India imposes tariffs on Almonds , 27 other U.S Products. California has more than 7,000 almond farmers. Farm products redirected to India due to China tariffs. California's almonds export to India valued at 650 USD. Watch this video to know more.

Trade war put almonds' farmers of U.S at risk

China and the rest of the world must co-exist, <a href="https://www.wionews.com/south-asia/china-will-always-stand-by-pakistans-core-interests-chinese-vice-president-221991">Chinese Vice President Wang Qishan</a> said on Monday, in an indirect jab at the <a href="https://www.wionews.com/world/united-states-congress-expands-probe-of-white-house-personal-email-use-232215">United States</a> with which Beijing is currently trying to resolve a bitter trade war.

"China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University.

Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability.

The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied.

Both sides have levelled increasingly severe tariffs on each other's imports.

China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns.

Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up.

The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption.

"Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said.

"Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy.

Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies.

The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May.

Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished.

The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own.

Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion.

"If there is no peaceful, stable international environment, there will be no development to talk of."

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war.

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war. "China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University. Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability. The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied. Both sides have levelled increasingly severe tariffs on each other's imports. China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns. Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up. The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption. "Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said. "Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy. Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies. The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May. Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished. The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own. Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion. "If there is no peaceful, stable international environment, there will be no development to talk of."

In jab at US, China's vice president Wang Qishan says world cannot shut China out

By Bill Durodie

On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time.

Instead, it is likely to descend either into directly confrontational rhetoric or, alternatively, empty promises and vague platitudes that avoid its mission to be the “premier forum for international economic cooperation”. The focus could end up being on more peripheral matters such as climate change, counter-terrorism, health and migration that are perceived of as being less contentious but should not be fundamental concerns of the G20.

The G20 is no stranger to crisis. It emerged from the 1997-98 Asian Financial Crisis that led G7 finance ministers (representing almost half of world GDP) to establish a wider group in order to engage with the major emerging economies. Then, in the wake of the 2007-08 global financial crisis, the group was further elevated to become a forum for heads of state.

In 2019, it is the continuing dispute between the US and China over trade that appears to loom largest. But this ought not be the main focus of the G20 either. As is well understood, trade wars are symptoms of underlying economic problems rather than their cause. The main focus ought to be on addressing those.

Trade and tariffs are not the fundamental drivers of growth and prosperity. Rather, these derive from domestic productivity levels in the making of goods and services that are, in their turn, driven by investment. To trade effectively, the key is to have something worth selling in the first place.

Tariffs, regulation, barriers

Unfortunately, the protectionist measures that had hastened the advent of World War II, and that were dismantled subsequently through the establishment of the GATT/WTO, led instead to a growing proliferation of non-tariff or technical barriers to trade. Rather than invest in new industries, older ones were sustained artificially behind a chaff of regulatory standards, intellectual property laws, state subsidies and public procurement policies.

Accordingly, assertions that we have been living through a time marked by a so-called “rules-based international trading system” fall very wide of the mark. All the evidence points to systematic attempts by the key players – and the United States in particular – to subvert any supposed “liberal world order”, both economically and militarily.

Now it may be, of course, that President Trump – who is certainly not the first US, or other, world leader to engage in such embargoes against China – understands full well that to compete internationally as a successful exporter it is the ability to produce efficiently at home that matters more than trade deals. Some of his pronouncements have reflected as much, looking to put pressure on manufacturers, such as Harley-Davidson and Nike, to bring their production back to its origins.

But, irrespective, the adverse effects of this approach are evident for all to see. Many American firms have warned the US Department of Commerce that such measures hurt both businesses and consumers alike. The latter invariably bear the brunt of any related price increases.

The IMF has cut its world economic growth forecast in accordance. And anyway, many enterprises will simply relocate elsewhere, such as to Vietnam, which is not currently on the receiving end of such additional duties.

A risky game

The deeper consequences, though, will take more time to become manifest. These include growing differences among the Western powers over how to handle the economic rise of the East.

This was seen recently, through the US stance towards its partners not using the Chinese firm Huawei to develop critical 5G infrastructure, despite its being the leading global player in the field. Such actions could come to damage relations with key allies, such as the UK and Germany.

In this regard, the US is playing a very risky game. With its relations veering towards a potential conflict with Iran, as well as its ongoing disputes with Russia and China, the US may yet come to rue antagonising its friends as well.

Or, at the very least, it may regret making them have to choose between their relations with the US and China. Only this week, the UK chancellor, Phillip Hammond launched the new Shanghai-London Stock Connect that looks set to deepen financial relations by facilitating investment between them.

This, and China’s recent decision not to pursue WTO market economy status, may also point to a growing maturity on its part in relation to such matters. Certainly, its most successful strategy in the past was always to keep a low profile on the international stage and avoid confrontation in foreign affairs, while focusing more on its domestic concerns.

Historically, it has often been extraneous circumstances that have accelerated change in world affairs more than any conscious push. The two powers that dominated each of the last two preceding centuries – the US and UK – did so as much through the decline and imperial overreach of their predecessors as through their own efforts. That, and its underlying crisis of innovation and investment, are what the US leadership would do well to reflect upon most in Osaka.

(Bill Durodie is Professor and Chair of International Relations, University of Bath)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/g20-us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-119359">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;

By Bill Durodie On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time.

By Bill Durodie On June 28 and 29, the G20 summit will convene for the 14th time in Osaka, Japan. This gathering of leaders from the world’s leading economies, including the EU, plus invited guests and international organisations, ought to offer an important moment for mature reflection and collective coordination regarding the future needs of the world economy at a difficult time. Instead, it is likely to descend either into directly confrontational rhetoric or, alternatively, empty promises and vague platitudes that avoid its mission to be the “premier forum for international economic cooperation”. The focus could end up being on more peripheral matters such as climate change, counter-terrorism, health and migration that are perceived of as being less contentious but should not be fundamental concerns of the G20. The G20 is no stranger to crisis. It emerged from the 1997-98 Asian Financial Crisis that led G7 finance ministers (representing almost half of world GDP) to establish a wider group in order to engage with the major emerging economies. Then, in the wake of the 2007-08 global financial crisis, the group was further elevated to become a forum for heads of state. In 2019, it is the continuing dispute between the US and China over trade that appears to loom largest. But this ought not be the main focus of the G20 either. As is well understood, trade wars are symptoms of underlying economic problems rather than their cause. The main focus ought to be on addressing those. Trade and tariffs are not the fundamental drivers of growth and prosperity. Rather, these derive from domestic productivity levels in the making of goods and services that are, in their turn, driven by investment. To trade effectively, the key is to have something worth selling in the first place. Tariffs, regulation, barriers Unfortunately, the protectionist measures that had hastened the advent of World War II, and that were dismantled subsequently through the establishment of the GATT/WTO, led instead to a growing proliferation of non-tariff or technical barriers to trade. Rather than invest in new industries, older ones were sustained artificially behind a chaff of regulatory standards, intellectual property laws, state subsidies and public procurement policies. Accordingly, assertions that we have been living through a time marked by a so-called “rules-based international trading system” fall very wide of the mark. All the evidence points to systematic attempts by the key players – and the United States in particular – to subvert any supposed “liberal world order”, both economically and militarily. Now it may be, of course, that President Trump – who is certainly not the first US, or other, world leader to engage in such embargoes against China – understands full well that to compete internationally as a successful exporter it is the ability to produce efficiently at home that matters more than trade deals. Some of his pronouncements have reflected as much, looking to put pressure on manufacturers, such as Harley-Davidson and Nike, to bring their production back to its origins. But, irrespective, the adverse effects of this approach are evident for all to see. Many American firms have warned the US Department of Commerce that such measures hurt both businesses and consumers alike. The latter invariably bear the brunt of any related price increases. The IMF has cut its world economic growth forecast in accordance. And anyway, many enterprises will simply relocate elsewhere, such as to Vietnam, which is not currently on the receiving end of such additional duties. A risky game The deeper consequences, though, will take more time to become manifest. These include growing differences among the Western powers over how to handle the economic rise of the East. This was seen recently, through the US stance towards its partners not using the Chinese firm Huawei to develop critical 5G infrastructure, despite its being the leading global player in the field. Such actions could come to damage relations with key allies, such as the UK and Germany. In this regard, the US is playing a very risky game. With its relations veering towards a potential conflict with Iran, as well as its ongoing disputes with Russia and China, the US may yet come to rue antagonising its friends as well. Or, at the very least, it may regret making them have to choose between their relations with the US and China. Only this week, the UK chancellor, Phillip Hammond launched the new Shanghai-London Stock Connect that looks set to deepen financial relations by facilitating investment between them. This, and China’s recent decision not to pursue WTO market economy status, may also point to a growing maturity on its part in relation to such matters. Certainly, its most successful strategy in the past was always to keep a low profile on the international stage and avoid confrontation in foreign affairs, while focusing more on its domestic concerns. Historically, it has often been extraneous circumstances that have accelerated change in world affairs more than any conscious push. The two powers that dominated each of the last two preceding centuries – the US and UK – did so as much through the decline and imperial overreach of their predecessors as through their own efforts. That, and its underlying crisis of innovation and investment, are what the US leadership would do well to reflect upon most in Osaka. (Bill Durodie is Professor and Chair of International Relations, University of Bath) (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 points to the real crisis that global leaders must confront at G20 Summit

President Donald Trump said Wednesday that China needs a trade deal with the United States because its economy is so weakened by US tariffs.

"China's economy is going down the tubes -- they want to make a deal," Trump said in an interview with Fox Business News hours before he took off for a G20 summit in Japan, where he will meet with President Xi Jinping.

Also read-<a href="https://www.wionews.com/world/us-in-a-very-strong-position-no-boots-on-the-ground-against-iran-trump-230652">US in a very strong position, no boots on the ground against Iran: Trump</a>

Trump has hit $200 billion of Chinese imports with levies and has threatened to impose them on an additional $300 billion if Beijing does not agree to US demands for protection of intellectual property and other reforms to a trading system that Trump says gives China huge unfair advantages.

The two sides said they were close to a deal before talks broke down in May.

Trump noted that some companies are leaving China for Vietnam to avoid the US import tariffs, but he complained that Vietnam was "even worse than China" when it comes to unfair trading practices.

Vietnam is the "single worst abuser," he said.

President Donald Trump said Wednesday that China needs a trade deal with the United States because its economy is so weakened by US tariffs. "China's economy is going down the tubes -- they want to make a deal," Trump said in an interview with Fox Business News hours before he took off for a G20 summit in Japan, where he will meet with President Xi Jinping.

President Donald Trump said Wednesday that China needs a trade deal with the United States because its economy is so weakened by US tariffs. "China's economy is going down the tubes -- they want to make a deal," Trump said in an interview with Fox Business News hours before he took off for a G20 summit in Japan, where he will meet with President Xi Jinping. Also read-US in a very strong position, no boots on the ground against Iran: Trump Trump has hit $200 billion of Chinese imports with levies and has threatened to impose them on an additional $300 billion if Beijing does not agree to US demands for protection of intellectual property and other reforms to a trading system that Trump says gives China huge unfair advantages. The two sides said they were close to a deal before talks broke down in May. Trump noted that some companies are leaving China for Vietnam to avoid the US import tariffs, but he complained that Vietnam was "even worse than China" when it comes to unfair trading practices. Vietnam is the "single worst abuser," he said.

Trump says Vietnam worse than China on trade

As tensions continued to mount between <a href="https://www.wionews.com/world/iran-will-speed-up-enriching-of-uranium-after-deadline-to-europe-ends-on-thursday-irib-230564">US and Iran in the aftermath</a> of the downing of the US drone, President Trump in an interview to a US television network said there would be "no boots on the ground if US attacks".

"I hope we don't but we're in a very strong position if something should happen," adding,"I'm not talking boots on the ground ... I'm just saying if something would happen, it wouldn't last very long."

On the US-China trade war, the US president said China was "going down the tubes" and wanted a trade deal.

President Xi and Trump are due to meet in the<a href="https://www.wionews.com/world/us-hopes-to-re-launch-china-trade-talks-will-not-accept-conditions-on-tariffs-230453"> G20 Summit in Osaka</a>, Japan shortly with several experts hoping for a deal, although there has been no word on it from the White House.

<div class="videoWrapper trancodeVideo"><iframe src="https://www.wionews.com/videos/russia-backs-iran-on-us-sanctions-230465/embed" width="560" height="350" style="width:100%;max-width:560px;" class="includeVideo" frameborder="0" autoplay=1 allowfullscreen></iframe></div>

"China wants a trade deal with the United States because its economy is weakening," the US president said.

However, on the trade front, the US president asserted that "Vietnam was worse than China on trade".

Vietnam was the "single worst abuser" on trade with the United States, worse even than China, he said.

"A lot of companies are moving to Vietnam, but Vietnam takes advantage of us even worse than China," he said.

"It's almost the single worst abuser of everybody," he added.

Trump said the European Union was out of line bringing lawsuits against US technology companies like Facebook and Google, saying legal action against those firms should be the purview of the United States.

She hates the United States perhaps worse than any person I've ever met," Trump said during the interview in an apparent reference to EU competition commissioner Margrethe Vestager.

"What she does to our country. She's suing all our companies. We should be suing Google and Facebook, and all that," he said. "They're suing Apple. They're suing everybody." 
&nbsp;

As tensions continued to mount between US and Iran in the aftermath of the downing of the US drone, President Trump in an interview to a US television network said there would be "no boots on the ground if US attacks".

As tensions continued to mount between US and Iran in the aftermath of the downing of the US drone, President Trump in an interview to a US television network said there would be "no boots on the ground if US attacks". "I hope we don't but we're in a very strong position if something should happen," adding,"I'm not talking boots on the ground ... I'm just saying if something would happen, it wouldn't last very long." On the US-China trade war, the US president said China was "going down the tubes" and wanted a trade deal. President Xi and Trump are due to meet in the G20 Summit in Osaka, Japan shortly with several experts hoping for a deal, although there has been no word on it from the White House. "China wants a trade deal with the United States because its economy is weakening," the US president said. However, on the trade front, the US president asserted that "Vietnam was worse than China on trade". Vietnam was the "single worst abuser" on trade with the United States, worse even than China, he said. "A lot of companies are moving to Vietnam, but Vietnam takes advantage of us even worse than China," he said. "It's almost the single worst abuser of everybody," he added. Trump said the European Union was out of line bringing lawsuits against US technology companies like Facebook and Google, saying legal action against those firms should be the purview of the United States. She hates the United States perhaps worse than any person I've ever met," Trump said during the interview in an apparent reference to EU competition commissioner Margrethe Vestager. "What she does to our country. She's suing all our companies. We should be suing Google and Facebook, and all that," he said. "They're suing Apple. They're suing everybody."

US in a very strong position, no boots on the ground against Iran: Trump

Frequent exchanges between China and the United States in history shows that the so-called China-U.S. "decoupling" does not stand up to scrutiny, according to a commentary published Monday on the China Radio International (CRI) website under the China Media Group (CMG). Looking back on the long history in China-US trade relations, the commentary warned that a scenario of China-US decoupling could be detrimental to the world economy since the two sides have become closely entwined through years of growing their relationship and years of cooperation.

History shows China-US 'decoupling' would be folly

Commerce and Industry Minister Piyush Goyal on Friday said India is well placed to handle the "crossfire" resulting from global trade war on the strength of the country's economy.

At a time when the world is witnessing trade wars across nations, India too will be impacted.

"Obviously, in a situation when the world is seeing trade wars across nations, across continents, India will come in the crossfire. But then it's a crossfire which we can handle," the minister said during Question Hour in Rajya Sabha.

The global trade war has been triggered by the US after it raised duties on imports, including aluminium and steel. Other countries, including India too retaliated by raising import duty on goods from the US.

The minister said irrespective of the world trade situation, India is looking at ways to "encash' opportunities to further exports. 
 
The minister further said India is competent to handle the international trade situation.

Goyal also dismissed contentions that India's exports have been hit badly after the US has terminated its Preferential Trade Treatment or GSP (Generalised System of Preferences) to India from June 5 this year.

"I would like to submit that the total impact of GSP is under $250-269 million in a year and for a country of size and strength of India, I can assure members (of the House) that it will not have any significant impact. India can handle the situation," he said when asked if India was discussing the issue with the US.

GSP, the minister said was unilateral, non-obligatory concession given by the US to India as a developing country.

"Some of the demands that were raised on India were such that India could not yield. I think national sovereignty and national interest is paramount," he said when asked if the government would initiate further negotiations in this regard with the US.

He further said India will continue to negotiate with all countries, including the US, but it will not be at the cost of sovereignty. 
 
On the country's exports, Goyal said it increased significantly during the last fiscal and in the current year also, the outward shipments are showing increasing trends.

He further said India has fortified its foreign exchange reserves and the government is taking pro-active measures to promote exports.

On a question related to the forthcoming visit of US Secretary of State Mike Pompeo to India, Goyal said there will be discussions on several issues.

Pompeo will be visiting India from June 25-27.&nbsp;

Commerce and Industry Minister Piyush Goyal on Friday said India is well placed to handle the "crossfire" resulting from global trade war on the strength of the country's economy.

Commerce and Industry Minister Piyush Goyal on Friday said India is well placed to handle the "crossfire" resulting from global trade war on the strength of the country's economy. At a time when the world is witnessing trade wars across nations, India too will be impacted. "Obviously, in a situation when the world is seeing trade wars across nations, across continents, India will come in the crossfire. But then it's a crossfire which we can handle," the minister said during Question Hour in Rajya Sabha. The global trade war has been triggered by the US after it raised duties on imports, including aluminium and steel. Other countries, including India too retaliated by raising import duty on goods from the US. The minister said irrespective of the world trade situation, India is looking at ways to "encash' opportunities to further exports. The minister further said India is competent to handle the international trade situation. Goyal also dismissed contentions that India's exports have been hit badly after the US has terminated its Preferential Trade Treatment or GSP (Generalised System of Preferences) to India from June 5 this year. "I would like to submit that the total impact of GSP is under $250-269 million in a year and for a country of size and strength of India, I can assure members (of the House) that it will not have any significant impact. India can handle the situation," he said when asked if India was discussing the issue with the US. GSP, the minister said was unilateral, non-obligatory concession given by the US to India as a developing country. "Some of the demands that were raised on India were such that India could not yield. I think national sovereignty and national interest is paramount," he said when asked if the government would initiate further negotiations in this regard with the US. He further said India will continue to negotiate with all countries, including the US, but it will not be at the cost of sovereignty. On the country's exports, Goyal said it increased significantly during the last fiscal and in the current year also, the outward shipments are showing increasing trends. He further said India has fortified its foreign exchange reserves and the government is taking pro-active measures to promote exports. On a question related to the forthcoming visit of US Secretary of State Mike Pompeo to India, Goyal said there will be discussions on several issues. Pompeo will be visiting India from June 25-27.

India well placed to deal with global trade crossfire, says Piyush Goyal

United States President Donald Trump is obsessed with trade tariffs. He misses no opportunity to upbraid China, India, Mexico and even the European Union (EU) on the high tariffs they impose on US products. &nbsp;

He is especially incensed by India’s 50 per cent import duty on Harley Davidson motorcycles, which have an infinitesimal market share in India. Yet for Trump, it is a symbol of how other countries “rip off America”, as he said in a recent television interview. Trump has used tariff threats to bully Mexico into sending 6,000 Mexican troops to stop refugees fleeing Central American countries like El Salvador and Honduras before they reach the US-Mexico border. &nbsp;

Trump has, meanwhile, held out a threat to slap 25 per cent tariffs on Chinese exports to the US valued at $300 billion in addition to the tariffs already in place on $250 billion worth of Chinese exports. Trump is expected to meet Chinese President Xi Jinping at the G20 Summit in Osaka, Japan, on June 28-29 to thrash out the issues in the escalating US-China trade war. &nbsp;

Where does India fit in? India-US trade is a fraction of China-US trade. China’s trade surplus with the US that sends Trump into near-delirium was $419.2 billion in 2018. India’s trade surplus with the US in 2018 was a relatively puny $24.2 billion. &nbsp;

“Tariffs are a beautiful thing,” Trump told CNBC’s Squawk Box show on June 10, 2019. But so far, the tariffs Trump has imposed on China aren’t working. Latest data shows China’s trade surplus with the US trade climbed by $2.1 billion to $29.2 billion for the month of April 2019.

At the G20 summit, Prime Minister Narendra Modi is scheduled to have a short bilateral meeting with Trump. Trade, technology and defence will dominate the conversation. Trump wants India to cut import duties on a swathe of goods, including medical stents whose suppliers have a strong lobby in the US. &nbsp;

Trump will apply additional pressure on Modi to stop India buying Russia’s S-400 anti-missile system. The US has already told NATO ally Turkey, which is also buying the S-400, that Washington will no longer support the advanced F-35 fighter jet programme in Turkey. &nbsp;

Modi though has several aces up his sleeve and must tackle Trump’s tactics with a few of his own. Strategically, the US needs India to counter China’s emergence as the world’s pre-eminent superpower over the next two decades. India is the only country with a large economy and military that can help Washington contain China in the Indo-Pacific. &nbsp;

As important as strategy is psychology. Trump is a megalomaniac. He relishes praise. But he also respects strong leaders. One of the reasons Trump constantly praises Xi Jinping whilst decrying China is the strongman image the Chinese leader projects. The last thing Modi should, therefore, do at the G20 summit in Osaka next week is fawn over Trump in the hope that his administration will soften its stand over trade tariffs and the S-400. Far better to adopt Xi’s playbook with Trump: be friendly, but firm. Xi hasn’t conceded an inch to Trump on trade or technology but has kept the dialogue going. By slapping tariffs last week on US exports covering 28 items, India has made a good beginning. &nbsp;

India’s consumer market is the world’s second largest. India also has the second highest percentage of Internet users (12 per cent) in the world, behind China (21 per cent) but ahead of the US (8 per cent). Washington does have legitimate complaints on India’s restrictive laws on e-commerce firms. These and other trade issues will need to be sorted out by the new team in the commerce and finance ministries.&nbsp;

As commerce and industry minister, Piyush Goyal is well suited to negotiate knotty trade disputes with the US. The MoS in the commerce ministry, Hardip Singh Puri, is another experienced negotiator, having spent several years as India’s permanent representative at the United Nations in New York. &nbsp;

Finance Minister Nirmala Sitharaman’s stint as defence minister will prove useful while negotiating the difficult terrain over India’s commitment to buy the S-400. Advance payment has already been made to Russia and cancelling the contract is neither feasible nor desirable. India needs to maintain its links with Russian defence contractors to avoid over-dependence on American military hardware. &nbsp;

India’s trump card is the fact that both the US and China need it in their corner. Washington knows that a China-Russia axis can pose a threat to the Western alliance. With the European Union sclerotic and Britain enervated by Brexit, the US has few allies apart from India with both large economies and militaries. &nbsp;

China, for its part, needs to keep India onside as an antidote to the US bullying. The Wuhan spirit and Xi’s likely return trip to Modi’s constituency Varanasi in October this year is aimed at keeping India in good humour and as far out of Washington’s orbit of influence as possible. &nbsp;

Modi will this have to play his cards deftly in Osaka. It is likely to be another decade before India’s economic and military heft reaches a level that makes it part of an emerging Isosceles triangle with the US and China. Till then, stay flexible, but on core issues, resolute as Trump lumbers through the G20 summit in Japan next week.

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-dealing-with-donald-trump-2762858">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

United States President Donald Trump is obsessed with trade tariffs. He misses no opportunity to upbraid China, India, Mexico and even the European Union (EU) on the high tariffs they impose on US products.

United States President Donald Trump is obsessed with trade tariffs. He misses no opportunity to upbraid China, India, Mexico and even the European Union (EU) on the high tariffs they impose on US products. He is especially incensed by India’s 50 per cent import duty on Harley Davidson motorcycles, which have an infinitesimal market share in India. Yet for Trump, it is a symbol of how other countries “rip off America”, as he said in a recent television interview. Trump has used tariff threats to bully Mexico into sending 6,000 Mexican troops to stop refugees fleeing Central American countries like El Salvador and Honduras before they reach the US-Mexico border. Trump has, meanwhile, held out a threat to slap 25 per cent tariffs on Chinese exports to the US valued at $300 billion in addition to the tariffs already in place on $250 billion worth of Chinese exports. Trump is expected to meet Chinese President Xi Jinping at the G20 Summit in Osaka, Japan, on June 28-29 to thrash out the issues in the escalating US-China trade war. Where does India fit in? India-US trade is a fraction of China-US trade. China’s trade surplus with the US that sends Trump into near-delirium was $419.2 billion in 2018. India’s trade surplus with the US in 2018 was a relatively puny $24.2 billion. “Tariffs are a beautiful thing,” Trump told CNBC’s Squawk Box show on June 10, 2019. But so far, the tariffs Trump has imposed on China aren’t working. Latest data shows China’s trade surplus with the US trade climbed by $2.1 billion to $29.2 billion for the month of April 2019. At the G20 summit, Prime Minister Narendra Modi is scheduled to have a short bilateral meeting with Trump. Trade, technology and defence will dominate the conversation. Trump wants India to cut import duties on a swathe of goods, including medical stents whose suppliers have a strong lobby in the US. Trump will apply additional pressure on Modi to stop India buying Russia’s S-400 anti-missile system. The US has already told NATO ally Turkey, which is also buying the S-400, that Washington will no longer support the advanced F-35 fighter jet programme in Turkey. Modi though has several aces up his sleeve and must tackle Trump’s tactics with a few of his own. Strategically, the US needs India to counter China’s emergence as the world’s pre-eminent superpower over the next two decades. India is the only country with a large economy and military that can help Washington contain China in the Indo-Pacific. As important as strategy is psychology. Trump is a megalomaniac. He relishes praise. But he also respects strong leaders. One of the reasons Trump constantly praises Xi Jinping whilst decrying China is the strongman image the Chinese leader projects. The last thing Modi should, therefore, do at the G20 summit in Osaka next week is fawn over Trump in the hope that his administration will soften its stand over trade tariffs and the S-400. Far better to adopt Xi’s playbook with Trump: be friendly, but firm. Xi hasn’t conceded an inch to Trump on trade or technology but has kept the dialogue going. By slapping tariffs last week on US exports covering 28 items, India has made a good beginning. India’s consumer market is the world’s second largest. India also has the second highest percentage of Internet users (12 per cent) in the world, behind China (21 per cent) but ahead of the US (8 per cent). Washington does have legitimate complaints on India’s restrictive laws on e-commerce firms. These and other trade issues will need to be sorted out by the new team in the commerce and finance ministries. As commerce and industry minister, Piyush Goyal is well suited to negotiate knotty trade disputes with the US. The MoS in the commerce ministry, Hardip Singh Puri, is another experienced negotiator, having spent several years as India’s permanent representative at the United Nations in New York. Finance Minister Nirmala Sitharaman’s stint as defence minister will prove useful while negotiating the difficult terrain over India’s commitment to buy the S-400. Advance payment has already been made to Russia and cancelling the contract is neither feasible nor desirable. India needs to maintain its links with Russian defence contractors to avoid over-dependence on American military hardware. India’s trump card is the fact that both the US and China need it in their corner. Washington knows that a China-Russia axis can pose a threat to the Western alliance. With the European Union sclerotic and Britain enervated by Brexit, the US has few allies apart from India with both large economies and militaries. China, for its part, needs to keep India onside as an antidote to the US bullying. The Wuhan spirit and Xi’s likely return trip to Modi’s constituency Varanasi in October this year is aimed at keeping India in good humour and as far out of Washington’s orbit of influence as possible. Modi will this have to play his cards deftly in Osaka. It is likely to be another decade before India’s economic and military heft reaches a level that makes it part of an emerging Isosceles triangle with the US and China. Till then, stay flexible, but on core issues, resolute as Trump lumbers through the G20 summit in Japan next week. (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.)

PM Narendra Modi must play his cards deftly when he meets Donald Trump at G20 Summit

<a href="https://www.wionews.com/photos/game-of-tech-apple-google-facebook-who-will-win-392">Apple</a> Inc has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

<a href="https://www.wionews.com/business-economy/will-apples-roots-in-china-hold-fast-amid-political-storm-222619">Apple</a>'s request was a result of the extended <a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">Sino-US trade dispute</a>, but a trade resolution will not lead to a change in the company's decision, Nikkei said, citing multiple sources.

The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said.

Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported.

The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favourites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private.

Last week, Foxconn said it had enough capacity outside China to meet Apple's demand in the American market if the company needed to adjust its production lines, as US President Donald Trump threatened to slap further $300 billion tariffs on Chinese goods.

China is a key market for Apple as well as a major production center for its devices.

A group of more than 30 people from Apple's capital expense studies team have been negotiating production plans with suppliers and governments over monetary incentives that could be offered to lure Apple manufacturing, the report said.

A deadline has not been set for the suppliers to finalise their business proposals, Nikkei said, adding that it would take at least 18 months to begin production after choosing a location.

Apple and Foxconn did not immediately respond to a request for comment on the report.

Apple Inc has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday.

Apple Inc has asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, according to a Nikkei Asian Review report on Wednesday. Apple's request was a result of the extended Sino-US trade dispute, but a trade resolution will not lead to a change in the company's decision, Nikkei said, citing multiple sources. The iPhone maker has decided the risks of depending heavily on manufacturing in China are too great and even rising, it said. Key iPhone assemblers Foxconn, Pegatron Corp, Wistron Corp, major MacBook maker Quanta Computer Inc, iPad maker Compal Electronics Inc, and AirPods makers Inventec Corp, Luxshare-ICT and Goertek have been asked to evaluate options outside of China, Nikkei reported. The countries being considered include Mexico, India, Vietnam, Indonesia and Malaysia. India and Vietnam are among the favourites for smartphones, Nikkei said, citing sources who did not want to be identified as the discussions are private. Last week, Foxconn said it had enough capacity outside China to meet Apple's demand in the American market if the company needed to adjust its production lines, as US President Donald Trump threatened to slap further $300 billion tariffs on Chinese goods. China is a key market for Apple as well as a major production center for its devices. A group of more than 30 people from Apple's capital expense studies team have been negotiating production plans with suppliers and governments over monetary incentives that could be offered to lure Apple manufacturing, the report said. A deadline has not been set for the suppliers to finalise their business proposals, Nikkei said, adding that it would take at least 18 months to begin production after choosing a location. Apple and Foxconn did not immediately respond to a request for comment on the report.

Apple explores moving 15-30% production from China; India, Vietnam to benefit: Report

France and Germany will increase their efforts to reduce tensions over Iran, but time was running out and the risk of war could not be ruled out, their foreign ministers said on Wednesday.&nbsp;

"We want to unify our efforts so that there is a de-escalation process that starts," French Foreign Minister Jean-Yves Le Drian told reporters after a cabinet meeting in Paris.

"There is still time and we hope all the actors show more calm. There is still time, but only a little time," he said.

Britain, France and Germany, known as the E3, plan a new push to keep Iran in the 2015 nuclear deal despite Tehran`s threat to violate one of its central limits, but they may be nearing the end of the diplomatic road they embarked on more than 15 years ago, diplomats told Reuters on Tuesday.

Germany Foreign Minister Heiko Maas, who attended the French cabinet meeting, echoed those comments adding that "the risk of war in the Gulf has not been averted."

"We need to do everything so that it doesn`t come to this. That`s why we are talking to all sides. I was in Iran and we are also talking with the Americans. We need to de-escalate through dialogue. It is a time of `diplomacy first` and that`s what we are committed to."

The E3 countries have strained to keep the accord between major powers and Iran on life support since US President Donald Trump unilaterally withdrew from it last year and began re-imposing American sanctions.

Le Drian said Iran`s threat on Monday to breach the 2015 nuclear deal`s limit on its uranium hexafluoride stocks within 10 days was very worrying and not in Tehran`s interest, but he also pointed the finger at the United States.&nbsp;

"We also consider the US` decision to break with the accord is not good and that its maximum pressure campaign is contributing to tensions," he said.

France and Germany will increase their efforts to reduce tensions over Iran, but time was running out and the risk of war could not be ruled out, their foreign ministers said on Wednesday.

France and Germany will increase their efforts to reduce tensions over Iran, but time was running out and the risk of war could not be ruled out, their foreign ministers said on Wednesday. "We want to unify our efforts so that there is a de-escalation process that starts," French Foreign Minister Jean-Yves Le Drian told reporters after a cabinet meeting in Paris. "There is still time and we hope all the actors show more calm. There is still time, but only a little time," he said. Britain, France and Germany, known as the E3, plan a new push to keep Iran in the 2015 nuclear deal despite Tehran`s threat to violate one of its central limits, but they may be nearing the end of the diplomatic road they embarked on more than 15 years ago, diplomats told Reuters on Tuesday. Germany Foreign Minister Heiko Maas, who attended the French cabinet meeting, echoed those comments adding that "the risk of war in the Gulf has not been averted." "We need to do everything so that it doesn`t come to this. That`s why we are talking to all sides. I was in Iran and we are also talking with the Americans. We need to de-escalate through dialogue. It is a time of `diplomacy first` and that`s what we are committed to." The E3 countries have strained to keep the accord between major powers and Iran on life support since US President Donald Trump unilaterally withdrew from it last year and began re-imposing American sanctions. Le Drian said Iran`s threat on Monday to breach the 2015 nuclear deal`s limit on its uranium hexafluoride stocks within 10 days was very worrying and not in Tehran`s interest, but he also pointed the finger at the United States. "We also consider the US` decision to break with the accord is not good and that its maximum pressure campaign is contributing to tensions," he said.

France, Germany to increase efforts to reduce Iran tensions, avert war: Ministers

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say.

American and Chinese scientists have co-authored thousands of papers each year, far outpacing the output from scientific collaborations between any other two nations, according to a 2018 survey by academic database Nature Index.

But it is getting tougher for researchers to work together on projects and share data for peer review, as American institutions tighten rules for accepting foreign funding and intensify vetting of foreign partners, several researchers told AFP.

The pressure is the result of a clampdown by Washington on what it describes as espionage and technology theft through academic contacts, with the White House warning last year that Chinese nationals studying or working in the United States could be manipulated or forced to "serve Beijing's military and strategic ambitions".

In one of the latest countermeasures, the US Department of Energy -- which conducts advanced research on everything from supercomputers to nuclear weapons -- blocked its scientists from participating in a foreign government's talent recruitment programmes, citing national security and competition concerns.

Its order, seen by AFP, did not mention a specific country, but officials pointed to Beijing's lucrative 'Thousand Talents' programme.

The initiative offers non-Chinese, and Chinese working abroad, high pay to deliver top-level technology to China.&nbsp;

The increased mistrust is bound to have an impact on research collaboration, academics and experts say.

An increasing number of young Chinese scholars are told they cannot participate in a project for security reasons, said an official at Pennsylvania State University, who requested anonymity given the sensitivity of the topic.

"Research collaboration between China and the US will be severely disrupted by the trade war-turned-technology war, which essentially is a talent war," said Cao Cong, professor of innovation studies at Nottingham University's China campus in the city of Ningbo.

Beijing has committed billions of dollars in recent years to narrow China's science and technology gap with the United States, Cao said.

But China is still "heavily dependent" on the US for technology transfers and training, he added, and the "cut off" will have an impact in coming years.

Visa Troubles

The rising number of visa denials have prompted a warning from China's education ministry that students and academics could have their study or research plans foiled by refusals or delays.

One in eight Chinese applicants seeking US visas for academic or research purposes between January and March this year had difficulties securing them, a marked increase from last year, education ministry official Xu Yongji said.

Star quantum physicist Pan Jianwei was unable to attend a meeting of the American Association for the Advancement of Science in February, where he was to collect the prestigious Newcomb Cleveland Prize, due to visa delays.

"I waited for four months before I got a visa in March," Pan told AFP. When it finally arrived, the award ceremony had long passed.

Yi Rao, a prominent Chinese neurobiologist who had worked at Harvard and Northwestern universities in the past, said his application for a US visa to attend a workshop by the National Science Foundation was denied last July without an explanation.

A State Department official said she could not discuss specific visa cases due to US privacy laws.

The State Department has said the increased scrutiny was prompted by rising number of students who were co-opted by foreign intelligence while in the United States.

China is by far the biggest source of international students and scholars on US campuses, with 360,000 attendings last year.

Atmosphere of Suspicion

The cooling of ties is also complicating Beijing's efforts to recruit top Chinese and foreign talent, after US intelligence officials in December said the 'Thousand Talents' programme facilitated the theft of American technology and intellectual property.

Tim Byrnes -- an Australian physicist who won nearly one million yuan ($144,000) from the programme in 2016 for a quantum computing lab at New York University's Shanghai campus -- said he now finds himself in a "precarious position".

"Possibly, some people awarded the Thousand Talents might not be able to apply for grants in the US in future due to fears of leaking intellectual property," Byrnes said.

Since it was launched in 2008, the programme has attracted more than 7,000 Chinese and foreign researchers to China -- mostly from the US -- according to its website.

But Byrnes said he was not asked to share any of his findings with the Chinese government.

"Everything we do is published in academic journals. Everything is disclosed not just to China but to the whole world," he said.

"But the current atmosphere of suspicion is threatening the openness of science."

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say.

A rise in US visa denials for Chinese academics and intensified scrutiny of alleged links to Beijing over fears of potential espionage are having a chilling effect on long-standing research collaboration, researchers say. American and Chinese scientists have co-authored thousands of papers each year, far outpacing the output from scientific collaborations between any other two nations, according to a 2018 survey by academic database Nature Index. But it is getting tougher for researchers to work together on projects and share data for peer review, as American institutions tighten rules for accepting foreign funding and intensify vetting of foreign partners, several researchers told AFP. The pressure is the result of a clampdown by Washington on what it describes as espionage and technology theft through academic contacts, with the White House warning last year that Chinese nationals studying or working in the United States could be manipulated or forced to "serve Beijing's military and strategic ambitions". In one of the latest countermeasures, the US Department of Energy -- which conducts advanced research on everything from supercomputers to nuclear weapons -- blocked its scientists from participating in a foreign government's talent recruitment programmes, citing national security and competition concerns. Its order, seen by AFP, did not mention a specific country, but officials pointed to Beijing's lucrative 'Thousand Talents' programme. The initiative offers non-Chinese, and Chinese working abroad, high pay to deliver top-level technology to China. The increased mistrust is bound to have an impact on research collaboration, academics and experts say. An increasing number of young Chinese scholars are told they cannot participate in a project for security reasons, said an official at Pennsylvania State University, who requested anonymity given the sensitivity of the topic. "Research collaboration between China and the US will be severely disrupted by the trade war-turned-technology war, which essentially is a talent war," said Cao Cong, professor of innovation studies at Nottingham University's China campus in the city of Ningbo. Beijing has committed billions of dollars in recent years to narrow China's science and technology gap with the United States, Cao said. But China is still "heavily dependent" on the US for technology transfers and training, he added, and the "cut off" will have an impact in coming years. Visa Troubles The rising number of visa denials have prompted a warning from China's education ministry that students and academics could have their study or research plans foiled by refusals or delays. One in eight Chinese applicants seeking US visas for academic or research purposes between January and March this year had difficulties securing them, a marked increase from last year, education ministry official Xu Yongji said. Star quantum physicist Pan Jianwei was unable to attend a meeting of the American Association for the Advancement of Science in February, where he was to collect the prestigious Newcomb Cleveland Prize, due to visa delays. "I waited for four months before I got a visa in March," Pan told AFP. When it finally arrived, the award ceremony had long passed. Yi Rao, a prominent Chinese neurobiologist who had worked at Harvard and Northwestern universities in the past, said his application for a US visa to attend a workshop by the National Science Foundation was denied last July without an explanation. A State Department official said she could not discuss specific visa cases due to US privacy laws. The State Department has said the increased scrutiny was prompted by rising number of students who were co-opted by foreign intelligence while in the United States. China is by far the biggest source of international students and scholars on US campuses, with 360,000 attendings last year. Atmosphere of Suspicion The cooling of ties is also complicating Beijing's efforts to recruit top Chinese and foreign talent, after US intelligence officials in December said the 'Thousand Talents' programme facilitated the theft of American technology and intellectual property. Tim Byrnes -- an Australian physicist who won nearly one million yuan ($144,000) from the programme in 2016 for a quantum computing lab at New York University's Shanghai campus -- said he now finds himself in a "precarious position". "Possibly, some people awarded the Thousand Talents might not be able to apply for grants in the US in future due to fears of leaking intellectual property," Byrnes said. Since it was launched in 2008, the programme has attracted more than 7,000 Chinese and foreign researchers to China -- mostly from the US -- according to its website. But Byrnes said he was not asked to share any of his findings with the Chinese government. "Everything we do is published in academic journals. Everything is disclosed not just to China but to the whole world," he said. "But the current atmosphere of suspicion is threatening the openness of science."

Amid heightened US-China tensions, science suffers collateral damage

US President Donald Trump said Tuesday he had a positive phone conversation with his<a href="https://www.wionews.com/world/waves-of-voices-within-us-against-additional-tariffs-going-higher-china-228368"> Chinese counterpart Xi Jinping</a> and the two leaders will hold an "extended meeting" next week at the Group of 20 summit in Japan.

Trump's tweet set a more upbeat tone for his talks with Xi after worsening tensions&nbsp;over whether the world's top two economies would be able to resolve their differences and end an increasingly damaging trade war.

"Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan," Trump said on Twitter.&nbsp;

"Our respective teams will begin talks prior to our meeting."

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Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1140977371421564928?ref_src=twsrc%5Etfw">June 18, 2019</a></blockquote>
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Chinese President Xi Jinping called for cooperation in a phone call with Donald Trump, confirming he would meet the US leader at the G20 summit amid a bruising trade war.

"China and the US will both gain by cooperating, and lose by fighting," Xi told Trump, according to a readout by Chinese state broadcaster CCTV.&nbsp;

Trump's&nbsp;tweet came shortly before top US negotiator, trade representative Robert Lighthizer began his appearance before a Senate committee to discuss the status of the trade confrontation, as well as the new free trade agreement with Canada and Mexico.

Trump's tweet sparked a rally on Wall Street, where the multi-front trade battles have repeatedly rankled investors worried about dented corporate profits and disruption to one of the major axes of global trade.

Global markets are concerned about Trump's threat to impose more steep tariffs on China, to cover an additional $300 billion in goods, which could hurt the already slowing Chinese economy and spread the gloom worldwide.

Trump last week threatened to "immediately" jack up tariffs should Xi fail to show at the meeting. The US already has 25 per cent duties on more than $250 billion of imports from China.

In addition to trade, Xi and Trump are expected to discuss US-led efforts to persuade North Korea to give up its nuclear arsenal.

Ahead of the G20 leaders' summit in Osaka, Japan, Xi will make the first visit to North Korea by a Chinese president in 14 years.&nbsp;

US President Donald Trump said Tuesday he had a positive phone conversation with his Chinese counterpart Xi Jinping and the two leaders will hold an "extended meeting" next week at the Group of 20 summit in Japan.

US President Donald Trump said Tuesday he had a positive phone conversation with his Chinese counterpart Xi Jinping and the two leaders will hold an "extended meeting" next week at the Group of 20 summit in Japan. Trump's tweet set a more upbeat tone for his talks with Xi after worsening tensions over whether the world's top two economies would be able to resolve their differences and end an increasingly damaging trade war. "Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan," Trump said on Twitter. "Our respective teams will begin talks prior to our meeting." Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting. — Donald J. Trump (@realDonaldTrump) June 18, 2019 × Chinese President Xi Jinping called for cooperation in a phone call with Donald Trump, confirming he would meet the US leader at the G20 summit amid a bruising trade war. "China and the US will both gain by cooperating, and lose by fighting," Xi told Trump, according to a readout by Chinese state broadcaster CCTV. Trump's tweet came shortly before top US negotiator, trade representative Robert Lighthizer began his appearance before a Senate committee to discuss the status of the trade confrontation, as well as the new free trade agreement with Canada and Mexico. Trump's tweet sparked a rally on Wall Street, where the multi-front trade battles have repeatedly rankled investors worried about dented corporate profits and disruption to one of the major axes of global trade. Global markets are concerned about Trump's threat to impose more steep tariffs on China, to cover an additional $300 billion in goods, which could hurt the already slowing Chinese economy and spread the gloom worldwide. Trump last week threatened to "immediately" jack up tariffs should Xi fail to show at the meeting. The US already has 25 per cent duties on more than $250 billion of imports from China. In addition to trade, Xi and Trump are expected to discuss US-led efforts to persuade North Korea to give up its nuclear arsenal. Ahead of the G20 leaders' summit in Osaka, Japan, Xi will make the first visit to North Korea by a Chinese president in 14 years.

China, US will both gain by cooperating, lose by fighting: Xi to Trump in phone call

China on Tuesday urged the United States to properly solve<a href="https://www.wionews.com/world/amid-heightened-us-china-tensions-science-suffers-collateral-damage-228220"> trade disputes through consultations </a>based on the principles of equality and mutual respect.

Foreign ministry spokesman Lu Kang made the statement at a regular press conference in Beijing, as a series of public hearings regarding proposed US tariffs on approximately $300 billion worth of Chinese products kicked off in Washington D.C. on Monday.

The hearings, to be held by the Office of the US Trade Representative (USTR) daily for two weeks, will be attended by hundreds of witnesses, most of whom are expected to voice their opposition to the proposed tariffs and explain how trade protectionism would hurt their businesses, industries and consumers.

"I have noticed that, as the hearing for proposed US tariffs&nbsp;on Chinese imports gets underway, the waves of voices within the United States against additional tariffs are going higher and higher. Even (Larry) Kudlow, director of the White House National Economic Council, openly admitted that US businesses and consumers will pay for the new tariffs. In addition, according to a recent report by Goldman Sachs, the costs of the tariffs imposed by the US government completely shifted to American companies and families, and their impact on American commodity prices is greater than previously estimated," said Lu.

Twenty-five per cent tariffs on some 250 billion dollars' worth in goods from China are currently in effect, and have already backfired.

Last week, over 600 US companies and associations sent a letter to the White House, urging it to stop escalating trade tensions with China through tariff hikes.

According to the anti-tariff campaign "Tariffs Hurt the Heartland," the proposed new tariffs, if imposed, would result in the loss of more than 2 million US jobs, add more than 2,000 dollars in costs for an average American family of four, and reduce the value of US gross domestic product by 1 per cent, combined with the impact of previously implemented tariffs and retaliatory measures imposed by the Chinese side.

The spokesman stressed that for a long period of time, trade and investment brought huge benefits to industries and consumers in both the US and China.

"History has proved that the trade disputes between the United States and China can be properly resolved through consultation, as long as the negotiation and dialogue are based on mutual respect, equality and mutual benefit. Any practice against such principles is doomed to fail," he said.

China on Tuesday urged the United States to properly solve trade disputes through consultations based on the principles of equality and mutual respect. Foreign ministry spokesman Lu Kang made the statement at a regular press conference in Beijing, as a series of public hearings regarding proposed US tariffs on approximately $300 billion worth of Chinese products kicked off in Washington D.

China on Tuesday urged the United States to properly solve trade disputes through consultations based on the principles of equality and mutual respect. Foreign ministry spokesman Lu Kang made the statement at a regular press conference in Beijing, as a series of public hearings regarding proposed US tariffs on approximately $300 billion worth of Chinese products kicked off in Washington D.C. on Monday. The hearings, to be held by the Office of the US Trade Representative (USTR) daily for two weeks, will be attended by hundreds of witnesses, most of whom are expected to voice their opposition to the proposed tariffs and explain how trade protectionism would hurt their businesses, industries and consumers. "I have noticed that, as the hearing for proposed US tariffs on Chinese imports gets underway, the waves of voices within the United States against additional tariffs are going higher and higher. Even (Larry) Kudlow, director of the White House National Economic Council, openly admitted that US businesses and consumers will pay for the new tariffs. In addition, according to a recent report by Goldman Sachs, the costs of the tariffs imposed by the US government completely shifted to American companies and families, and their impact on American commodity prices is greater than previously estimated," said Lu. Twenty-five per cent tariffs on some 250 billion dollars' worth in goods from China are currently in effect, and have already backfired. Last week, over 600 US companies and associations sent a letter to the White House, urging it to stop escalating trade tensions with China through tariff hikes. According to the anti-tariff campaign "Tariffs Hurt the Heartland," the proposed new tariffs, if imposed, would result in the loss of more than 2 million US jobs, add more than 2,000 dollars in costs for an average American family of four, and reduce the value of US gross domestic product by 1 per cent, combined with the impact of previously implemented tariffs and retaliatory measures imposed by the Chinese side. The spokesman stressed that for a long period of time, trade and investment brought huge benefits to industries and consumers in both the US and China. "History has proved that the trade disputes between the United States and China can be properly resolved through consultation, as long as the negotiation and dialogue are based on mutual respect, equality and mutual benefit. Any practice against such principles is doomed to fail," he said.

Waves of voices within US against additional tariffs going higher: China

Scholars and experts expressed their views that no one will benefit from the trade tensions between China and the United States when they gathered in Beijing Thursday for a symposium on China-US trade ties organized by Tsinghua University. In the name of protecting domestic industries, Washington has placed steep tariffs on billions of US dollars' worth of products from China, a heavy blow to the two countries' economic and trade relations.

US-China trade friction hurting world economic chain: Chinese scholars

China's Huawei has applied to trademark its "Hongmeng" operating system (OS) in at least <a href="https://www.wionews.com/world/huawei-obtains-46-commercial-5g-contracts-in-30-countries-225175">nine countries and Europe</a>, data from a UN body shows, in a sign it may be deploying a back-up plan in key markets as US sanctions threaten its business model.&nbsp;

The move comes after the Trump administration put <a href="https://www.wionews.com/world/with-us-driving-west-to-shun-it-huawei-seeks-to-strengthen-grip-on-africa-225593">Huawei on a blacklist</a> last month that barred it from doing business with US tech companies such as Alphabet Inc, whose Android OS is used in Huawei's phones.

Since then, Huawei - the world's biggest maker of telecoms network gear - has filed for a Hongmeng trademark in countries such as Cambodia, Canada, South Korea and New Zealand, data from the UN World Intellectual Property Organization (WIPO) shows.&nbsp;

It also filed an application in Peru on May 27, according to the country's anti-trust agency Indecopi.

Huawei has a back-up OS in case it is cut off from US-made software, Richard Yu, CEO of the firm`s consumer division, told German newspaper Die Welt in an interview earlier this year.&nbsp;

The firm, also the world's second-largest maker of smartphones, has not yet revealed details about its OS.

Its applications to trademark the OS show Huawei wants to use "Hongmeng" for gadgets ranging from smartphones, portable computers to robots and car televisions.

At home, Huawei applied for a Hongmeng trademark in August last year and received a nod last month, according to a filing on China`s intellectual property administration`s website.&nbsp;

According to WIPO data, the earliest Huawei applications to trademark the Hongmeng OS outside China were made on May 14 to the European Union Intellectual Property Office and South Korea, or right after the United States flagged it would stick Huawei on an export blacklist.

Huawei has come under mounting scrutiny for over a year, led by US allegations that "back doors" in its routers, switches and other gear could allow China to spy on US communications.&nbsp;

The company has denied its products pose a security threat.

However, consumers have been spooked by how matters have escalated, with many looking to offload their devices on worries they would be cut off from Android updates in the wake of the US blacklist.

Huawei's hopes to become the world's top selling smartphone maker in the fourth quarter this year have now been delayed, a senior Huawei executive said this week.

Peru's Indecopi has said it needs more information from Huawei before it can register a trademark for Hongmeng in the country, where there are some 5.5 million Huawei phone users.&nbsp;

The agency did not give details on the documents it had sought, but said Huawei had up to nine months to respond.

Huawei representatives in Peru declined to provide immediate comment, while the Chinese embassy in Lima did not respond to requests for comment.

China's Huawei has applied to trademark its "Hongmeng" operating system (OS) in at least nine countries and Europe, data from a UN body shows, in a sign it may be deploying a back-up plan in key markets as US sanctions threaten its business model.

China's Huawei has applied to trademark its "Hongmeng" operating system (OS) in at least nine countries and Europe, data from a UN body shows, in a sign it may be deploying a back-up plan in key markets as US sanctions threaten its business model. The move comes after the Trump administration put Huawei on a blacklist last month that barred it from doing business with US tech companies such as Alphabet Inc, whose Android OS is used in Huawei's phones. Since then, Huawei - the world's biggest maker of telecoms network gear - has filed for a Hongmeng trademark in countries such as Cambodia, Canada, South Korea and New Zealand, data from the UN World Intellectual Property Organization (WIPO) shows. It also filed an application in Peru on May 27, according to the country's anti-trust agency Indecopi. Huawei has a back-up OS in case it is cut off from US-made software, Richard Yu, CEO of the firm`s consumer division, told German newspaper Die Welt in an interview earlier this year. The firm, also the world's second-largest maker of smartphones, has not yet revealed details about its OS. Its applications to trademark the OS show Huawei wants to use "Hongmeng" for gadgets ranging from smartphones, portable computers to robots and car televisions. At home, Huawei applied for a Hongmeng trademark in August last year and received a nod last month, according to a filing on China`s intellectual property administration`s website. According to WIPO data, the earliest Huawei applications to trademark the Hongmeng OS outside China were made on May 14 to the European Union Intellectual Property Office and South Korea, or right after the United States flagged it would stick Huawei on an export blacklist. Huawei has come under mounting scrutiny for over a year, led by US allegations that "back doors" in its routers, switches and other gear could allow China to spy on US communications. The company has denied its products pose a security threat. However, consumers have been spooked by how matters have escalated, with many looking to offload their devices on worries they would be cut off from Android updates in the wake of the US blacklist. Huawei's hopes to become the world's top selling smartphone maker in the fourth quarter this year have now been delayed, a senior Huawei executive said this week. Peru's Indecopi has said it needs more information from Huawei before it can register a trademark for Hongmeng in the country, where there are some 5.5 million Huawei phone users. The agency did not give details on the documents it had sought, but said Huawei had up to nine months to respond. Huawei representatives in Peru declined to provide immediate comment, while the Chinese embassy in Lima did not respond to requests for comment.

Huawei files to trademark mobile OS around the world amid US ban

By Amitrajeet A Batabyal&nbsp;

President Donald Trump’s trade war with China is based on two basic and complementary assumptions: The US economy is strong and, perhaps more importantly, stronger than the Chinese economy.

Last summer when the war began heating up, both assumptions were certainly true. The American economy was booming, while China’s was slowing. Hence, the US was in a better position to withstand any pain in a tariff war of attrition.

But the first of those assumptions, at least, is beginning to falter as signs grow of economic weakness in the US.

As an economist who conducts research in international trade, I believe that a weaker US economy would likely affect Trump’s ability to engage in a prolonged trade war with China – no matter how much he might want to.

Signs of Weakness

The US economy has been expanding for a decade now, and no economy can continue to grow indefinitely. The May jobs report was the latest indicator that the party may be coming to an end.

The report showed that the US economy added only 75,000 jobs that month, a significantly lower number than the 224,000 jobs added in April. Even though the unemployment rate stayed at the extremely low figure of 3.6 per cent, worryingly, there was virtually no wage growth. In addition, another key metric, the so-called ISM Manufacturing Index, fell to its lowest level in Trump’s presidency in May.

And while GDP growth has remained fairly robust, there have been other harbingers of underlying weakness in recent months, including a bond market signal that a recession may be on the horizon and a broad measure of the health of the US economy that recorded its slowest increase in more than two years.

Putting this all together, it suggests a key premise behind Trump’s trade war with China may not hold up for much longer.

Trade War’s Role

One of the reasons to blame for economic sluggishness is the trade war itself and specifically Trump’s use of tariffs to prosecute it.

Contrary to what he has said in the past, elementary trade theory shows that tariffs not only hurt the intended target but the tariff-imposing nation as well. This fundamental theoretical prediction is now being borne out in practice.

For instance, a recent and ongoing study by a group of economists shows that the higher prices resulting from Trump’s tariffs on China have been paid largely by US retailers, and some of them may soon be passed on to consumers. A separate study focused on washing machines found that tariffs resulted in an average 12 per cent increase in the price of the appliance, whether it was imported or made domestically.

Then there’s the impact of the retaliatory tariffs. Studies show that the US coal, crude oil and agricultural sectors have all been detrimentally affected by Chinese tariffs imposed in response. In addition, there is a reason to believe that the slowdown in American job growth is being felt most acutely in the sectors that are most susceptible to trade tensions such as manufacturing, construction, mining and logging.

In other words, if the deleterious impacts of Trump’s trade war with China continue to be felt in an economy that is weakening, it is certainly likely that there will be much greater opposition to these tariffs from industry groups and lawmakers.

These possibilities cast serious doubt on Trump’s ability to continue – let alone achieve the concessions he might need to win – a protracted trade war with China.

Fed to the Rescue?

Trump may end up having an unexpected ally in the Federal Reserve, however.

Evidence of weakness has already ended the US central bank’s policy of monetary tightening by raising interest rates. The latest data will no doubt put considerable pressure on the Fed to actually cut rates to avoid a more sustained slowdown.

If it does, then the Fed-driven stimulation will mitigate some of the pain felt by Americans as a result of Trump’s trade war with China and allow him to continue to prosecute his trade war.

High Stakes

That being said, it is still too early to say definitively that the US economy is cooling.

And, given Trump’s unpredictability, it’s impossible to forecast what may happen no matter what. At least for now, the president appears to have no intention of backing down.

But for me, a weakening economy adds to the reasons why this trade war is not only futile but harmful. For one thing, I believe tariffs alone cannot address the underlying structural problems that afflict US-China trade.

And let’s not forget that the trade war has global repercussions. The Organisation for Economic Cooperation and Development recently warned that an escalation of this trade war – as Trump has repeatedly threatened – will damage the rest of the world, trimming 0.7 per cent off global growth by 2021. That may not sound like much, but this trimming amounts to a whopping $600 billion in lost economic activity.

It’s a reminder that the stakes of this war are enormous.

(Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology)

(This article was originally published on The Conversation. Read the<a href="https://theconversation.com/could-a-weakening-us-economy-imperil-trumps-trade-war-against-china-118576"> 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;

By Amitrajeet A Batabyal President Donald Trump’s trade war with China is based on two basic and complementary assumptions: The US economy is strong and, perhaps more importantly, stronger than the Chinese economy.

By Amitrajeet A Batabyal President Donald Trump’s trade war with China is based on two basic and complementary assumptions: The US economy is strong and, perhaps more importantly, stronger than the Chinese economy. Last summer when the war began heating up, both assumptions were certainly true. The American economy was booming, while China’s was slowing. Hence, the US was in a better position to withstand any pain in a tariff war of attrition. But the first of those assumptions, at least, is beginning to falter as signs grow of economic weakness in the US. As an economist who conducts research in international trade, I believe that a weaker US economy would likely affect Trump’s ability to engage in a prolonged trade war with China – no matter how much he might want to. Signs of Weakness The US economy has been expanding for a decade now, and no economy can continue to grow indefinitely. The May jobs report was the latest indicator that the party may be coming to an end. The report showed that the US economy added only 75,000 jobs that month, a significantly lower number than the 224,000 jobs added in April. Even though the unemployment rate stayed at the extremely low figure of 3.6 per cent, worryingly, there was virtually no wage growth. In addition, another key metric, the so-called ISM Manufacturing Index, fell to its lowest level in Trump’s presidency in May. And while GDP growth has remained fairly robust, there have been other harbingers of underlying weakness in recent months, including a bond market signal that a recession may be on the horizon and a broad measure of the health of the US economy that recorded its slowest increase in more than two years. Putting this all together, it suggests a key premise behind Trump’s trade war with China may not hold up for much longer. Trade War’s Role One of the reasons to blame for economic sluggishness is the trade war itself and specifically Trump’s use of tariffs to prosecute it. Contrary to what he has said in the past, elementary trade theory shows that tariffs not only hurt the intended target but the tariff-imposing nation as well. This fundamental theoretical prediction is now being borne out in practice. For instance, a recent and ongoing study by a group of economists shows that the higher prices resulting from Trump’s tariffs on China have been paid largely by US retailers, and some of them may soon be passed on to consumers. A separate study focused on washing machines found that tariffs resulted in an average 12 per cent increase in the price of the appliance, whether it was imported or made domestically. Then there’s the impact of the retaliatory tariffs. Studies show that the US coal, crude oil and agricultural sectors have all been detrimentally affected by Chinese tariffs imposed in response. In addition, there is a reason to believe that the slowdown in American job growth is being felt most acutely in the sectors that are most susceptible to trade tensions such as manufacturing, construction, mining and logging. In other words, if the deleterious impacts of Trump’s trade war with China continue to be felt in an economy that is weakening, it is certainly likely that there will be much greater opposition to these tariffs from industry groups and lawmakers. These possibilities cast serious doubt on Trump’s ability to continue – let alone achieve the concessions he might need to win – a protracted trade war with China. Fed to the Rescue? Trump may end up having an unexpected ally in the Federal Reserve, however. Evidence of weakness has already ended the US central bank’s policy of monetary tightening by raising interest rates. The latest data will no doubt put considerable pressure on the Fed to actually cut rates to avoid a more sustained slowdown. If it does, then the Fed-driven stimulation will mitigate some of the pain felt by Americans as a result of Trump’s trade war with China and allow him to continue to prosecute his trade war. High Stakes That being said, it is still too early to say definitively that the US economy is cooling. And, given Trump’s unpredictability, it’s impossible to forecast what may happen no matter what. At least for now, the president appears to have no intention of backing down. But for me, a weakening economy adds to the reasons why this trade war is not only futile but harmful. For one thing, I believe tariffs alone cannot address the underlying structural problems that afflict US-China trade. And let’s not forget that the trade war has global repercussions. The Organisation for Economic Cooperation and Development recently warned that an escalation of this trade war – as Trump has repeatedly threatened – will damage the rest of the world, trimming 0.7 per cent off global growth by 2021. That may not sound like much, but this trimming amounts to a whopping $600 billion in lost economic activity. It’s a reminder that the stakes of this war are enormous. (Arthur J. Gosnell Professor of Economics, Rochester Institute of Technology) (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.)

Could a weakening US economy imperil Trump’s trade war against China?

President Donald Trump said Wednesday he understands <a href="https://www.wionews.com/world/china-state-media-blames-hong-kong-protests-on-lawlessness-226680">Hong Kong protesters</a> who have risen up against plans to allow extraditions to China, but hopes they can "work it out" with Beijing.

"I hope they're going to be able to work it out with China," Trump told reporters at the White House, as Hong Kong was rocked by the worst political violence since its handover to China.

"I understand the reason for the demonstration," he said. "I hope it all works out for China and for Hong Kong."

Trump's cautious response to what he said were "massive" demonstrations came as Washington and Beijing try to pick up the pieces of their collapsed talks on resolving a trade war.

"We're doing very well with respect to China," Trump said, referring to huge trade tariffs imposed on Chinese imports.

Trump reiterated that he expects to meet President Xi Jinping at a G20 summit later this month.

"I have a feeling that we're going to make a deal with China," he said. 
&nbsp;

President Donald Trump said Wednesday he understands Hong Kong protesters who have risen up against plans to allow extraditions to China, but hopes they can "work it out" with Beijing.

President Donald Trump said Wednesday he understands Hong Kong protesters who have risen up against plans to allow extraditions to China, but hopes they can "work it out" with Beijing. "I hope they're going to be able to work it out with China," Trump told reporters at the White House, as Hong Kong was rocked by the worst political violence since its handover to China. "I understand the reason for the demonstration," he said. "I hope it all works out for China and for Hong Kong." Trump's cautious response to what he said were "massive" demonstrations came as Washington and Beijing try to pick up the pieces of their collapsed talks on resolving a trade war. "We're doing very well with respect to China," Trump said, referring to huge trade tariffs imposed on Chinese imports. Trump reiterated that he expects to meet President Xi Jinping at a G20 summit later this month. "I have a feeling that we're going to make a deal with China," he said.

Hope protesters in Hong Kong can work it out with China, says Trump

With under three weeks to go before proposed&nbsp;talks&nbsp;between the <a href="https://www.wionews.com/americas/donald-trump-xi-jinping-and-trade-a-high-stakes-game-of-chicken-216697">Chinese and US leaders</a>,&nbsp;expectations&nbsp;for progress toward ending the trade war are&nbsp;low&nbsp;and sources say there has been little preparation for a meeting even as the health of the world economy is at stake.

President Donald&nbsp;Trump&nbsp;says he wants to meet with President&nbsp;Xi&nbsp;Jinping at the June 28-29 G20 summit in Osaka, Japan and will decide on whether to extend tariffs to almost all Chinese imports after that.

Though neither side has confirmed that a meeting will take place, investors worldwide who have seen over a trillion dollars wiped from global markets in the past month by the trade fight will be closely watching any interaction between the two men.

Relations have deteriorated since May when negotiations to end the US-Chinese trade disputes broke down, all but killing off the possibility of an agreement in Japan.

"The atmosphere is poisonous," one senior Beijing-based Western diplomat told Reuters, referring to China-US ties.

Sources familiar with the matter, including officials and diplomats in Washington and Beijing, say there has been a lack of preparatory work for the meeting, due largely to the increasing acrimony. The trade negotiating teams have not met since&nbsp;talks&nbsp;ended in stalemate on May 10.

The White House declined to comment on plans for a&nbsp;Trump-Xi&nbsp;meeting.

"Preparations&nbsp;for the G20 summit in Japan are ongoing. We have nothing to announce at this time regarding specific bilateral meetings," White House National Security Council spokesman Garrett Marquis.

White House economic adviser Larry Kudlow&nbsp;told CNBC on Tuesday that&nbsp;Trump&nbsp;is hoping to "pick up where we left off" in the&nbsp;talks&nbsp;with&nbsp;Xi.

Trump&nbsp;said again on Monday that he expected the meeting to happen, and threatened more tariffs on Chinese imports if there is not enough progress or if&nbsp;Xi&nbsp;does not attend.

China is open to more trade&nbsp;talks&nbsp;but has nothing to announce about a possible meeting between the two leaders, Foreign Ministry spokesman Geng Shuang said on Monday. He said on Tuesday that China would "fight to the end" if Washington escalates trade fictions.

Sources said the two leaders are likely to have some kind of meeting but whatever happens in Osaka, it will be a downgrade from the possibility both sides feted just two months ago - when they hoped the&nbsp;talks&nbsp;would be the scene for the two presidents to sign a historic trade deal.

A senior Chinese official told US business representatives last week that&nbsp;preparations&nbsp;had yet to begin for either a&nbsp;Trump-Xi&nbsp;meeting or to resume trade negotiations, a source with direct knowledge of the briefing said.

On the US side in recent years, the lack of preparation for a big meeting is not that unusual.&nbsp;Trump&nbsp;often attends important&nbsp;talks&nbsp;with little advance work and makes policy on the fly.

Xi&nbsp;may not even want to go into such a high profile meeting with an unpredictable outcome and facing the threat of more US tariffs on Chinese goods.

"For China, it's all about the protocol for&nbsp;Xi&nbsp;and making sure he is respected," said an Asian diplomat. "China will not want&nbsp;Xi to go into a meeting where he may be embarrassed."

Low Expectations

Eswar Prasad, a trade professor at Cornell University and a former head of the China department at the International Monetary Fund, said&nbsp;expectations&nbsp;from any&nbsp;talks&nbsp;were&nbsp;low.

"The best-case outcome from a&nbsp;Trump-Xi&nbsp;meeting, which seems a dubious proposition at this stage, would be an agreement for the two sides to resume&nbsp;talks," said Prasad, who is in touch with Chinese officials. "The prospects for even a temporary and&nbsp;limited&nbsp;ceasefire have dissipated and a prolonged period of trade and broader economic tensions between the two countries seems on the cards."

If&nbsp;talks&nbsp;go badly, both sides could raise tariffs on each other,&nbsp;Trump&nbsp;could withdraw licenses for firms trading with Chinese telecommunications giant Huawei, and China might ban exports of rare earth supplies vital for high-tech products as well as take measures against US companies in China.

Trade negotiations broke down in May and the two sides raised tariffs on hundreds of billions of dollars of each other's imports.

Trump&nbsp;accused Beijing of reneging on promises to meet US demands to extend the protection of intellectual property, end state-sponsored cyber theft, open more markets to US firms, and reduce industrial subsidies.

China has said US demands are so extensive that they violate its sovereignty.

A source with ties to China's leadership said there was deep anger in the government and party about&nbsp;Trump's accusations of China backsliding, especially as Beijing thought it was on the verge of a deal.

The source likened the US response to the feeling of being jilted at the altar.

"You don't promise to marry someone and then back out at the last minute," the source, who meets regularly with senior officials, told Reuters.

Xi&nbsp;and&nbsp;Trump&nbsp;met last year in Buenos Aires and broke a prior impasse in trade&nbsp;talks.

The US Treasury Secretary Steven Mnuchin drew parallels between the planned Osaka meeting and that encounter, telling Reuters that the pace of&nbsp;preparations&nbsp;for both meetings was similar.

But, unlike the current uncertainty over plans for the meeting in Japan, the White House confirmed the Argentina&nbsp;talks&nbsp;were taking place as early as six weeks in advance.

The US-China tension has gone beyond tariffs. The United States has sanctioned Huawei, sent its navy into the disputed South China Sea and Taiwan Strait, and made other public shows of support for self-ruled Taiwan.

The strains between Washington and Beijing are expected to make it difficult for diplomats to agree on the language of the G20 statement issued at the end of the summit.

Host country Japan and European Union countries are working with the United States on new World Trade Organization rules aimed at reining in "non market-oriented policies" including industrial subsidies, rules clearly aimed at China.

Beijing is expected to resist language in the statement that the United States may subsequently use against China in trade&nbsp;talks.

With under three weeks to go before proposed talks between the Chinese and US leaders, expectations for progress toward ending the trade war are low and sources say there has been little preparation for a meeting even as the health of the world economy is at stake.

With under three weeks to go before proposed talks between the Chinese and US leaders, expectations for progress toward ending the trade war are low and sources say there has been little preparation for a meeting even as the health of the world economy is at stake. President Donald Trump says he wants to meet with President Xi Jinping at the June 28-29 G20 summit in Osaka, Japan and will decide on whether to extend tariffs to almost all Chinese imports after that. Though neither side has confirmed that a meeting will take place, investors worldwide who have seen over a trillion dollars wiped from global markets in the past month by the trade fight will be closely watching any interaction between the two men. Relations have deteriorated since May when negotiations to end the US-Chinese trade disputes broke down, all but killing off the possibility of an agreement in Japan. "The atmosphere is poisonous," one senior Beijing-based Western diplomat told Reuters, referring to China-US ties. Sources familiar with the matter, including officials and diplomats in Washington and Beijing, say there has been a lack of preparatory work for the meeting, due largely to the increasing acrimony. The trade negotiating teams have not met since talks ended in stalemate on May 10. The White House declined to comment on plans for a Trump-Xi meeting. "Preparations for the G20 summit in Japan are ongoing. We have nothing to announce at this time regarding specific bilateral meetings," White House National Security Council spokesman Garrett Marquis. White House economic adviser Larry Kudlow told CNBC on Tuesday that Trump is hoping to "pick up where we left off" in the talks with Xi. Trump said again on Monday that he expected the meeting to happen, and threatened more tariffs on Chinese imports if there is not enough progress or if Xi does not attend. China is open to more trade talks but has nothing to announce about a possible meeting between the two leaders, Foreign Ministry spokesman Geng Shuang said on Monday. He said on Tuesday that China would "fight to the end" if Washington escalates trade fictions. Sources said the two leaders are likely to have some kind of meeting but whatever happens in Osaka, it will be a downgrade from the possibility both sides feted just two months ago - when they hoped the talks would be the scene for the two presidents to sign a historic trade deal. A senior Chinese official told US business representatives last week that preparations had yet to begin for either a Trump-Xi meeting or to resume trade negotiations, a source with direct knowledge of the briefing said. On the US side in recent years, the lack of preparation for a big meeting is not that unusual. Trump often attends important talks with little advance work and makes policy on the fly. Xi may not even want to go into such a high profile meeting with an unpredictable outcome and facing the threat of more US tariffs on Chinese goods. "For China, it's all about the protocol for Xi and making sure he is respected," said an Asian diplomat. "China will not want Xi to go into a meeting where he may be embarrassed." Low Expectations Eswar Prasad, a trade professor at Cornell University and a former head of the China department at the International Monetary Fund, said expectations from any talks were low. "The best-case outcome from a Trump-Xi meeting, which seems a dubious proposition at this stage, would be an agreement for the two sides to resume talks," said Prasad, who is in touch with Chinese officials. "The prospects for even a temporary and limited ceasefire have dissipated and a prolonged period of trade and broader economic tensions between the two countries seems on the cards." If talks go badly, both sides could raise tariffs on each other, Trump could withdraw licenses for firms trading with Chinese telecommunications giant Huawei, and China might ban exports of rare earth supplies vital for high-tech products as well as take measures against US companies in China. Trade negotiations broke down in May and the two sides raised tariffs on hundreds of billions of dollars of each other's imports. Trump accused Beijing of reneging on promises to meet US demands to extend the protection of intellectual property, end state-sponsored cyber theft, open more markets to US firms, and reduce industrial subsidies. China has said US demands are so extensive that they violate its sovereignty. A source with ties to China's leadership said there was deep anger in the government and party about Trump's accusations of China backsliding, especially as Beijing thought it was on the verge of a deal. The source likened the US response to the feeling of being jilted at the altar. "You don't promise to marry someone and then back out at the last minute," the source, who meets regularly with senior officials, told Reuters. Xi and Trump met last year in Buenos Aires and broke a prior impasse in trade talks. The US Treasury Secretary Steven Mnuchin drew parallels between the planned Osaka meeting and that encounter, telling Reuters that the pace of preparations for both meetings was similar. But, unlike the current uncertainty over plans for the meeting in Japan, the White House confirmed the Argentina talks were taking place as early as six weeks in advance. The US-China tension has gone beyond tariffs. The United States has sanctioned Huawei, sent its navy into the disputed South China Sea and Taiwan Strait, and made other public shows of support for self-ruled Taiwan. The strains between Washington and Beijing are expected to make it difficult for diplomats to agree on the language of the G20 statement issued at the end of the summit. Host country Japan and European Union countries are working with the United States on new World Trade Organization rules aimed at reining in "non market-oriented policies" including industrial subsidies, rules clearly aimed at China. Beijing is expected to resist language in the statement that the United States may subsequently use against China in trade talks.

Expectations low for Trump-Xi talks, preparations limited

US President Donald Trump said China will be left with no other option but to enter into a <a href="https://www.wionews.com/world/will-slap-huge-new-tariffs-on-china-if-president-xi-doesnt-show-up-trump-ahead-of-g20-meeting-226081">trade deal with the United States</a> because his increased tariffs on Chinese products is having an impact on its economy.

"The China deal is going to work out. You know why, because of tariffs, because right now <a href="https://www.wionews.com/business-economy/china-exports-grow-despite-us-tariffs-but-import-slump-most-in-nearly-three-years-225842">China is getting absolutely</a> decimated by companies that are leaving China going to other countries, including our own, because they don't want to pay the tariffs," Trump told CBS news in an interview.

In recent months, Trump has imposed additional tariffs on Chinese products worth $200 billion and he has ordered for another round of tariffs on rest of the Chinese imports amounting to $300 billion.

"And China will, in my opinion, based on a lot of facts and a lot of knowledge, China is going to make a deal because they're going to have to make a deal," he said.

"China will subsidise their product because they want to keep people working. So China is going to pay a lot. We have put 25 percent on $250 billion of Chinese goods coming into our country, including $50 billion of high-technology equipment and things," he said.

"You haven't seen any or virtually any price increase because what China does basically their companies - they subsidise their companies because they want to keep people working. They want to stay competitive. We have another $300 billion to go with China," he said.

"I haven't done that because it's a very big thing for them, not for us. For us it's not going to matter because we'll be able to buy the product in other countries that don't have the tariffs. So it's not going to have an effect,"&nbsp;said the US president.

Later in the day, Trump told reporters that he will meet Chinese President Xi Jinping in Japan later this month on the sidelines of the G-20 Summit. Some reports say that Xi might skip the G-20 summit.

"I think President Xi of China -- great relationship with him -- I think he'll be there. We are scheduled to talk and to meet. I think interesting things will happen. Let's see what happens," he said in response to a question.

"Right now, we're getting 25 per cent on $250 billion worth of goods. That's a lot of money that's pouring into our Treasury. We've never gotten 10 cents from China. Now we're getting a lot of money from China. I think that's one of the reasons that GDP was so high in the first quarter, because of the tariffs that we've taken in from China," he said.

"We always have the option to raise it another $300 billion at 25 per cent. And the 25 per cent could be much higher than 25 per cent," he asserted.

US President Donald Trump said China will be left with no other option but to enter into a trade deal with the United States because his increased tariffs on Chinese products is having an impact on its economy.

US President Donald Trump said China will be left with no other option but to enter into a trade deal with the United States because his increased tariffs on Chinese products is having an impact on its economy. "The China deal is going to work out. You know why, because of tariffs, because right now China is getting absolutely decimated by companies that are leaving China going to other countries, including our own, because they don't want to pay the tariffs," Trump told CBS news in an interview. In recent months, Trump has imposed additional tariffs on Chinese products worth $200 billion and he has ordered for another round of tariffs on rest of the Chinese imports amounting to $300 billion. "And China will, in my opinion, based on a lot of facts and a lot of knowledge, China is going to make a deal because they're going to have to make a deal," he said. "China will subsidise their product because they want to keep people working. So China is going to pay a lot. We have put 25 percent on $250 billion of Chinese goods coming into our country, including $50 billion of high-technology equipment and things," he said. "You haven't seen any or virtually any price increase because what China does basically their companies - they subsidise their companies because they want to keep people working. They want to stay competitive. We have another $300 billion to go with China," he said. "I haven't done that because it's a very big thing for them, not for us. For us it's not going to matter because we'll be able to buy the product in other countries that don't have the tariffs. So it's not going to have an effect," said the US president. Later in the day, Trump told reporters that he will meet Chinese President Xi Jinping in Japan later this month on the sidelines of the G-20 Summit. Some reports say that Xi might skip the G-20 summit. "I think President Xi of China -- great relationship with him -- I think he'll be there. We are scheduled to talk and to meet. I think interesting things will happen. Let's see what happens," he said in response to a question. "Right now, we're getting 25 per cent on $250 billion worth of goods. That's a lot of money that's pouring into our Treasury. We've never gotten 10 cents from China. Now we're getting a lot of money from China. I think that's one of the reasons that GDP was so high in the first quarter, because of the tariffs that we've taken in from China," he said. "We always have the option to raise it another $300 billion at 25 per cent. And the 25 per cent could be much higher than 25 per cent," he asserted.

China getting decimated because companies leaving them: Trump

US President Donald Trump said that even though<a href="https://www.wionews.com/world/tariff-king-india-wants-trade-talks-us-immediately-says-trump-168847"> India has reduced its import tariff </a>on American motorcycles from 100 per cent to 50 per cent, it is still too high and not acceptable to him.

Trump said the United States, under his leadership, is a country that can no longer be fooled.

"We're not the foolish country that does so badly. You look at India, very good friend of mine, Prime Minister (Narendra) Modi, you take a look at what they've done, 100 per cent tax on a motorcycle. We charge them nothing," Trump told CBS news in an interview on Monday.&nbsp;

Trump was referring to the import tariff on the<a href="https://www.wionews.com/india-news/india-certainly-not-a-tariff-king-says-world-bank-official-on-donald-trumps-remarks-174726"> Harley Davidson motorcycles</a>, an issue that has been close to his heart and wants India to reduce it to zero.

"So, when Harley sends over there, they have 100 per cent tax. When they (India) send in,&nbsp;they make a tremendous number of motorcycles,&nbsp;&nbsp;when they send them in, no tax. I called him. I said it's unacceptable,"&nbsp;Trump said, referring to his conversation with Prime Minister Modi.

"He (Modi) reduced it by 50 per cent with one phone call. I said it's still unacceptable because it's 50 per cent versus nothing. It's still unacceptable. And they're working on it," he said, indicating that the two countries are still in talks to resolve the issue of import tariffs on American motorcycles.

"But if I didn't, if we didn't have the power of what we have, and if we weren't the bank - well, if we weren't the bank we wouldn't even be talking about it because nobody would care. But we're the bank that everybody wants to rob, and that's what they've been doing for a long period of time. $800 billion we have in trade deficits with other countries. So you tell me who made those deals,"&nbsp;he said in response to a question.

US President Donald Trump said that even though India has reduced its import tariff on American motorcycles from 100 per cent to 50 per cent, it is still too high and not acceptable to him.

US President Donald Trump said that even though India has reduced its import tariff on American motorcycles from 100 per cent to 50 per cent, it is still too high and not acceptable to him. Trump said the United States, under his leadership, is a country that can no longer be fooled. "We're not the foolish country that does so badly. You look at India, very good friend of mine, Prime Minister (Narendra) Modi, you take a look at what they've done, 100 per cent tax on a motorcycle. We charge them nothing," Trump told CBS news in an interview on Monday. Trump was referring to the import tariff on the Harley Davidson motorcycles, an issue that has been close to his heart and wants India to reduce it to zero. "So, when Harley sends over there, they have 100 per cent tax. When they (India) send in, they make a tremendous number of motorcycles, when they send them in, no tax. I called him. I said it's unacceptable," Trump said, referring to his conversation with Prime Minister Modi. "He (Modi) reduced it by 50 per cent with one phone call. I said it's still unacceptable because it's 50 per cent versus nothing. It's still unacceptable. And they're working on it," he said, indicating that the two countries are still in talks to resolve the issue of import tariffs on American motorcycles. "But if I didn't, if we didn't have the power of what we have, and if we weren't the bank - well, if we weren't the bank we wouldn't even be talking about it because nobody would care. But we're the bank that everybody wants to rob, and that's what they've been doing for a long period of time. $800 billion we have in trade deficits with other countries. So you tell me who made those deals," he said in response to a question.

Modi reduced tariffs on Harley Davidson motorcycles by 50%, I said it was still unacceptable: Trump

Vietnam&nbsp;has said it will crack down on goods of Chinese origin illegally relabelled "Made in&nbsp;Vietnam" by exporters seeking to avoid the United States. President Donald Trump's tariffs on Chinese imports.

Vietnamese customs have found scores of such cases amid the ongoing United States-China&nbsp;<a href="https://www.wionews.com/business-economy/g20-says-worsening-trade-wars-pose-risk-to-world-economy-225664">trade&nbsp;dispute</a>, the department said in a statement posted to a government website on Sunday.

"The faking of origin and the illegal transhipment of goods happens most often in the sectors of textiles, seafood, agricultural products, tiles, honey, steel and iron, aluminium and timber products," the department said in the statement.

Some importers had been illegally re-packing goods from&nbsp;China&nbsp;in "Made in&nbsp;Vietnam" packaging and then applying for a&nbsp;Vietnamese certificate of origin with which to export to the United States, Europe and Japan,&nbsp;Vietnam&nbsp;customs said.

In one such example, which the statement said was uncovered by United States&nbsp;customs, a&nbsp;Vietnam-based manufacturer of timber products was found to have been importing Chinese timber which it then relabelled and exported to the United States.

Vietnam's customs department is developing a process to better identify and impose penalties on businesses which carry out such violations, the statement said.

Vietnam&nbsp;has emerged as one of the largest beneficiaries of the&nbsp;trade&nbsp;war between Beijing and Washington as some businesses are shifting their supply chains away from&nbsp;China&nbsp;in order to avoid tariffs. An analysis of&nbsp;trade&nbsp;data by Japan's Nomura Holdings Inc earlier this month showed&nbsp;Vietnam&nbsp;had easily benefited more than other countries.

The Southeast Asian country relies heavily on&nbsp;China&nbsp;for materials and equipment for its labour-intensive manufacturing. Meanwhile, the United States is its largest export market.

Foreign minister Pham Binh Minh said in a speech to&nbsp;Vietnam's national assembly last week that the government has created a steering committee in response to the&nbsp;trade&nbsp;war.

Vietnam has said it will crack down on goods of Chinese origin illegally relabelled "Made in Vietnam" by exporters seeking to avoid the United States. President Donald Trump's tariffs on Chinese imports.

Vietnam has said it will crack down on goods of Chinese origin illegally relabelled "Made in Vietnam" by exporters seeking to avoid the United States. President Donald Trump's tariffs on Chinese imports. Vietnamese customs have found scores of such cases amid the ongoing United States-China trade dispute, the department said in a statement posted to a government website on Sunday. "The faking of origin and the illegal transhipment of goods happens most often in the sectors of textiles, seafood, agricultural products, tiles, honey, steel and iron, aluminium and timber products," the department said in the statement. Some importers had been illegally re-packing goods from China in "Made in Vietnam" packaging and then applying for a Vietnamese certificate of origin with which to export to the United States, Europe and Japan, Vietnam customs said. In one such example, which the statement said was uncovered by United States customs, a Vietnam-based manufacturer of timber products was found to have been importing Chinese timber which it then relabelled and exported to the United States. Vietnam's customs department is developing a process to better identify and impose penalties on businesses which carry out such violations, the statement said. Vietnam has emerged as one of the largest beneficiaries of the trade war between Beijing and Washington as some businesses are shifting their supply chains away from China in order to avoid tariffs. An analysis of trade data by Japan's Nomura Holdings Inc earlier this month showed Vietnam had easily benefited more than other countries. The Southeast Asian country relies heavily on China for materials and equipment for its labour-intensive manufacturing. Meanwhile, the United States is its largest export market. Foreign minister Pham Binh Minh said in a speech to Vietnam's national assembly last week that the government has created a steering committee in response to the trade war.

Vietnam to crackdown on Chinese goods relabelled to beat United States tariffs

Widening fallout from the US-China trade war and escalating tariff threats will test the resolve of Group of 20 finance leaders to show a united front this week, as investors worry if they can avert a global recession with dwindling policy ammunition.

Japan, which is chairing this year's G20 meetings, has said the finance leaders' meeting won't put trade issues high on the agenda and will not seek to mediate bilateral trade tensions.

But the broadening pain from the trade war will make it hard for G20 finance ministers and central bank heads to side-step the topic when they gather for a two-day meeting starting on Saturday in the southern Japan city of Fukuoka.

A senior US&nbsp;Treasury official said trade will be one of the topics of the meeting, both in the context on how it affects the global economy and how to "reduce some of the unfair trade practices that may exist."

Tensions over trade could heighten challenges for G20 finance leaders to seek common ground on how to frame the issue in a communique expected to be released after their gathering.

"The communique is always fun to do, so I anticipate we'll have some interesting conversations on trade, as well as other issues. And I expect we'll likely get to a communique, but you never know," the official told reporters earlier this week.

US&nbsp;Treasury Secretary Steven Mnuchin will meet People's Bank of China Governor Yi Gang in Fukuoka on the sidelines of the G20 gathering. Mnuchin will also hold talks with Japanese Finance Minister Taro Aso.

TRADE DAMAGE WIDENING

Relations between the United States and China have deteriorated since President Donald Trump in early May accused Beijing of reneging on commitments to change its ways of doing business with the rest of the world.

The US&nbsp;raised tariffs on Chinese imports and threatened new ones, and China retaliated. The escalation has rattled global financial markets and wiped out more than $1.5 trillion in investments worldwide, stoking fears of a global downturn.

Trump said on Thursday he would meet President Xi Jinping at a G20 leaders' summit late this month and decide afterwards whether to hit Beijing with more tariffs.

With much of the world economy still recovering from the global financial crisis a decade ago, the focus is shifting to how much dry powder central banks have left to battle the next downturn.

US&nbsp;Federal Reserve policymakers have hinted they would be ready to cut interest rates and the European Central Bank on Thursday opened the door to more stimulus if needed.

The International Monetary Fund on Wednesday warned that current and threatened US-China tariffs could cut global economic output by 0.5 per cent&nbsp;in 2020.

IMF Managing Director Christine Lagarde told Reuters that while there was no imminent threat of a global recession, such tariff threats and trade wars were "self-inflicted wounds" that must be avoided.

While the G20 communique is set to maintain the view that global growth will pick up through next year, some policymakers may flag growing risks when they speak on the sidelines of the meeting.

"There's not much the G20 can do to ease Sino-US&nbsp;trade tensions because Washington doesn't see benefit in fixing problems under a multilateral framework," said Takahide Kiuchi, a former Bank of Japan board member who is now an executive economist at Nomura Research Institute.

"If the G20 finance leaders can't talk about trade, it means they can't engage in substantial debate on the most imminent threat to the global economy."

Widening fallout from the US-China trade war and escalating tariff threats will test the resolve of Group of 20 finance leaders to show a united front this week, as investors worry if they can avert a global recession with dwindling policy ammunition.

Widening fallout from the US-China trade war and escalating tariff threats will test the resolve of Group of 20 finance leaders to show a united front this week, as investors worry if they can avert a global recession with dwindling policy ammunition. Japan, which is chairing this year's G20 meetings, has said the finance leaders' meeting won't put trade issues high on the agenda and will not seek to mediate bilateral trade tensions. But the broadening pain from the trade war will make it hard for G20 finance ministers and central bank heads to side-step the topic when they gather for a two-day meeting starting on Saturday in the southern Japan city of Fukuoka. A senior US Treasury official said trade will be one of the topics of the meeting, both in the context on how it affects the global economy and how to "reduce some of the unfair trade practices that may exist." Tensions over trade could heighten challenges for G20 finance leaders to seek common ground on how to frame the issue in a communique expected to be released after their gathering. "The communique is always fun to do, so I anticipate we'll have some interesting conversations on trade, as well as other issues. And I expect we'll likely get to a communique, but you never know," the official told reporters earlier this week. US Treasury Secretary Steven Mnuchin will meet People's Bank of China Governor Yi Gang in Fukuoka on the sidelines of the G20 gathering. Mnuchin will also hold talks with Japanese Finance Minister Taro Aso. TRADE DAMAGE WIDENING Relations between the United States and China have deteriorated since President Donald Trump in early May accused Beijing of reneging on commitments to change its ways of doing business with the rest of the world. The US raised tariffs on Chinese imports and threatened new ones, and China retaliated. The escalation has rattled global financial markets and wiped out more than $1.5 trillion in investments worldwide, stoking fears of a global downturn. Trump said on Thursday he would meet President Xi Jinping at a G20 leaders' summit late this month and decide afterwards whether to hit Beijing with more tariffs. With much of the world economy still recovering from the global financial crisis a decade ago, the focus is shifting to how much dry powder central banks have left to battle the next downturn. US Federal Reserve policymakers have hinted they would be ready to cut interest rates and the European Central Bank on Thursday opened the door to more stimulus if needed. The International Monetary Fund on Wednesday warned that current and threatened US-China tariffs could cut global economic output by 0.5 per cent in 2020. IMF Managing Director Christine Lagarde told Reuters that while there was no imminent threat of a global recession, such tariff threats and trade wars were "self-inflicted wounds" that must be avoided. While the G20 communique is set to maintain the view that global growth will pick up through next year, some policymakers may flag growing risks when they speak on the sidelines of the meeting. "There's not much the G20 can do to ease Sino-US trade tensions because Washington doesn't see benefit in fixing problems under a multilateral framework," said Takahide Kiuchi, a former Bank of Japan board member who is now an executive economist at Nomura Research Institute. "If the G20 finance leaders can't talk about trade, it means they can't engage in substantial debate on the most imminent threat to the global economy."

Trade war, tariff threats to challenge G20 finance leaders' solidarity

As of June 5, perhaps as part of his trade war, US President Trump ended the Generalised System of Preferences (GSP) for India. The GSP has been around since the mid-1970s and aims to help the “World’s poorest countries to use trade to grow their economies and climb out of poverty.” India has two options. First, it can appeal the withdrawal to the World Trade Organisation.&nbsp; 
 
Second, India can simply wait; the US has re-instated the GSP in the past (case in point, Argentina, 2018). However, the decision to end the GSP is actually a great compliment towards India.&nbsp;

The nation should not go to the WTO or appeal the decision in any way. There are two major reasons for PM Narendra Modi’s ‘cool as a cucumber,’ indifferent attitude towards taking away the GSP. &nbsp;&nbsp;

First, India’s massive market is something that America just cannot look away from and do without. The USA needs to have access to India’s population. India currently carries 1.3 billion people and, more significantly, carries one of the strongest, most vibrant workforces in the world (over 65 per cent under the age of 35 years old). This is a goldmine for employability for American MNCs now present in India like Walmart, Facebook, Google, etc.&nbsp;

The list also includes future superstar MNCs like Netflix and Uber. When these companies first came to India, it was PM Modi that worked efficiently and placed regulations for business. This prevented companies from being too bullish and operating with too much autonomy in India. While foreign leaders were not happy with this, it did not really make much if a difference in terms of companies still pursuing business in India. Case In point, Apple. Despite restrictions hurting Apple phone sales, CEO Cook remains extremely bullish in India, still aggressively penetrating the Indian market. Similarly, it is not likely that MNCs are going anywhere no matter how stringent regulations are. &nbsp; &nbsp;

Second, India has garnered top levels of foreign direct investment with America being a heavy investor. Just recently, Goldman Sachs CEO David Solomon expressed confidence in the Indian market due to Modi returning and the accelerating pace of NDA reforms. Many foreign firms carry the same sentiment. These investors will continue to be involved in India’s rewarding market. The Modi 1.0 government saw record-high FDI levels which will continue to rise over the next five years. And FDI is not the only thing the USA wants to keep engagement in India with.&nbsp;

Just hours after the GSP was taken away, there was a statement by the USA: American plans on increasing the ‘scope, complexity and frequency of military engagement with India.’&nbsp;

The USA considers India a ‘major defence partner’ which has facilitated greater interoperability and information spending over the past few years. This is strategic for the Indian economy in multiple ways: it brings employment, technological development, research, strategy and innovation to name a few. Thus, the impact caused by taking away GSP will be offset by this engagement. &nbsp;

What is the real impact on&nbsp;India’s economy by the move? Out of about $36 billion worth of exports by India to the USA, $5.7 billion worth of exports are affected, or just about 15.83 per cent. Many Indian experts are expecting that the USA will likely reinstate the GSP because the products that are exported will be hard to replace with India’s competitive advantage: items like natural pearls, pharmaceuticals and machinery. Furthermore, even if the GSP does not get reinstated, it is not really a concern. India is steadily turning into a global manufacturing hub via reforms during the Modi 1.0 and now 2.0 government. For these reason along with reducing costs and diversifying, hundreds of US companies are looking to move their manufacturing bases from China to India. Likewise, the Modi 2.0 government is looking to export in new markets. All of these actions will offset any loss created by eliminating GSP. Lower crude oil prices will also minimise the blow. &nbsp;

The root reason why the GSP has been taken away is because Trump is frustrated at India’s regulatory restrictions that were placed by PM Modi during his first term. Otherwise, American firms would bully India by running unregulated and autonomous in the market which would fatally impact India’s economy at a crucial point. &nbsp;

What’s the best way to treat a bully? Indifference. Schoolyard taunts are not meant to get a response. India has spoken maturely on this matter and asked for a dialogue to reach mutual terms. If not, no biggie. India has stated that the two nations will continue to work together regardless.

With this unruffled response, India has shown its new strength and place as a frontrunner on the international stage. It is no longer a nation that can be bullied. Rather, it is a strong, stabilising economy that is expanding its domestic sectors and fostering lucrative international engagement through positive development. And with a strong, abled, young, dynamic workforce driving innovation and setting higher standards for New India, the nation’s economy is most definitely ‘the new place to be.’ It’s about time that the USA gets this message. Otherwise, their loss. &nbsp;

&nbsp;(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

&nbsp;

As of June 5, perhaps as part of his trade war, US President Trump ended the Generalised System of Preferences (GSP) for India. The GSP has been around since the mid-1970s and aims to help the “World’s poorest countries to use trade to grow their economies and climb out of poverty.

As of June 5, perhaps as part of his trade war, US President Trump ended the Generalised System of Preferences (GSP) for India. The GSP has been around since the mid-1970s and aims to help the “World’s poorest countries to use trade to grow their economies and climb out of poverty.” India has two options. First, it can appeal the withdrawal to the World Trade Organisation. Second, India can simply wait; the US has re-instated the GSP in the past (case in point, Argentina, 2018). However, the decision to end the GSP is actually a great compliment towards India. The nation should not go to the WTO or appeal the decision in any way. There are two major reasons for PM Narendra Modi’s ‘cool as a cucumber,’ indifferent attitude towards taking away the GSP. First, India’s massive market is something that America just cannot look away from and do without. The USA needs to have access to India’s population. India currently carries 1.3 billion people and, more significantly, carries one of the strongest, most vibrant workforces in the world (over 65 per cent under the age of 35 years old). This is a goldmine for employability for American MNCs now present in India like Walmart, Facebook, Google, etc. The list also includes future superstar MNCs like Netflix and Uber. When these companies first came to India, it was PM Modi that worked efficiently and placed regulations for business. This prevented companies from being too bullish and operating with too much autonomy in India. While foreign leaders were not happy with this, it did not really make much if a difference in terms of companies still pursuing business in India. Case In point, Apple. Despite restrictions hurting Apple phone sales, CEO Cook remains extremely bullish in India, still aggressively penetrating the Indian market. Similarly, it is not likely that MNCs are going anywhere no matter how stringent regulations are. Second, India has garnered top levels of foreign direct investment with America being a heavy investor. Just recently, Goldman Sachs CEO David Solomon expressed confidence in the Indian market due to Modi returning and the accelerating pace of NDA reforms. Many foreign firms carry the same sentiment. These investors will continue to be involved in India’s rewarding market. The Modi 1.0 government saw record-high FDI levels which will continue to rise over the next five years. And FDI is not the only thing the USA wants to keep engagement in India with. Just hours after the GSP was taken away, there was a statement by the USA: American plans on increasing the ‘scope, complexity and frequency of military engagement with India.’ The USA considers India a ‘major defence partner’ which has facilitated greater interoperability and information spending over the past few years. This is strategic for the Indian economy in multiple ways: it brings employment, technological development, research, strategy and innovation to name a few. Thus, the impact caused by taking away GSP will be offset by this engagement. What is the real impact on India’s economy by the move? Out of about $36 billion worth of exports by India to the USA, $5.7 billion worth of exports are affected, or just about 15.83 per cent. Many Indian experts are expecting that the USA will likely reinstate the GSP because the products that are exported will be hard to replace with India’s competitive advantage: items like natural pearls, pharmaceuticals and machinery. Furthermore, even if the GSP does not get reinstated, it is not really a concern. India is steadily turning into a global manufacturing hub via reforms during the Modi 1.0 and now 2.0 government. For these reason along with reducing costs and diversifying, hundreds of US companies are looking to move their manufacturing bases from China to India. Likewise, the Modi 2.0 government is looking to export in new markets. All of these actions will offset any loss created by eliminating GSP. Lower crude oil prices will also minimise the blow. The root reason why the GSP has been taken away is because Trump is frustrated at India’s regulatory restrictions that were placed by PM Modi during his first term. Otherwise, American firms would bully India by running unregulated and autonomous in the market which would fatally impact India’s economy at a crucial point. What’s the best way to treat a bully? Indifference. Schoolyard taunts are not meant to get a response. India has spoken maturely on this matter and asked for a dialogue to reach mutual terms. If not, no biggie. India has stated that the two nations will continue to work together regardless. With this unruffled response, India has shown its new strength and place as a frontrunner on the international stage. It is no longer a nation that can be bullied. Rather, it is a strong, stabilising economy that is expanding its domestic sectors and fostering lucrative international engagement through positive development. And with a strong, abled, young, dynamic workforce driving innovation and setting higher standards for New India, the nation’s economy is most definitely ‘the new place to be.’ It’s about time that the USA gets this message. Otherwise, their loss. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

India's indifference to the US on GSP is the perfect response

China's Huawei, considered a <a href="https://www.wionews.com/world/huawei-willing-to-sign-no-spy-agreement-with-us-government-chairman-224403">security threat in the US</a>, &nbsp;on Wednesday signed a deal with Russian telecoms company MTS to develop a 5G network in the country over the next year,

The agreement was signed on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow.&nbsp;

The deal will see "the development of 5G technologies and the pilot launch of fifth generation networks in 2019-2020", MTS said in a statement.

Quoted in the statement, <a href="https://www.wionews.com/world/huawei-row-no-privacy-if-switzerland-uses-chinese-technology-warns-pompeo-224163">Huawei's Guo Ping&nbsp;said</a> he was "very happy" with the agreement "in an area of strategic importance like 5G".

The Chinese telecom giant has been in turmoil since May, when the Trump administration banned US companies from selling high-tech equipment to Huawei over suspicions it is spying for Beijing.

Experts say the US decision, to come into force within three months, threatens the survival of the company, which is highly dependent on US chips for its phones.&nbsp;

Several companies have already distanced themselves from Huawei, including Google, whose Android system equips the vast majority of smartphones in the world.

Huawei's reported potential involvement in Britain's 5G network has proved politically sensitive and Theresa May's government insists no decision has been made on the issue.

China's Huawei, considered a security threat in the US, on Wednesday signed a deal with Russian telecoms company MTS to develop a 5G network in the country over the next year, The agreement was signed on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow.

China's Huawei, considered a security threat in the US, on Wednesday signed a deal with Russian telecoms company MTS to develop a 5G network in the country over the next year, The agreement was signed on the sidelines of a meeting between Chinese leader Xi Jinping and Russian President Vladimir Putin in Moscow. The deal will see "the development of 5G technologies and the pilot launch of fifth generation networks in 2019-2020", MTS said in a statement. Quoted in the statement, Huawei's Guo Ping said he was "very happy" with the agreement "in an area of strategic importance like 5G". The Chinese telecom giant has been in turmoil since May, when the Trump administration banned US companies from selling high-tech equipment to Huawei over suspicions it is spying for Beijing. Experts say the US decision, to come into force within three months, threatens the survival of the company, which is highly dependent on US chips for its phones. Several companies have already distanced themselves from Huawei, including Google, whose Android system equips the vast majority of smartphones in the world. Huawei's reported potential involvement in Britain's 5G network has proved politically sensitive and Theresa May's government insists no decision has been made on the issue.

Amid US-China row, Huawei signs with Russian telecom company MTS to develop 5G network

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground.

Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports.&nbsp;

Chinese state media has warned that Beijing could use rare earths for its next strike in the trade war. The United States relies on China for supplies of the rare earths to make a host of high-tech products, from satellites to electric car batteries.&nbsp;

Here are some other possible pressure points for each side.

POTENTIAL CHINESE RESPONSES 
HIKING TARIFFS FURTHER&nbsp;

China could impose tariffs on around $10 billion of US goods that as yet carry no retaliatory tariffs.&nbsp;

Beijing removed some tariffs on US car imports in December, and could reimpose them.

China could raise tariffs from 25 per cent on some US goods such as soybeans. China was the top US buyer of soybeans until the trade war, which came close to halting the flow altogether. If it raises tariffs again, Chinese soy importers will seek more supplies from Brazil and elsewhere, as they did in 2018, which would hurt US farmers. These are targeted tariffs, aimed at the US farming community that supported Trump`s 2016 presidential election victory.

High-tech items, such as semi-conductor manufacturing equipment and chips, would be unlikely to feature on a list for higher tariffs, because China cannot easily find alternatives.

China has so far spared Boeing passenger jets, its single most valuable US import, from tariffs. Chinese carriers are expanding rapidly to meet rising demand, so tariffs on Boeing could slow development of the domestic travel industry.

China could buy more aircraft from France`s Airbus instead of Boeing, which would make it more reliant on Europe for a few years until it completes development of homegrown commercial aircraft, COMAC`s C919. 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
DUMPING TREASURIES

China is the biggest holder of US government debt, with about $1.12 trillion in US Treasuries. Beijing buys Treasuries as a safe-haven for foreign exchange reserves.

The editor-in-chief of China`s influential Global Times tweeted in May that "many Chinese scholars are discussing the possibility of dumping U.S. Treasuries and how to do it specifically."

A selloff would hurt US markets, driving up interest rates and pushing up borrowing costs. The US central bank could lower its benchmark interest rate or buy debt to counter the move.

China sold the most long-dated US Treasuries in almost 2-1/2 years in March. But most China experts say Beijing is unlikely to undertake a big selloff because that would lower the value of China`s foreign exchange reserves. The Chinese would be hard-pressed to find a safe alternative investment with a good yield. 
&nbsp; &nbsp;&nbsp; 
DEVALUATION

Some analysts have floated the idea of a one-off devaluation of the Chinese currency to make the country`s exports more competitive despite US tariffs. But that would spook foreign and domestic investors and give the United States ammunition to sanction the country for currency manipulation.&nbsp;

"That is not retaliation. That is escalation of the trade war," said Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics.&nbsp;

The Chinese currency has weakened nearly 4 per cent since July 2018, when US authorities began collecting the first China-specific tariffs. That has absorbed some of the impact of tariffs on Chinese exporters.

HARASSING US COMPANIES OR SLOWING VISA APPROVALS

China`s Commerce Ministry said on Friday it will draft a list of foreign companies, organisations and individuals that it deems "unreliable" for harming Chinese companies, state-run China National Radio reported.

The move does not single out any countries or companies, but the report cited a ministry spokesman as saying the "unreliable entities list" will apply to those that flout market rules and the spirit of contracts, block supplies to Chinese companies for non-commercial reasons and "seriously harm the legitimate rights and interests" of Chinese companies.&nbsp;

China could target high-profile US companies such as Apple , although that could backfire as millions of Chinese people depend on the tech firm for their jobs.

Goldman Sachs estimates that banning Apple products could slash profits of the iPhone maker by almost a third. Apple and other US firms are also vulnerable to consumer boycotts in China. There is precedent for this: South Korean companies faced boycotts when deployment of a US anti-missile system angered China`s government.

Beijing could make life difficult for American banks, restaurant chains such as Starbucks , courier companies such as Fedex and commodity suppliers by opening tax inquiries, withholding licenses and other similar bureaucratic moves.

Big US businesses, however, have been among those pushing for a more moderate stance in Washington, so it would not help Beijing`s case to alienate them. Many American brands in China have joint ventures with Chinese partners, and these would also be hurt by government pressure.

Both sides have already slowed visa approvals for academics; authorities could do the same for executives and government officials.&nbsp;

DIPLOMATIC RECALCITRANCE AND MILITARY POSTURING

Beijing could reduce cooperation with the United States on thorny international issues, such as North Korea and Iran. It could also step up military gestures in the South China Sea and around Taiwan, an unofficial US ally.&nbsp;

RARE EARTH METALS&nbsp;

President Xi Jinping visited a rare earth firm in Southern China earlier in May, fuelling speculation China could cut off supplies of the metals, a key ingredient in high-technology consumer electronics and military equipment, to the United States as part of the trade war. China supplies 80 per cent of US rare earths.&nbsp; 
&nbsp; &nbsp;&nbsp; 
&nbsp;US RETALIATION AGAINST CHINA HIGHER TARIFFS

The United States could increase tariffs on Chinese imports. Authority for that rests with Trump, who has described himself as tariff-man. 
One option would be to raise levies on $50 billion worth of Chinese technology goods, including machinery, semiconductors, autos aircraft parts and intermediate electronic components on which tariffs were imposed last July and August. The products, taxed at a 25 per cent rate, were selected to avoid hitting US consumers and to hamper China`s technology development.

SANCTIONS AGAINST SPECIFIC COMPANIES

The United States could sanction additional Chinese companies flagged for a host of issues, from alleged intellectual property theft to sanctions violations or human rights concerns.

One option would be placing more companies on a blacklist that bars US suppliers from selling to them without special permits, as the Trump administration did with Huawei Technologies last month. &nbsp;

Washington is already considering sanctions for Chinese video surveillance firm Hikvision and equipment maker Zhejiang Dahua Technology. They are involved in surveillance at Chinese detention centres for ethnic Uighurs and other Muslims. &nbsp;

The downside would be hurting US companies that do business with the targeted firm.

Administration officials could further increase pressure on foreign governments to exclude Huawei from their 5G networks. 
&nbsp; &nbsp;&nbsp; 
JUSTICE DEPARTMENT CRACKDOWN

The Justice Department is likely to continue to crack down on Chinese spies and hackers for stealing technology and trade secrets from American corporations, as part of its China initiative to counter Chinese economic and security threats.&nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
FOREIGN POLICY AND DEFENSE LEVERS?&nbsp;

Tension has already risen as the United States undertakes freedom of navigation operations through the Taiwan Strait and South China Sea. China has been increasingly assertive about its sovereignty over Taiwan, which it considers Chinese territory to be brought under Beijing`s control by force if needed.

US warships have sailed through the Taiwan Strait at least once a month since the start of this year. The United States restarted such missions on a regular basis last July.&nbsp;

Trump`s government could impose sanctions on prominent Chinese officials seen as complicit in human rights violations of the Uighur population. Congress has urged Trump to impose such sanctions.

Washington could also deepen a crackdown on Chinese companies that fund or supply North Korea`s nuclear programs.&nbsp;

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground. Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports.

The escalating trade war between the United States and China has gone beyond tariffs as the countries increase pressure on each other to cede ground. Beijing has said it would retaliate after President Donald Trump blacklisted Chinese telecom giant Huawei and the United States extended tariffs to cover almost all Chinese imports. Chinese state media has warned that Beijing could use rare earths for its next strike in the trade war. The United States relies on China for supplies of the rare earths to make a host of high-tech products, from satellites to electric car batteries. Here are some other possible pressure points for each side. POTENTIAL CHINESE RESPONSES HIKING TARIFFS FURTHER China could impose tariffs on around $10 billion of US goods that as yet carry no retaliatory tariffs. Beijing removed some tariffs on US car imports in December, and could reimpose them. China could raise tariffs from 25 per cent on some US goods such as soybeans. China was the top US buyer of soybeans until the trade war, which came close to halting the flow altogether. If it raises tariffs again, Chinese soy importers will seek more supplies from Brazil and elsewhere, as they did in 2018, which would hurt US farmers. These are targeted tariffs, aimed at the US farming community that supported Trump`s 2016 presidential election victory. High-tech items, such as semi-conductor manufacturing equipment and chips, would be unlikely to feature on a list for higher tariffs, because China cannot easily find alternatives. China has so far spared Boeing passenger jets, its single most valuable US import, from tariffs. Chinese carriers are expanding rapidly to meet rising demand, so tariffs on Boeing could slow development of the domestic travel industry. China could buy more aircraft from France`s Airbus instead of Boeing, which would make it more reliant on Europe for a few years until it completes development of homegrown commercial aircraft, COMAC`s C919. DUMPING TREASURIES China is the biggest holder of US government debt, with about $1.12 trillion in US Treasuries. Beijing buys Treasuries as a safe-haven for foreign exchange reserves. The editor-in-chief of China`s influential Global Times tweeted in May that "many Chinese scholars are discussing the possibility of dumping U.S. Treasuries and how to do it specifically." A selloff would hurt US markets, driving up interest rates and pushing up borrowing costs. The US central bank could lower its benchmark interest rate or buy debt to counter the move. China sold the most long-dated US Treasuries in almost 2-1/2 years in March. But most China experts say Beijing is unlikely to undertake a big selloff because that would lower the value of China`s foreign exchange reserves. The Chinese would be hard-pressed to find a safe alternative investment with a good yield. DEVALUATION Some analysts have floated the idea of a one-off devaluation of the Chinese currency to make the country`s exports more competitive despite US tariffs. But that would spook foreign and domestic investors and give the United States ammunition to sanction the country for currency manipulation. "That is not retaliation. That is escalation of the trade war," said Gary Hufbauer, a senior fellow and trade expert at the Peterson Institute for International Economics. The Chinese currency has weakened nearly 4 per cent since July 2018, when US authorities began collecting the first China-specific tariffs. That has absorbed some of the impact of tariffs on Chinese exporters. HARASSING US COMPANIES OR SLOWING VISA APPROVALS China`s Commerce Ministry said on Friday it will draft a list of foreign companies, organisations and individuals that it deems "unreliable" for harming Chinese companies, state-run China National Radio reported. The move does not single out any countries or companies, but the report cited a ministry spokesman as saying the "unreliable entities list" will apply to those that flout market rules and the spirit of contracts, block supplies to Chinese companies for non-commercial reasons and "seriously harm the legitimate rights and interests" of Chinese companies. China could target high-profile US companies such as Apple , although that could backfire as millions of Chinese people depend on the tech firm for their jobs. Goldman Sachs estimates that banning Apple products could slash profits of the iPhone maker by almost a third. Apple and other US firms are also vulnerable to consumer boycotts in China. There is precedent for this: South Korean companies faced boycotts when deployment of a US anti-missile system angered China`s government. Beijing could make life difficult for American banks, restaurant chains such as Starbucks , courier companies such as Fedex and commodity suppliers by opening tax inquiries, withholding licenses and other similar bureaucratic moves. Big US businesses, however, have been among those pushing for a more moderate stance in Washington, so it would not help Beijing`s case to alienate them. Many American brands in China have joint ventures with Chinese partners, and these would also be hurt by government pressure. Both sides have already slowed visa approvals for academics; authorities could do the same for executives and government officials. DIPLOMATIC RECALCITRANCE AND MILITARY POSTURING Beijing could reduce cooperation with the United States on thorny international issues, such as North Korea and Iran. It could also step up military gestures in the South China Sea and around Taiwan, an unofficial US ally. RARE EARTH METALS President Xi Jinping visited a rare earth firm in Southern China earlier in May, fuelling speculation China could cut off supplies of the metals, a key ingredient in high-technology consumer electronics and military equipment, to the United States as part of the trade war. China supplies 80 per cent of US rare earths. US RETALIATION AGAINST CHINA HIGHER TARIFFS The United States could increase tariffs on Chinese imports. Authority for that rests with Trump, who has described himself as tariff-man. One option would be to raise levies on $50 billion worth of Chinese technology goods, including machinery, semiconductors, autos aircraft parts and intermediate electronic components on which tariffs were imposed last July and August. The products, taxed at a 25 per cent rate, were selected to avoid hitting US consumers and to hamper China`s technology development. SANCTIONS AGAINST SPECIFIC COMPANIES The United States could sanction additional Chinese companies flagged for a host of issues, from alleged intellectual property theft to sanctions violations or human rights concerns. One option would be placing more companies on a blacklist that bars US suppliers from selling to them without special permits, as the Trump administration did with Huawei Technologies last month. Washington is already considering sanctions for Chinese video surveillance firm Hikvision and equipment maker Zhejiang Dahua Technology. They are involved in surveillance at Chinese detention centres for ethnic Uighurs and other Muslims. The downside would be hurting US companies that do business with the targeted firm. Administration officials could further increase pressure on foreign governments to exclude Huawei from their 5G networks. JUSTICE DEPARTMENT CRACKDOWN The Justice Department is likely to continue to crack down on Chinese spies and hackers for stealing technology and trade secrets from American corporations, as part of its China initiative to counter Chinese economic and security threats. FOREIGN POLICY AND DEFENSE LEVERS? Tension has already risen as the United States undertakes freedom of navigation operations through the Taiwan Strait and South China Sea. China has been increasingly assertive about its sovereignty over Taiwan, which it considers Chinese territory to be brought under Beijing`s control by force if needed. US warships have sailed through the Taiwan Strait at least once a month since the start of this year. The United States restarted such missions on a regular basis last July. Trump`s government could impose sanctions on prominent Chinese officials seen as complicit in human rights violations of the Uighur population. Congress has urged Trump to impose such sanctions. Washington could also deepen a crackdown on Chinese companies that fund or supply North Korea`s nuclear programs.

US-China trade war: The levers they can pull

The International Monetary Fund does not see the threat of a global recession brought on by a widening US-China trade war and potential US tariffs on Mexican goods and autos, IMF Managing Director Christine Lagarde said on Wednesday.&nbsp;

Lagarde told Reuters in an interview, however, that such escalating tariff threats were sapping business and market confidence, and could slow growth that is currently expected to improve next year.

"We don`t see a recession," Lagarde said when asked whether US President Donald Trump`s threatened tariff actions could turn global growth negative. "Decelerating growth, but growth nonetheless -- 3.3 per cent at the end of this year, and certainly a strong US economy. We do not see at the moment, in our baseline, a recession."

Earlier on Wednesday, the IMF said current and threatened US-China tariffs could cut 2020 global gross domestic product by 0.5%, or about $455 billion -- a loss larger than G20 member South Africa`s annual economic output.

The estimate includes a recent US tariff increase to 25% on a $200 billion list of Chinese imports as well as Trump`s threat to tax another $300 billion worth of consumer imports, representing nearly all trade between the world`s two largest economies.&nbsp;

MEXICO TARIFFS&nbsp;

The IMF`s estimate does not include Trump`s threatened 5 per cent tariffs on goods from Mexico starting on Monday over immigration issues and ratcheting up monthly. Mexico has overtaken China this year as the largest US trading partner.

Lagarde called such actions "self-inflicted wounds" that must be avoided, a message she will take to a G20 finance ministers and central bank governors meeting in Fukuoka, Japan this weekend.

"One more tariff here, one more threat there, one more negotiation that has not yet started, add to a global uncertainty which is not conducive to additional growth," she told Reuters.

In a briefing note for G20 finance leaders, the IMF said that US tariffs and Chinese retaliatory measures currently in place could cut 2020 output 0.3 per cent, with more than half of that impact coming from negative effects on business confidence and financial market sentiment.

The IMF also on Wednesday cut its China growth forecasts for 2019 and 2020 due to the growing trade tensions. The Fund is due to release preliminary findings of its annual assessment of the US economy on Thursday.&nbsp; 
The IMF is predicting 3.6 per cent global growth for 2020, but said this outlook is vulnerable to trade tensions, uncertainty over Britain`s exit from the European Union, and uncertain recoveries in some stressed economies such as Argentina and Turkey. &nbsp;

FIGHTING WITH FACTS

Asked whether the IMF needed to take a tougher stance against US tariff actions, Lagarde said the Fund had to keep presenting facts and economic research to tell leaders: "If you go in that direction, these are the consequences. It`s for political leaders and for policymakers to decide what is in their interest."&nbsp;

Lagarde said she would discuss the IMF review of its quotas and other financial resources with G20 policymakers in Fukuoka this weekend.

While the United States is opposed to increasing the Fund`s quotas, or voting shares, Lagarde said she has had good dialogues with US Treasury Secretary Steven Mnuchin about the need to maintain the IMF`s total lending war chest of about $1 trillion.&nbsp;

"Having gone through the crisis 10 years ago and knowing the power of the fire powder that you can commit, I think it`s critically important to give a signal that the capacity to commit $1 trillion today if there is a multiple-country crisis should actually be preserved," Lagarde said, adding she was confident that the IMF will find ways to maintain its crisis lending fund by an October deadline.&nbsp;

The International Monetary Fund does not see the threat of a global recession brought on by a widening US-China trade war and potential US tariffs on Mexican goods and autos, IMF Managing Director Christine Lagarde said on Wednesday.

The International Monetary Fund does not see the threat of a global recession brought on by a widening US-China trade war and potential US tariffs on Mexican goods and autos, IMF Managing Director Christine Lagarde said on Wednesday. Lagarde told Reuters in an interview, however, that such escalating tariff threats were sapping business and market confidence, and could slow growth that is currently expected to improve next year. "We don`t see a recession," Lagarde said when asked whether US President Donald Trump`s threatened tariff actions could turn global growth negative. "Decelerating growth, but growth nonetheless -- 3.3 per cent at the end of this year, and certainly a strong US economy. We do not see at the moment, in our baseline, a recession." Earlier on Wednesday, the IMF said current and threatened US-China tariffs could cut 2020 global gross domestic product by 0.5%, or about $455 billion -- a loss larger than G20 member South Africa`s annual economic output. The estimate includes a recent US tariff increase to 25% on a $200 billion list of Chinese imports as well as Trump`s threat to tax another $300 billion worth of consumer imports, representing nearly all trade between the world`s two largest economies. MEXICO TARIFFS The IMF`s estimate does not include Trump`s threatened 5 per cent tariffs on goods from Mexico starting on Monday over immigration issues and ratcheting up monthly. Mexico has overtaken China this year as the largest US trading partner. Lagarde called such actions "self-inflicted wounds" that must be avoided, a message she will take to a G20 finance ministers and central bank governors meeting in Fukuoka, Japan this weekend. "One more tariff here, one more threat there, one more negotiation that has not yet started, add to a global uncertainty which is not conducive to additional growth," she told Reuters. In a briefing note for G20 finance leaders, the IMF said that US tariffs and Chinese retaliatory measures currently in place could cut 2020 output 0.3 per cent, with more than half of that impact coming from negative effects on business confidence and financial market sentiment. The IMF also on Wednesday cut its China growth forecasts for 2019 and 2020 due to the growing trade tensions. The Fund is due to release preliminary findings of its annual assessment of the US economy on Thursday. The IMF is predicting 3.6 per cent global growth for 2020, but said this outlook is vulnerable to trade tensions, uncertainty over Britain`s exit from the European Union, and uncertain recoveries in some stressed economies such as Argentina and Turkey. FIGHTING WITH FACTS Asked whether the IMF needed to take a tougher stance against US tariff actions, Lagarde said the Fund had to keep presenting facts and economic research to tell leaders: "If you go in that direction, these are the consequences. It`s for political leaders and for policymakers to decide what is in their interest." Lagarde said she would discuss the IMF review of its quotas and other financial resources with G20 policymakers in Fukuoka this weekend. While the United States is opposed to increasing the Fund`s quotas, or voting shares, Lagarde said she has had good dialogues with US Treasury Secretary Steven Mnuchin about the need to maintain the IMF`s total lending war chest of about $1 trillion. "Having gone through the crisis 10 years ago and knowing the power of the fire powder that you can commit, I think it`s critically important to give a signal that the capacity to commit $1 trillion today if there is a multiple-country crisis should actually be preserved," Lagarde said, adding she was confident that the IMF will find ways to maintain its crisis lending fund by an October deadline.

IMF's Lagarde warns US-China tariffs to slash global growth in 2020

Can The US - China Trade War Benefit India? Trade War Can Force Major Companies To Source More From India. Palki Sharma Upadhyay Explains.

Gravitas: US - China Trade War: Advantage For India?

Facing Tough Tariffs From US, China Is Thinking About Its Options. One Of Them Could Be Restricting US Access To Rare Earth Elements. This Could Cripple Many High-Tech Devices. Watch This Report From Gravitas.

Gravitas: China's Weapon Of Choice In Trade War: Rare Earth Metals

The United States said on Monday it was committed to welcoming <a href="https://www.wionews.com/world/china-warned-students-and-academics-on-the-risk-of-studying-in-the-united-states-223867">Chinese nationals for "legitimate" studies</a> but acknowledged increased visa scrutiny after Beijing warned its students of risks.

"We welcome Chinese students and scholars to the United States to conduct legitimate academic activities," a State Department spokeswoman said.

The spokeswoman said, however, that the United States had identified "an increasing number of instances" in which foreign intelligence co-opts students during their time in the United States.

"At the same time, we're committed to providing the highest quality service to legitimate travellers - who constitute the overwhelming majority of our visa applicants - so they can receive swift, thorough and clear decisions regarding their visa applications," she said.

China earlier on Monday had warned its students and academics of the "risk" of studying in the United States, citing an uptick in visa denials and delays.

The new guidance comes amid a surge in commercial tensions between the world's two largest economies, with the United States cracking down on premier Chinese tech company Huawei, citing security concerns due to its cosy ties with the government.

A decrease in Chinese students could be costly to the United States. China is the biggest source of international students on US campuses, with 360,000 attending last year -- and many pay costly full tuition.

The United States said on Monday it was committed to welcoming Chinese nationals for "legitimate" studies but acknowledged increased visa scrutiny after Beijing warned its students of risks.

The United States said on Monday it was committed to welcoming Chinese nationals for "legitimate" studies but acknowledged increased visa scrutiny after Beijing warned its students of risks. "We welcome Chinese students and scholars to the United States to conduct legitimate academic activities," a State Department spokeswoman said. The spokeswoman said, however, that the United States had identified "an increasing number of instances" in which foreign intelligence co-opts students during their time in the United States. "At the same time, we're committed to providing the highest quality service to legitimate travellers - who constitute the overwhelming majority of our visa applicants - so they can receive swift, thorough and clear decisions regarding their visa applications," she said. China earlier on Monday had warned its students and academics of the "risk" of studying in the United States, citing an uptick in visa denials and delays. The new guidance comes amid a surge in commercial tensions between the world's two largest economies, with the United States cracking down on premier Chinese tech company Huawei, citing security concerns due to its cosy ties with the government. A decrease in Chinese students could be costly to the United States. China is the biggest source of international students on US campuses, with 360,000 attending last year -- and many pay costly full tuition.

Welcome Chinese students to conduct legitimate academic activities: US

Asian markets largely tumbled on Monday, tracking global losses as Wall Street clocked its worst month this year, with investors opting for safe-haven assets in the wake of intensifying trade tensions.

US President Donald Trump's abrupt threat last week to hit Mexico with tariffs over immigration concerns did little to reassure investors, who were already anxious about the increasingly fractious US-China trade war.

The tariffs, which are set to kick off on June 10, will begin at five per cent and rise up to 25 per cent, unless Mexico substantially reduces the flow of illegal immigration to the United States, Trump warned.

"People have been saying for years that we should talk to Mexico. The problem is that Mexico is an 'abuser' of the United States, taking but never giving," the US leader tweeted Sunday.

He followed up the threats against Mexico with an announcement that Washington would no longer offer preferential trade treatment to India, starting Wednesday, in a bid to pressure New Delhi to increase market access to US goods.

Coming on the back of a months-long trade spat with China, Trump's latest salvos rattled markets, prompting a flight from equities to safe-haven investments.

That saw the yen strengthen which in turn weighed on Japanese shares, with Tokyo's main index plummeting 1.2 per cent.&nbsp;

Hong Kong fell 0.5 per cent, while Shanghai dropped 0.6 per cent. Sydney lost 0.9 per cent while Singapore edged down 0.2 per cent. But Seoul eked out gains of 0.6 per cent.

Beijing's imposition of duties on $60 billion worth of US goods came into effect Saturday -&nbsp;the move, which emerged in retaliation for Washington raising its penalties on $200 billion in Chinese goods, is the latest round in a bruising battle between the two superpowers.

Referring to "the never-ending game of tariff tag", OANDA senior market analyst Edward Moya said there were fears "we could see a global recession by the middle of next year if the US imposes additional tariffs on China and Mexico".

"The threats to global growth seem to be here to stay as markets appear convinced the new normal will be constant trade negotiations around the world."

"Instead of focusing on one trade deal at a time, the US has overplayed its dominant hand and appears vulnerable to only finalising temporary solutions," he said.&nbsp;

Since Trump fired the first shot, China and the US have deployed tit-for-tat tariffs on two-way trade worth hundreds of billions of dollars.

As talks have stalled, the dispute has spread beyond trade, with the US blacklisting Chinese tech giant Huawei over national security concerns, and Beijing threatening to unveil its own list of "unreliable" foreign companies.

In a sign of its unwillingness to cede too much ground, Chinese defence minister General Wei Fenghe said Sunday that "if the US wants to talk, we will keep the door open. If they want to fight, we are ready".

There are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit this month to jumpstart negotiations.

The row has seen oil markets plunge due to its effect on demand, cancelling the positive impact of the OPEC+ production cuts.

"The month of May was a disaster for crude prices -&nbsp;the worst May performance in seven years -&nbsp;as the escalation of the global trade war saw the global growth outlook crumble," said OANDA analyst Moya.

"Crude will need to rely on some positive outcomes on the trade front for prices to begin stabilising", he added.

Asian markets largely tumbled on Monday, tracking global losses as Wall Street clocked its worst month this year, with investors opting for safe-haven assets in the wake of intensifying trade tensions.

Asian markets largely tumbled on Monday, tracking global losses as Wall Street clocked its worst month this year, with investors opting for safe-haven assets in the wake of intensifying trade tensions. US President Donald Trump's abrupt threat last week to hit Mexico with tariffs over immigration concerns did little to reassure investors, who were already anxious about the increasingly fractious US-China trade war. The tariffs, which are set to kick off on June 10, will begin at five per cent and rise up to 25 per cent, unless Mexico substantially reduces the flow of illegal immigration to the United States, Trump warned. "People have been saying for years that we should talk to Mexico. The problem is that Mexico is an 'abuser' of the United States, taking but never giving," the US leader tweeted Sunday. He followed up the threats against Mexico with an announcement that Washington would no longer offer preferential trade treatment to India, starting Wednesday, in a bid to pressure New Delhi to increase market access to US goods. Coming on the back of a months-long trade spat with China, Trump's latest salvos rattled markets, prompting a flight from equities to safe-haven investments. That saw the yen strengthen which in turn weighed on Japanese shares, with Tokyo's main index plummeting 1.2 per cent. Hong Kong fell 0.5 per cent, while Shanghai dropped 0.6 per cent. Sydney lost 0.9 per cent while Singapore edged down 0.2 per cent. But Seoul eked out gains of 0.6 per cent. Beijing's imposition of duties on $60 billion worth of US goods came into effect Saturday - the move, which emerged in retaliation for Washington raising its penalties on $200 billion in Chinese goods, is the latest round in a bruising battle between the two superpowers. Referring to "the never-ending game of tariff tag", OANDA senior market analyst Edward Moya said there were fears "we could see a global recession by the middle of next year if the US imposes additional tariffs on China and Mexico". "The threats to global growth seem to be here to stay as markets appear convinced the new normal will be constant trade negotiations around the world." "Instead of focusing on one trade deal at a time, the US has overplayed its dominant hand and appears vulnerable to only finalising temporary solutions," he said. Since Trump fired the first shot, China and the US have deployed tit-for-tat tariffs on two-way trade worth hundreds of billions of dollars. As talks have stalled, the dispute has spread beyond trade, with the US blacklisting Chinese tech giant Huawei over national security concerns, and Beijing threatening to unveil its own list of "unreliable" foreign companies. In a sign of its unwillingness to cede too much ground, Chinese defence minister General Wei Fenghe said Sunday that "if the US wants to talk, we will keep the door open. If they want to fight, we are ready". There are hopes that Trump and Chinese President Xi Jinping will meet at the G20 summit this month to jumpstart negotiations. The row has seen oil markets plunge due to its effect on demand, cancelling the positive impact of the OPEC+ production cuts. "The month of May was a disaster for crude prices - the worst May performance in seven years - as the escalation of the global trade war saw the global growth outlook crumble," said OANDA analyst Moya. "Crude will need to rely on some positive outcomes on the trade front for prices to begin stabilising", he added.

Asian markets tumble over intensifying US-China trade tensions

The United States cannot use pressure to force a trade deal on China, a senior Chinese official and trade negotiator said on Sunday, refusing to be drawn on whether the leaders of the two countries would meet at the G20 summit to bash out an agreement.

<a href="https://www.wionews.com/world/china-says-war-with-us-would-be-a-disaster-as-tensions-mount-223556">Trade tensions rose sharply</a> last month after US President Donald Trump`s administration accused China of having "reneged" on its previous promises to make structural changes to its economic practices.

Washington later slapped additional tariffs of up to 25 per cent&nbsp;on $200 billion of Chinese goods, prompting Beijing to retaliate.&nbsp;

Speaking at a news conference, Chinese Vice Commerce Minister Wang Shouwen said it was irresponsible of the United States to accuse China of backtracking.

"If the US side wants to use extreme pressure, to escalate the trade friction, to force China to submit and make concessions, this is absolutely impossible," said Wang, who has been part of China`s negotiating team.

Switching into English, he said,&nbsp;"Nothing is agreed until everything is agreed".

"During the consultations, China has overcome many difficulties and put forward pragmatic solutions. However, the US has backtracked, and when you give them an inch, they want a yard," he said.

Wang said the US&nbsp;had made "unreasonably high" demands and insisted on adding "demands relating to China`s sovereign rights" to the countries` agreement. The raising of tariffs escalated tensions and severely frustrated the talks, he added.

His comments were echoed by Chinese Defence Minister Wei Fenghe at a defence forum in Singapore on Sunday.

"If the US wants to talk, we will keep the door open. If they want a fight, we will fight till the end," Wei said.&nbsp;

Trump has said he will meet President Xi Jinping at the G20 summit in Osaka at the end of the month, though China has not confirmed the meeting.&nbsp;

When asked if Xi would meet Trump in Japan, Wang said: "I don`t have any information on this to provide."

WHITE PAPER

Wang, who was speaking at the unveiling of a new government policy paper on the trade war, said US officials overestimate the trade deficit between the two countries and China should not be blamed for a decline in US manufacturing jobs.

The US&nbsp;goods and services deficit with China is closer to $150 billion and not the $410 billion quoted by US officials, he said, adding that China`s processing trade with the United States should not be included in deficit calculations.&nbsp;

The white paper cited three instances of the US backtracking on its commitments, adding that Washington was responsible for setbacks in the talks.&nbsp;

It said China had enough fiscal and monetary policy tools and "good momentum" to sustain economic development despite the trade war. Data last week showed China`s factory activity shrank in May at a more severe pace than expected.&nbsp;

It followed soft data in China`s retail, export and construction sectors, raising expectations that Beijing may need to roll out more stimulus to support the economy.

Wang also rejected assertions that Beijing is directing domestic companies on overseas acquisitions and investments.

"China`s government is not involved in the specific commercial behaviour of companies, and won`t instruct or require companies to invest in a project or buy a technology," he said.

Wang reiterated that China is willing to meet demand for rare earths from other countries, but it would be unacceptable if some nations used Chinese rare earths to create products that limited China`s development.

Xi`s visit to a rare earths plant last month sparked speculation that China would use its dominant position as an exporter of rare earths to the United States as leverage in the trade war.

Wang said the commerce ministry is investigating reports of delays in customs checks and will make efforts to speed up inspections and reduce costs for importers.

A top US business lobby group said last month that its members face increased obstacles in China such as government inspections, slower customs clearance and slower approval for licensing and other applications.

The United States cannot use pressure to force a trade deal on China, a senior Chinese official and trade negotiator said on Sunday, refusing to be drawn on whether the leaders of the two countries would meet at the G20 summit to bash out an agreement.

The United States cannot use pressure to force a trade deal on China, a senior Chinese official and trade negotiator said on Sunday, refusing to be drawn on whether the leaders of the two countries would meet at the G20 summit to bash out an agreement. Trade tensions rose sharply last month after US President Donald Trump`s administration accused China of having "reneged" on its previous promises to make structural changes to its economic practices. Washington later slapped additional tariffs of up to 25 per cent on $200 billion of Chinese goods, prompting Beijing to retaliate. Speaking at a news conference, Chinese Vice Commerce Minister Wang Shouwen said it was irresponsible of the United States to accuse China of backtracking. "If the US side wants to use extreme pressure, to escalate the trade friction, to force China to submit and make concessions, this is absolutely impossible," said Wang, who has been part of China`s negotiating team. Switching into English, he said, "Nothing is agreed until everything is agreed". "During the consultations, China has overcome many difficulties and put forward pragmatic solutions. However, the US has backtracked, and when you give them an inch, they want a yard," he said. Wang said the US had made "unreasonably high" demands and insisted on adding "demands relating to China`s sovereign rights" to the countries` agreement. The raising of tariffs escalated tensions and severely frustrated the talks, he added. His comments were echoed by Chinese Defence Minister Wei Fenghe at a defence forum in Singapore on Sunday. "If the US wants to talk, we will keep the door open. If they want a fight, we will fight till the end," Wei said. Trump has said he will meet President Xi Jinping at the G20 summit in Osaka at the end of the month, though China has not confirmed the meeting. When asked if Xi would meet Trump in Japan, Wang said: "I don`t have any information on this to provide." WHITE PAPER Wang, who was speaking at the unveiling of a new government policy paper on the trade war, said US officials overestimate the trade deficit between the two countries and China should not be blamed for a decline in US manufacturing jobs. The US goods and services deficit with China is closer to $150 billion and not the $410 billion quoted by US officials, he said, adding that China`s processing trade with the United States should not be included in deficit calculations. The white paper cited three instances of the US backtracking on its commitments, adding that Washington was responsible for setbacks in the talks. It said China had enough fiscal and monetary policy tools and "good momentum" to sustain economic development despite the trade war. Data last week showed China`s factory activity shrank in May at a more severe pace than expected. It followed soft data in China`s retail, export and construction sectors, raising expectations that Beijing may need to roll out more stimulus to support the economy. Wang also rejected assertions that Beijing is directing domestic companies on overseas acquisitions and investments. "China`s government is not involved in the specific commercial behaviour of companies, and won`t instruct or require companies to invest in a project or buy a technology," he said. Wang reiterated that China is willing to meet demand for rare earths from other countries, but it would be unacceptable if some nations used Chinese rare earths to create products that limited China`s development. Xi`s visit to a rare earths plant last month sparked speculation that China would use its dominant position as an exporter of rare earths to the United States as leverage in the trade war. Wang said the commerce ministry is investigating reports of delays in customs checks and will make efforts to speed up inspections and reduce costs for importers. A top US business lobby group said last month that its members face increased obstacles in China such as government inspections, slower customs clearance and slower approval for licensing and other applications.

China says US can't use pressure to force trade deal

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