring advanced technology back to China.

The concern has given rise to a tightening of visas for Chinese researchers seeking to travel to the United States.

In June the US Department of Energy moved to block its scientists from participating in the "Thousand Talents" program in order to protect US competitive strengths and national security.

Wray said the Chinese government is using "not just government officials, but private sector entities, non-traditional collectors, etc, to steal their way up the economic ladder at our expense."

"China is fighting a generational fight here," he said.

"I want to be clear. This is not about the Chinese people as a whole and it is certainly not about Chinese-Americans in this country," he added.

The Federal Bureau of Investigation has nearly 1,000 investigations open into attempted intellectual property theft, nearly all of them involving Chinese, FBI director Christopher Wray said Tuesday.

The Federal Bureau of Investigation has nearly 1,000 investigations open into attempted intellectual property theft, nearly all of them involving Chinese, FBI director Christopher Wray said Tuesday. "There is no country that poses a more severe counterintelligence threat to this country right now than China... and I don't say it lightly," Wray told the Senate Judiciary Committee. "We have as we speak probably about a thousand-plus investigations all across the country involving attempted theft of US intellectual property, whether it's economic espionage or counter proliferation, almost all leading back to China," he said. "It is a threat that is deep and diverse and wide and vexing.... Make no mistake that this is a high priority for all of us," Wray added. Arrests of people involved in Chinese operations to steal US corporate secrets, whether for corporate reasons or to obtain defense secrets, have risen sharply in recent years. Washington says the problem has been exacerbated by Beijing's "Thousand Talents" program which offers financial awards to Chinese professionals overseas who bring advanced technology back to China. The concern has given rise to a tightening of visas for Chinese researchers seeking to travel to the United States. In June the US Department of Energy moved to block its scientists from participating in the "Thousand Talents" program in order to protect US competitive strengths and national security. Wray said the Chinese government is using "not just government officials, but private sector entities, non-traditional collectors, etc, to steal their way up the economic ladder at our expense." "China is fighting a generational fight here," he said. "I want to be clear. This is not about the Chinese people as a whole and it is certainly not about Chinese-Americans in this country," he added.

Over 1,000 US intellectual property theft lead back to China: FBI director Christopher Wray to Senate Judiciary Committee

China has been rattled by three events. The first is the trade and technology dispute with the United States, which seems no nearer to resolution. The second is Washington’s decision to sell $2.20 billion (Rs 15,000 crore) worth of advanced military hardware to Taiwan that China regards as a part of the mainland. The third is the cascading series of violent protests in Hong Kong over China’s attempt to impose its authoritarian will on the thriving mercantile city that Britain handed back to China in 1997 under a 50-year agreement that guarantees its democratic freedoms.

Each of these events has the potential to erode China’s global credibility as it seeks to replace the United States as the world’s preeminent economic superpower.

The US overtook imperial Britain as the world’s largest economy in the 1890s. China’s 2019 GDP of $27.4 trillion by purchasing power parity (PPP) is already larger than America’s ($21.4 trillion). At current exchange rates too, the gap between the two countries is narrowing: China’s 2019 nominal GDP is $14.2 trillion against America’s $21.5 trillion. At their current respective rates of economic growth (roughly 6% and 3%), China’s nominal GDP could overtake US GDP in less than 20 years.

Apart from the three events that could slow China’s ascent – trade, Taiwan and Hong Kong – several other pressure points are building up. China rarely cares about international opinion, but the media exposé of the horrific treatment of over one million Chinese Muslims kept in prison-like detention camps in Xinjiang is creating global outrage.

The sale of military hardware, including battle tanks and anti-aircraft missiles, by the US to Taiwan after a self-imposed, decades-long embargo has meanwhile enraged Beijing. Last week, the Chinese government demanded that the sale be cancelled. But instead of paying heed to Beijing, the US further infuriated the Chinese by granting Taiwan’s anti-China President Tsai Ing-wen a two-day stopover in New York and Denver during her current visit to the Caribbean.

China has vowed to integrate Taiwan into the mainland, using military force if necessary. The sale of US military weaponry to Taipei is seen by Beijing as a deliberate aggravation.

Equally galling to Beijing are the protests in Hong Kong. When the former British colony was handed back to China in 1997, Hong Kong’s economy was nearly 20% of China’s. Today it is a mere 3%. But Hong Kong’s value to Beijing goes beyond the size of its economy. It is home to over one hundred global banks and has a vibrant stock market. In future, it could attract Chinese companies to list there rather than on the New York Stock Exchange, giving China access to an alternative source of global finance at its doorstep.

As The Economist observed: “Hong Kong is China’s conduit. It accounted for nearly 60% of direct investment both into and out of China in 2012-16. It has a mighty share of offshore yuan-denominated payments. Western firms put money and headquarters there because it is seen as part of the Western system. Its currency is tied to the American dollar. It ranks third in the world as a financial centre; its banking assets are worth a whopping 851% of GDP.”

So how might the anger on Hong Kong’s streets against China’s totalitarian regime play out? In its report, The Economist noted: “For many global firms, Hong Kong is both a gateway to the Chinese market and central to the Asian continent – more than 1,300 of them have their regional headquarters there. If Hong Kong came to be seen as just another Chinese city, Hong Kongers would not be the only ones to suffer. The threat is real. Since he took over as China’s leader in 2012, Mr Xi Jinping has been making it clearer than ever that the legal system should be under the party’s thumb. China must ‘absolutely not follow the Western road of judicial independence,’ he said in a speech published in February.&nbsp;

In 2015, Mr Xi launched a campaign to silence independent lawyers and civil-rights activists. Hundreds of them have been harassed or detained by the police. The authorities on the mainland have even sent thugs to other jurisdictions to abduct people, including a publisher of gossipy books about the party, snatched from a car park in Hong Kong and a tycoon taken from the Four Seasons hotel in 2017. The message is plain. Xi not only cares little for the rule of law on the Chinese mainland. He scorns it elsewhere, too.”

A paranoid China has warned the US against sending any “misleading signals” to “ultra-radicals” in Hong Kong. While Hong Kong’s China-friendly chief executive Carrie Lam has declared that the much-reviled extradition legislation is now “dead”, Hong Kongers believe it will at some stage be revived.

As a Special Administrative Region (SAR) of China till 2047, Hong Kong has less than a generation to come to terms with a transition from a free-wheeling capitalist city to being part of Communist China.

It is not a prospect anyone in Hong Kong relishes. For Beijing though, Hong Kong is part of a larger global affliction that includes uncertainty over Taiwan’s future, the international outrage over Xinjiang’s Muslims, and America’s relentless trade assault.

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-china-s-moment-of-truth-2773069">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

 
&nbsp;

China has been rattled by three events. The first is the trade and technology dispute with the United States, which seems no nearer to resolution. The second is Washington’s decision to sell $2.

China has been rattled by three events. The first is the trade and technology dispute with the United States, which seems no nearer to resolution. The second is Washington’s decision to sell $2.20 billion (Rs 15,000 crore) worth of advanced military hardware to Taiwan that China regards as a part of the mainland. The third is the cascading series of violent protests in Hong Kong over China’s attempt to impose its authoritarian will on the thriving mercantile city that Britain handed back to China in 1997 under a 50-year agreement that guarantees its democratic freedoms. Each of these events has the potential to erode China’s global credibility as it seeks to replace the United States as the world’s preeminent economic superpower. The US overtook imperial Britain as the world’s largest economy in the 1890s. China’s 2019 GDP of $27.4 trillion by purchasing power parity (PPP) is already larger than America’s ($21.4 trillion). At current exchange rates too, the gap between the two countries is narrowing: China’s 2019 nominal GDP is $14.2 trillion against America’s $21.5 trillion. At their current respective rates of economic growth (roughly 6% and 3%), China’s nominal GDP could overtake US GDP in less than 20 years. Apart from the three events that could slow China’s ascent – trade, Taiwan and Hong Kong – several other pressure points are building up. China rarely cares about international opinion, but the media exposé of the horrific treatment of over one million Chinese Muslims kept in prison-like detention camps in Xinjiang is creating global outrage. The sale of military hardware, including battle tanks and anti-aircraft missiles, by the US to Taiwan after a self-imposed, decades-long embargo has meanwhile enraged Beijing. Last week, the Chinese government demanded that the sale be cancelled. But instead of paying heed to Beijing, the US further infuriated the Chinese by granting Taiwan’s anti-China President Tsai Ing-wen a two-day stopover in New York and Denver during her current visit to the Caribbean. China has vowed to integrate Taiwan into the mainland, using military force if necessary. The sale of US military weaponry to Taipei is seen by Beijing as a deliberate aggravation. Equally galling to Beijing are the protests in Hong Kong. When the former British colony was handed back to China in 1997, Hong Kong’s economy was nearly 20% of China’s. Today it is a mere 3%. But Hong Kong’s value to Beijing goes beyond the size of its economy. It is home to over one hundred global banks and has a vibrant stock market. In future, it could attract Chinese companies to list there rather than on the New York Stock Exchange, giving China access to an alternative source of global finance at its doorstep. As The Economist observed: “Hong Kong is China’s conduit. It accounted for nearly 60% of direct investment both into and out of China in 2012-16. It has a mighty share of offshore yuan-denominated payments. Western firms put money and headquarters there because it is seen as part of the Western system. Its currency is tied to the American dollar. It ranks third in the world as a financial centre; its banking assets are worth a whopping 851% of GDP.” So how might the anger on Hong Kong’s streets against China’s totalitarian regime play out? In its report, The Economist noted: “For many global firms, Hong Kong is both a gateway to the Chinese market and central to the Asian continent – more than 1,300 of them have their regional headquarters there. If Hong Kong came to be seen as just another Chinese city, Hong Kongers would not be the only ones to suffer. The threat is real. Since he took over as China’s leader in 2012, Mr Xi Jinping has been making it clearer than ever that the legal system should be under the party’s thumb. China must ‘absolutely not follow the Western road of judicial independence,’ he said in a speech published in February. In 2015, Mr Xi launched a campaign to silence independent lawyers and civil-rights activists. Hundreds of them have been harassed or detained by the police. The authorities on the mainland have even sent thugs to other jurisdictions to abduct people, including a publisher of gossipy books about the party, snatched from a car park in Hong Kong and a tycoon taken from the Four Seasons hotel in 2017. The message is plain. Xi not only cares little for the rule of law on the Chinese mainland. He scorns it elsewhere, too.” A paranoid China has warned the US against sending any “misleading signals” to “ultra-radicals” in Hong Kong. While Hong Kong’s China-friendly chief executive Carrie Lam has declared that the much-reviled extradition legislation is now “dead”, Hong Kongers believe it will at some stage be revived. As a Special Administrative Region (SAR) of China till 2047, Hong Kong has less than a generation to come to terms with a transition from a free-wheeling capitalist city to being part of Communist China. It is not a prospect anyone in Hong Kong relishes. For Beijing though, Hong Kong is part of a larger global affliction that includes uncertainty over Taiwan’s future, the international outrage over Xinjiang’s Muslims, and America’s relentless trade assault. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

China’s moment of truth: Trade, Taiwan and Hong Kong are rattling the dragon

As US and China continue talks on ways to end the trade war, President Trump in a tweet said today that <a href="https://www.wionews.com/world/after-trump-xi-g20-meeting-us-china-resume-talks-to-resolve-trade-war-234508">US tariffs have had a major effect</a> on companies wanting to leave China for "non-tariffed countries" with "thousands leaving" the country.

"We are receiving billions of dollars in tariffs from China, with possibly much more to come. These tariffs are paid for by China devaluing and pumping, not by the US taxpayer!" the US president said in a tweet.

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China’s 2nd Quarter growth is the slowest it has been in more than 27 years. The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1150717474624692224?ref_src=twsrc%5Etfw">July 15, 2019</a></blockquote>
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"Thousands of companies are leaving. This is why China wants to make a deal with the US and wishes it had not broken the original deal in the first place," Trump added.

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....with the U.S., and wishes it had not broken the original deal in the first place. In the meantime, we are receiving Billions of Dollars in Tariffs from China, with possibly much more to come. These Tariffs are paid for by China devaluing &amp; pumping, not by the U.S. taxpayer!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1150717475421663233?ref_src=twsrc%5Etfw">July 15, 2019</a></blockquote>
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At the G20 summit in Japan last month, Trump had vowed not to<a href="https://www.wionews.com/business-economy/slower-china-gross-domestic-product-growth-nudges-oil-prices-lower-236066"> impose new tariffs on China</a>. Trump had said the trade issue was "back on track" during the summit. The US president had said he was ready for "historic deal" with China. President Xi told Trump that "dialogue" was better than confrontation.

However, on Monday in a tweet, Trump said: "China’s second-quarter growth is the slowest it has been in more than 27 years. The United States tariffs are having a major effect on companies wanting to leave China for non-tariffed countries."

Trump's latest attack on China comes even as White House officials had informed that US officials were set for face-to-face trade talks in China. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to go to Beijing to resume talks which have seen little progress over larger issues.

Reports said Lighthizer and Mnuchin had spoken with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan over the phone, but details of the conversation were not available.

Trump had earlier accused China of reneging on its commitments, however, hopes were revived after Trump met President Xi in Osaka, Japan with both leaders agreeing to remain "fully engaged" on the trade issue. 
&nbsp;

As US and China continue talks on ways to end the trade war, President Trump in a tweet said today that US tariffs have had a major effect on companies wanting to leave China for "non-tariffed countries" with "thousands leaving" the country.

As US and China continue talks on ways to end the trade war, President Trump in a tweet said today that US tariffs have had a major effect on companies wanting to leave China for "non-tariffed countries" with "thousands leaving" the country. "We are receiving billions of dollars in tariffs from China, with possibly much more to come. These tariffs are paid for by China devaluing and pumping, not by the US taxpayer!" the US president said in a tweet. China’s 2nd Quarter growth is the slowest it has been in more than 27 years. The United States Tariffs are having a major effect on companies wanting to leave China for non-tariffed countries. Thousands of companies are leaving. This is why China wants to make a deal.... — Donald J. Trump (@realDonaldTrump) July 15, 2019 × "Thousands of companies are leaving. This is why China wants to make a deal with the US and wishes it had not broken the original deal in the first place," Trump added. ....with the U.S., and wishes it had not broken the original deal in the first place. In the meantime, we are receiving Billions of Dollars in Tariffs from China, with possibly much more to come. These Tariffs are paid for by China devaluing & pumping, not by the U.S. taxpayer! — Donald J. Trump (@realDonaldTrump) July 15, 2019 × At the G20 summit in Japan last month, Trump had vowed not to impose new tariffs on China. Trump had said the trade issue was "back on track" during the summit. The US president had said he was ready for "historic deal" with China. President Xi told Trump that "dialogue" was better than confrontation. However, on Monday in a tweet, Trump said: "China’s second-quarter growth is the slowest it has been in more than 27 years. The United States tariffs are having a major effect on companies wanting to leave China for non-tariffed countries." Trump's latest attack on China comes even as White House officials had informed that US officials were set for face-to-face trade talks in China. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to go to Beijing to resume talks which have seen little progress over larger issues. Reports said Lighthizer and Mnuchin had spoken with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan over the phone, but details of the conversation were not available. Trump had earlier accused China of reneging on its commitments, however, hopes were revived after Trump met President Xi in Osaka, Japan with both leaders agreeing to remain "fully engaged" on the trade issue.

Thousands of companies leaving China, that is why they want to make a deal: Trump

U.S trade representative reaches Delhi for talks. Source said U.S seeks to resolve trade issues with India. U.S is India's largest trading partner, recently U.S ended India's preferential status. Watch this video to know more.

Sources: U.S. seeks to resolve trade issues with India

U.S trade representative reach Delhi for talks. Source said U.S seeks to resolve trade issues with India. U.S is India's largest trading partner. U.S ended India's preferential status, India retaliated. watch this video to know more.

Trump Targets India, Hurts Own Farmers

How The Trade War Could Lead To A Shortage Of Bible

Gravitas: U.S.-China trade war's latest victim: The Bible

<a href="https://www.wionews.com/world/russia-agrees-with-saudi-arabia-to-extend-opec-and-oil-output-deal-231649">OPEC</a> on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.

The drop in demand for OPEC crude highlights the sustained boost that OPEC's policy to support prices by supply cuts is giving to US shale and other rival supply. This potentially gives US President Donald Trump more room to keep up sanctions on OPEC members Iran and <a href="https://www.wionews.com/opinions/indigenous-people-are-forgotten-victims-of-the-ongoing-crisis-in-venezuela-215018">Venezuela</a>.

Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year.

"US tight crude production is anticipated to continue to grow as new pipelines will allow more Permian crude to flow to the US Gulf Coast export hub," OPEC said, using another term for shale oil.

OPEC in the report also forecast that world oil demand would rise at the same pace as this year and that the world economy would expand at this year's pace, despite slower growth in the United States and China.

"The 2020 forecast assumes that no further downside risks materialize, particularly that trade-related issues do not escalate further," OPEC said of the economic outlook.

"Brexit poses an additional risk, as does a continuation in the current slowdown in manufacturing activity."

OPEC, Russia and other producers have since Jan. 1 implemented a deal to cut output by 1.2 million bpd. The alliance, known as OPEC+, last week renewed the pact until March 2020 to avoid a build-up of inventories that could hit prices.

Oil pared earlier gains after the report was released, although prices were still trading above $67 a barrel after three Iranian vessels tried to block a British ship in the Strait of Hormuz oil chokepoint.

Despite the supply cut, oil has tumbled from April's 2019 peak above $75, pressured by concerns over the US-China trade dispute and an economic slowdown.

OPEC also oil inventories in developed economies rose in May, suggesting a trend that could raise concern over a possible oil glut.

Stocks in May exceeded the five-year average - a yardstick OPEC watches closely - by 25 million barrels.

Output Drop

OPEC said its oil output in June fell by 68,000 bpd to 29.83 million bpd as US sanctions on Iran boosted the impact of the supply pact.

According to figures OPEC collects from secondary sources, supply from Iran posted the biggest decline, by 142,000 bpd, as Washington tightened the screws on Iranian exports.

Top exporter Saudi Arabia increased output by 126,000 bpd to 9.81 million bpd in June but continued to voluntarily pump less than the supply pact allows it to in order to bolster the market. Nigeria, seeking a higher OPEC quota, posted the group's largest boost in output.

With 2020 demand for OPEC crude expected to average 29.27 million bpd, OPEC's report suggests there will be a 2020 supply surplus of over 500,000 bpd if OPEC keeps pumping at June's rate and other things remain equal.

OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.

OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies. The drop in demand for OPEC crude highlights the sustained boost that OPEC's policy to support prices by supply cuts is giving to US shale and other rival supply. This potentially gives US President Donald Trump more room to keep up sanctions on OPEC members Iran and Venezuela. Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year. "US tight crude production is anticipated to continue to grow as new pipelines will allow more Permian crude to flow to the US Gulf Coast export hub," OPEC said, using another term for shale oil. OPEC in the report also forecast that world oil demand would rise at the same pace as this year and that the world economy would expand at this year's pace, despite slower growth in the United States and China. "The 2020 forecast assumes that no further downside risks materialize, particularly that trade-related issues do not escalate further," OPEC said of the economic outlook. "Brexit poses an additional risk, as does a continuation in the current slowdown in manufacturing activity." OPEC, Russia and other producers have since Jan. 1 implemented a deal to cut output by 1.2 million bpd. The alliance, known as OPEC+, last week renewed the pact until March 2020 to avoid a build-up of inventories that could hit prices. Oil pared earlier gains after the report was released, although prices were still trading above $67 a barrel after three Iranian vessels tried to block a British ship in the Strait of Hormuz oil chokepoint. Despite the supply cut, oil has tumbled from April's 2019 peak above $75, pressured by concerns over the US-China trade dispute and an economic slowdown. OPEC also oil inventories in developed economies rose in May, suggesting a trend that could raise concern over a possible oil glut. Stocks in May exceeded the five-year average - a yardstick OPEC watches closely - by 25 million barrels. Output Drop OPEC said its oil output in June fell by 68,000 bpd to 29.83 million bpd as US sanctions on Iran boosted the impact of the supply pact. According to figures OPEC collects from secondary sources, supply from Iran posted the biggest decline, by 142,000 bpd, as Washington tightened the screws on Iranian exports. Top exporter Saudi Arabia increased output by 126,000 bpd to 9.81 million bpd in June but continued to voluntarily pump less than the supply pact allows it to in order to bolster the market. Nigeria, seeking a higher OPEC quota, posted the group's largest boost in output. With 2020 demand for OPEC crude expected to average 29.27 million bpd, OPEC's report suggests there will be a 2020 supply surplus of over 500,000 bpd if OPEC keeps pumping at June's rate and other things remain equal.

OPEC sees lower 2020 demand for its oil, points to surplus

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims rising to 223,000 in the latest week.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.

The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling.&nbsp;

Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data.

There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade.

<a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">Federal Reserve Chairman Jerome Powell</a> told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story)

Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades.

&nbsp;Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch.

Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy.&nbsp;

The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects.

Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March.&nbsp;

The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy. Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast claims rising to 223,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week. The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling. Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data. There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade. Federal Reserve Chairman Jerome Powell told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story) Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades. Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch. Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy. The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects. Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March. The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

United States weekly jobless claims fall to three-month low

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks. Tariffs, which began to be introduced by both sides on an array of imports in 2018, will not be raised further.

But a number of tariffs remain and trade relations are still far from normal between the world’s two largest economies. This may not be a cold war. But it is a great power rivalry focusing on technological supremacy and which side has the best development model.

China’s economy is slowing down and recent tariffs from the US on its exports have not helped. China’s growth rate declined from 6.6 per cent&nbsp;in 2018 to 6.4 per cent in the first quarter of 2019. But in the long term, the pressure exerted by Trump’s administration will strengthen China. It will help China speed up its efforts to restructure its economy, focus more on innovation, and also boost the country’s national pride.

Technological advancements are central to empire building and the rise of new powers, with steam power and then electronic technologies driving previous British and American empires. The fourth industrial revolution will shift international competition away from labour, territory, nuclear arms, and soft power to new technology including robotics, artificial intelligence (AI), and wireless services.

Wake up call

Until recently, US policymakers operated under the assumption that the US was the world’s technological superpower and Silicon Valley was the globe’s innovation hotbed. China was regarded as a copycat that builds clumsy clones of American technologies or uses its big state-owned enterprises to purchase innovative US companies and absorb their intellectual property and know-how.

But when it comes to 5G – the next generation of superfast internet technology – the US has lagged behind. No American company has comparable wireless equipment to Huawei. This spurred Trump to wage war on the Chinese tech company. First he declared a national emergency, banning sales and the use of telecoms equipment deemed to pose “unacceptable risks”. Then he lobbied allies to do the same.

US-based companies followed suit. First, Google removed Huawei from its Android service, then the Wi-Fi Alliance, Bluetooth, and others followed suit.

Huawei’s 5G capabilities and the fallout from them can be seen as China’s Sputnik moment. In the same way the Soviet Union was the first to launch a satellite into space, creating the appearance that the Soviets were winning the engineering challenge of the day, China is outpacing other countries in the development of 5G today. China realises the dangers of technological dependence, economic entanglement, and scientific reliance on the US.

Innovation revolution

Huawei is a product of the Chinese government’s industrial policy strategy. The vision to move up the economic value chain from a low-end manufacturer to a global innovation leader led to the launch of its Made In China 2025 initiative and an Artificial Intelligence Development Plan to channel resources into strategic sectors such as computing, AI, robotics, and aerospace.

China aims to achieve an AI self-sufficiency manufacturing rate of 80 per cent, minimising its dependence on other countries for the complex parts needed in this tech. It also aims to become a leading technology hub in AI by 2030. This is bearing fruit, as in 2017, 48 per cent of global AI funding was Chinese compared to 38% being American. Chinese AI company iFlyTek often beats Facebook, Alphabet’s DeepMind, and IBM’s Watson in competitions to process natural speech, even in its “second language” English.

China is now the world’s biggest producer of scientific research papers and Semantic Scholar, the academic search engine for scientific articles, suggests Chinese scholars have surpassed their US counterparts in producing AI papers.

So the Huawei ban and tariffs on Chinese goods will not slow China – they will stimulate its new innovation system and boost scientific research aimed at becoming more independent.

Domestic boost 
 
Another consequence will be an acceleration of China’s attempt to rebalance its economy away from external demand and investment towards domestic consumption. This started in 2008 with the global financial crisis and has become increasingly necessary as China’s middle class develops. Since then large-scale government-led infrastructure investments, measures to increase household income, reductions of income tax, and improvements to social welfare systems have helped grow domestic consumption.

When Trump first announced tariffs in 2018, China’s domestic consumption was responsible for 76.2 per cent of its GDP growth, and the Chinese stock market absorbed the impact and bounced back after an initial sharp decline. Since then, the Chinese government has introduced new policies to boost domestic consumption further, including more tax cuts, improved childcare, and elderly care initiatives and incentives. So the trade war has helped China’s efforts to redistribute wealth and restructure its economy.

The trade war has also rallied the Chinese public around its government. US treatment of Chinese companies has been perceived as bullying and people have compared it to the way that the British Empire forced unfair trade practices on China in the 19th century. This topic is incredibly emotive in Chinese society and has boosted domestic support for the government.

The Chinese word for crisis is composed of two characters – one for danger and the other for opportunity. The country’s ability to capitalise on the current challenge from the US will strengthen it for years to come. 
 
(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/us-china-trade-war-is-making-china-stronger-118852">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

 
&nbsp;

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks.

The United States and China have reached a truce in their escalating trade war. Following a meeting between US president, Donald Trump and his Chinese counterpart, Xi Jinping at the G20, the two leaders agreed to renew talks. Tariffs, which began to be introduced by both sides on an array of imports in 2018, will not be raised further. But a number of tariffs remain and trade relations are still far from normal between the world’s two largest economies. This may not be a cold war. But it is a great power rivalry focusing on technological supremacy and which side has the best development model. China’s economy is slowing down and recent tariffs from the US on its exports have not helped. China’s growth rate declined from 6.6 per cent in 2018 to 6.4 per cent in the first quarter of 2019. But in the long term, the pressure exerted by Trump’s administration will strengthen China. It will help China speed up its efforts to restructure its economy, focus more on innovation, and also boost the country’s national pride. Technological advancements are central to empire building and the rise of new powers, with steam power and then electronic technologies driving previous British and American empires. The fourth industrial revolution will shift international competition away from labour, territory, nuclear arms, and soft power to new technology including robotics, artificial intelligence (AI), and wireless services. Wake up call Until recently, US policymakers operated under the assumption that the US was the world’s technological superpower and Silicon Valley was the globe’s innovation hotbed. China was regarded as a copycat that builds clumsy clones of American technologies or uses its big state-owned enterprises to purchase innovative US companies and absorb their intellectual property and know-how. But when it comes to 5G – the next generation of superfast internet technology – the US has lagged behind. No American company has comparable wireless equipment to Huawei. This spurred Trump to wage war on the Chinese tech company. First he declared a national emergency, banning sales and the use of telecoms equipment deemed to pose “unacceptable risks”. Then he lobbied allies to do the same. US-based companies followed suit. First, Google removed Huawei from its Android service, then the Wi-Fi Alliance, Bluetooth, and others followed suit. Huawei’s 5G capabilities and the fallout from them can be seen as China’s Sputnik moment. In the same way the Soviet Union was the first to launch a satellite into space, creating the appearance that the Soviets were winning the engineering challenge of the day, China is outpacing other countries in the development of 5G today. China realises the dangers of technological dependence, economic entanglement, and scientific reliance on the US. Innovation revolution Huawei is a product of the Chinese government’s industrial policy strategy. The vision to move up the economic value chain from a low-end manufacturer to a global innovation leader led to the launch of its Made In China 2025 initiative and an Artificial Intelligence Development Plan to channel resources into strategic sectors such as computing, AI, robotics, and aerospace. China aims to achieve an AI self-sufficiency manufacturing rate of 80 per cent, minimising its dependence on other countries for the complex parts needed in this tech. It also aims to become a leading technology hub in AI by 2030. This is bearing fruit, as in 2017, 48 per cent of global AI funding was Chinese compared to 38% being American. Chinese AI company iFlyTek often beats Facebook, Alphabet’s DeepMind, and IBM’s Watson in competitions to process natural speech, even in its “second language” English. China is now the world’s biggest producer of scientific research papers and Semantic Scholar, the academic search engine for scientific articles, suggests Chinese scholars have surpassed their US counterparts in producing AI papers. So the Huawei ban and tariffs on Chinese goods will not slow China – they will stimulate its new innovation system and boost scientific research aimed at becoming more independent. Domestic boost Another consequence will be an acceleration of China’s attempt to rebalance its economy away from external demand and investment towards domestic consumption. This started in 2008 with the global financial crisis and has become increasingly necessary as China’s middle class develops. Since then large-scale government-led infrastructure investments, measures to increase household income, reductions of income tax, and improvements to social welfare systems have helped grow domestic consumption. When Trump first announced tariffs in 2018, China’s domestic consumption was responsible for 76.2 per cent of its GDP growth, and the Chinese stock market absorbed the impact and bounced back after an initial sharp decline. Since then, the Chinese government has introduced new policies to boost domestic consumption further, including more tax cuts, improved childcare, and elderly care initiatives and incentives. So the trade war has helped China’s efforts to redistribute wealth and restructure its economy. The trade war has also rallied the Chinese public around its government. US treatment of Chinese companies has been perceived as bullying and people have compared it to the way that the British Empire forced unfair trade practices on China in the 19th century. This topic is incredibly emotive in Chinese society and has boosted domestic support for the government. The Chinese word for crisis is composed of two characters – one for danger and the other for opportunity. The country’s ability to capitalise on the current challenge from the US will strengthen it for years to come. (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

US-China trade war is making China stronger

<a href="https://www.wionews.com/business-economy/china-continues-to-be-key-driver-of-global-economy-experts-205273">China's economic growth</a> is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

The median forecast was unchanged from the last poll in April.

But a stream of downbeat data in recent months and higher <a href="https://www.wionews.com/world/china-says-us-tariffs-must-be-lifted-to-reach-a-deal-to-end-trade-war-232996">US tariffs</a> have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses.

Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China</a> will post its second-quarter gross domestic product (GDP) on July 15.

Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll.

Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half.

But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures.

"We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said.

So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges.

But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens.

The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years.

It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017.

Growth next year will likely cool further to 6.0 per cent, the poll showed.

Trade Uncertainty&nbsp;

Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession.

US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track.

But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks.

"Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added.

Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing.

"We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018."

The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018.

More Measures Expected

Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year.

But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns.

Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month.

The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower.

Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter.

Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020.

The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent.

Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States. The median forecast was unchanged from the last poll in April. But a stream of downbeat data in recent months and higher US tariffs have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses. Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. China will post its second-quarter gross domestic product (GDP) on July 15. Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll. Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half. But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures. "We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said. So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges. But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens. The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years. It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017. Growth next year will likely cool further to 6.0 per cent, the poll showed. Trade Uncertainty Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies. But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession. US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track. But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks. "Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added. Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing. "We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018." The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018. More Measures Expected Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year. But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns. Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month. The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower. Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter. Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020. The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent. Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's 2019 growth seen slowing to 6.2 per cent as trade war weighs: Report

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