China's decision to lower the value of renminbi has angered the United States which has accused Beijing of manipulating its currency. Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade - provoking US President Donald Trump's ire and sending global equities markets diving into the red.

So what exactly is currency manipulation? To put it simply, a country indulges in currency manipulation when it artificially lowers the value of its own currency. In turn, it lowers the cost of its exports to gain a competitive advantage.

The move will help maintain the attractiveness of Chinese goods, and keep its exports at a favourable prices.

The US called it an unfair practice; in fact Washington has threatened to impose more tariffs on Chinese goods from September 1. But Beijing said it lowered the value of its currency to balance out the adverse impact of high US tariffs on Chinese exports.

On the positive side, currency devaluation strengthens the sales and revenue of domestic industry. But on the negative side, due to high import cost, people may choose not to buy imported goods, which could lead to inflation or sometimes monopoly in the local market.

An immediate impact of currency devaluation by China could be felt by Indian exporters. If Chinese exports become more attractive, it will make it that much more difficult for Indian exports.

The Indian rupee is already trading higher, at 70.80 per dollar.

Some Asian countries could follow suit by lowering their own currencies which would potentially affect the global supply chain.

The second major battle between the US and China - amid the trade war - has sapped business confidence and undermined both countries' manufacturing sectors just as the world economy's slowdown worsens.

Activity in the US service sector hit a three-year low last month, survey data showed Monday, confirming a step-down in US economic growth.

China's decision to lower the value of renminbi has angered the United States which has accused Beijing of manipulating its currency. Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade - provoking US President Donald Trump's ire and sending global equities markets diving into the red.

China's decision to lower the value of renminbi has angered the United States which has accused Beijing of manipulating its currency. Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade - provoking US President Donald Trump's ire and sending global equities markets diving into the red. So what exactly is currency manipulation? To put it simply, a country indulges in currency manipulation when it artificially lowers the value of its own currency. In turn, it lowers the cost of its exports to gain a competitive advantage. The move will help maintain the attractiveness of Chinese goods, and keep its exports at a favourable prices. The US called it an unfair practice; in fact Washington has threatened to impose more tariffs on Chinese goods from September 1. But Beijing said it lowered the value of its currency to balance out the adverse impact of high US tariffs on Chinese exports. On the positive side, currency devaluation strengthens the sales and revenue of domestic industry. But on the negative side, due to high import cost, people may choose not to buy imported goods, which could lead to inflation or sometimes monopoly in the local market. An immediate impact of currency devaluation by China could be felt by Indian exporters. If Chinese exports become more attractive, it will make it that much more difficult for Indian exports. The Indian rupee is already trading higher, at 70.80 per dollar. Some Asian countries could follow suit by lowering their own currencies which would potentially affect the global supply chain. The second major battle between the US and China - amid the trade war - has sapped business confidence and undermined both countries' manufacturing sectors just as the world economy's slowdown worsens. Activity in the US service sector hit a three-year low last month, survey data showed Monday, confirming a step-down in US economic growth.

Explained: What is currency manipulation and how China's move can impact India

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/trade-war-like-the-one-going-on-between-us-and-china-foolish-thailand-ambassador-at-wion-world-order-238434&amp;sa=U&amp;ved=2ahUKEwij9_GHsNLjAhUbHo8KHfTpAw0QFjADegQIDxAC&amp;usg=AOvVaw3q6V_pmXlrHO0FOtaqNfXk">US-China trade war</a> capped gains.

Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week.

US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week.

Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf.

US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait.

However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said.

Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry.

WATCH:&nbsp;Iran-UK tanker tensions: Iran releases 9 crew members

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"Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said.

Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020.

"Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures.

The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year.

Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains.

Oil prices rose on Friday and were on track for a weekly increase as geopolitical tensions over Iran remained unresolved, although flagging prospects for global economic growth amid the US-China trade war capped gains. Brent crude futures were up 23 cents at $63.62 per barrel at 0922 GMT, equivalent to a weekly rise of around 1.8%. They fell 6% last week. US West Texas Intermediate crude was 25 cents higher at $56.27 a barrel, a weekly gain of 1.1%. It fell to 7.5% last week. Tensions remained high around the Strait of Hormuz, the world's most important oil passageway, as Iran refused to release a British-flagged tanker it seized last week in the Gulf. US Secretary of State Mike Pompeo said Washington had asked Japan, France, Germany, South Korea, Australia, and other nations to join a maritime security initiative in the Middle East so oil and other products can flow through the strait. However, oil prices' reaction to the strains in the Gulf has been relatively muted. "It appears that the majority of market participants do not expect a military conflict that would hamper oil shipments," Commerzbank analyst Carsten Fritsch said. Prices also drew support from a crude inventory draw in the United States, but gains were limited as the fall appeared to have been largely anticipated. The US production in the Gulf of Mexico was still feeling the effects of Hurricane Barry. WATCH: Iran-UK tanker tensions: Iran releases 9 crew members × "Several indicators pointing to a slowdown of global oil demand growth appear to have taken over market sentiment," Jefferies analyst Jason Gammel said. Reuters polls taken July 1-24 showed the growth outlook for nearly 90% of the more than 45 economies surveyed was downgraded or left unchanged. That applied not just to this year but also in 2020. "Growing challenges in the macroeconomic environment have kept bullish bets in check as risk appetites remain soft over potential weakness in global fuel demand," said Benjamin Lu, commodities analyst at Singapore-based Phillip Futures. The slowdown in global manufacturing and trade, and the associated hit to oil consumption, largely stems from a US-China trade war that has rumbled on over the last year. Trade talks between the two countries broke down in May after nearing an agreement. Next week, the top US and Chinese negotiators meet for the first time since then. Any positive outcome of the meeting is expected to boost oil prices.

Oil prices rise as Iran tensions remain unresolved

American delivery firm FedEx Corp likely withheld more than 100 packages of Huawei, a report said, while the Chinese tech giant also blamed US-listed Flex for seizing its goods, as <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/trade-war-like-the-one-going-on-between-us-and-china-foolish-thailand-ambassador-at-wion-world-order-238434&amp;sa=U&amp;ved=2ahUKEwiSs4rItdLjAhXc7nMBHeV6DwEQFjADegQIDhAC&amp;usg=AOvVaw1bWJVe7haDQEfv7LLORLbL">Sino-US tensions</a> further strain business ties.

Chinese authorities investigating FedEx suspect it illegally held back the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/huaweis-us-research-arm-slashes-jobs-as-trade-ban-bites-238136&amp;sa=U&amp;ved=2ahUKEwj___zltdLjAhWxheYKHVCHA3kQFjADegQIDxAC&amp;usg=AOvVaw3sBVXlXmuPglcgQ-qhcuOx">Huawei</a> packages and that it also violated other laws, state news agency Xinhua reported on Friday.

Beijing started a probe into FedEx last month after Huawei said the US&nbsp;delivery firm had diverted parcels intended for it. It came after Huawei was placed by Washington on a blacklist in mid-May that effectively blocks US firms from doing business with the Shenzhen-based telecoms equipment maker.

"The investigation showed that FedEx was suspected of holding up more than 100 Huawei packages entering China," Xinhua said. "Investigators also discovered clues to other violations of the company."

FedEx had no immediate comment on the report. Huawei declined to comment.

The report comes a day after Huawei said electronics contract manufacturer Flex "seized" its goods in China.

The developments mark the latest fallout from Washington's trade ban on Huawei, which has not only rattled the global technology supply chain tied to Huawei's $105 billion business but also is causing much confusion among companies and organisations well beyond the US borders regarding the limits of restrictions.

FedEx has apologised for multiple incidents of diversion of Huawei packages, which is attributed to "operational errors", but it later sued the US&nbsp;government for what it said was an "impossible task" to "police the contents" of export shipments.

Huawei told Reuters on Thursday that Flex had withheld some 700 million yuan ($101.81 million) worth of its goods in its China factory, confirming a report by the Chinese government-backed newspaper Global Times.

Flex kept the Huawei assets in its factory in the southern city of Zhuhai after the US blacklisting and caused losses for Huawei, according to the report.

Huawei told Reuters that it has retrieved some 400 million yuan of goods last month after negotiations and is still trying to take back the rest.

Flex said in an emailed statement to Reuters, "Flex and Huawei have had a long-standing and successful partnership which has recently been impacted by unforeseen challenges resulting from the US-China trade situation. Both parties are actively working to find a mutually agreeable way forward given these facts."

A Flex spokesman declined to say whether it still held any Huawei assets or counts Huawei as a customer, but said China remains "a very important center of production and end-market" where it employs tens of thousands of people.

Flex said on Friday in its quarterly earnings statement that it would accelerate a move to reduce its exposure to certain products in China and India after "recent geopolitical developments and uncertainties", which primarily impacted "one customer in China". It did not name the customer.

"We have seen a reduction in demand for products assembled for that customer," it said.

American delivery firm FedEx Corp likely withheld more than 100 packages of Huawei, a report said, while the Chinese tech giant also blamed US-listed Flex for seizing its goods, as Sino-US tensions further strain business ties.

American delivery firm FedEx Corp likely withheld more than 100 packages of Huawei, a report said, while the Chinese tech giant also blamed US-listed Flex for seizing its goods, as Sino-US tensions further strain business ties. Chinese authorities investigating FedEx suspect it illegally held back the Huawei packages and that it also violated other laws, state news agency Xinhua reported on Friday. Beijing started a probe into FedEx last month after Huawei said the US delivery firm had diverted parcels intended for it. It came after Huawei was placed by Washington on a blacklist in mid-May that effectively blocks US firms from doing business with the Shenzhen-based telecoms equipment maker. "The investigation showed that FedEx was suspected of holding up more than 100 Huawei packages entering China," Xinhua said. "Investigators also discovered clues to other violations of the company." FedEx had no immediate comment on the report. Huawei declined to comment. The report comes a day after Huawei said electronics contract manufacturer Flex "seized" its goods in China. The developments mark the latest fallout from Washington's trade ban on Huawei, which has not only rattled the global technology supply chain tied to Huawei's $105 billion business but also is causing much confusion among companies and organisations well beyond the US borders regarding the limits of restrictions. FedEx has apologised for multiple incidents of diversion of Huawei packages, which is attributed to "operational errors", but it later sued the US government for what it said was an "impossible task" to "police the contents" of export shipments. Huawei told Reuters on Thursday that Flex had withheld some 700 million yuan ($101.81 million) worth of its goods in its China factory, confirming a report by the Chinese government-backed newspaper Global Times. Flex kept the Huawei assets in its factory in the southern city of Zhuhai after the US blacklisting and caused losses for Huawei, according to the report. Huawei told Reuters that it has retrieved some 400 million yuan of goods last month after negotiations and is still trying to take back the rest. Flex said in an emailed statement to Reuters, "Flex and Huawei have had a long-standing and successful partnership which has recently been impacted by unforeseen challenges resulting from the US-China trade situation. Both parties are actively working to find a mutually agreeable way forward given these facts." A Flex spokesman declined to say whether it still held any Huawei assets or counts Huawei as a customer, but said China remains "a very important center of production and end-market" where it employs tens of thousands of people. Flex said on Friday in its quarterly earnings statement that it would accelerate a move to reduce its exposure to certain products in China and India after "recent geopolitical developments and uncertainties", which primarily impacted "one customer in China". It did not name the customer. "We have seen a reduction in demand for products assembled for that customer," it said.

Huawei's ties with partners FedEx, Flex fray on US-China tensions

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

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

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

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

<a href="https://www.wionews.com/world/evil-britain-commits-piracy-and-steals-our-ship-there-will-be-a-response-at-an-appropriate-time-warns-khamenei-236467">Evil Britain commits piracy and steals our ship, there will be a response at an appropriate time, warns Khamenei</a>

Iran's supreme leader,&nbsp;Ayatollah Ali Khamenei, said on Tuesday&nbsp;Iran would respond to Britain's "piracy" over the seizure of an Iranian oil tanker in Gibraltar.

<a href="https://www.wionews.com/world/china-desperate-to-reach-trade-deal-with-us-totally-misleading-foreign-ministry-236382">China 'desperate' to reach trade deal with US totally misleading: Foreign ministry</a>

China on Tuesday rebuffed a suggestion from&nbsp;US President Donald Trump&nbsp;that Beijing needs a trade deal with the United States because its economy is slowing, saying this was "totally misleading" and that both countries wanted an agreement.

<a href="https://www.wionews.com/world/democratic-congresswomen-hit-back-after-racist-trump-tirade-236437">Democratic congresswomen hit back after Trump's 'racist' tirade</a>

Democratic congresswomen targeted in a xenophobic&nbsp;tirade by President Donald Trump&nbsp;hit back Monday, saying he was trying to distract attention away from his policies with his "blatantly racist attack."

<a href="https://www.wionews.com/world/nuclear-talks-at-risk-if-us-south-korea-exercises-go-ahead-north-korea-236394">Nuclear talks at risk if US-South Korea exercises go ahead: North Korea</a>

Talks on getting&nbsp;North Korea to abandon its nuclear weapons&nbsp;are at risk because the United States looks set to break a promise not to hold military exercises with&nbsp;South Korea, North Korea said on Tuesday.

<a href="https://www.wionews.com/world/afghanistan-22-taliban-terrorists-1-civilian-killed-in-counter-terrorism-operation-236473">Afghanistan: 22 Taliban terrorists, 1 civilian killed in counter terrorism operation</a>

Twenty-two Taliban terrorists and one civilian were killed in a counter-terrorism operation launched by the Special Operation Forces of Afghan National Police in the country's eastern province of Logar, the country's Ministry of Interior Affairs said on Tuesday.

Evil Britain commits piracy and steals our ship, there will be a response at an appropriate time, warns Khamenei Iran's supreme leader, Ayatollah Ali Khamenei, said on Tuesday Iran would respond to Britain's "piracy" over the seizure of an Iranian oil tanker in Gibraltar.

Evil Britain commits piracy and steals our ship, there will be a response at an appropriate time, warns Khamenei Iran's supreme leader, Ayatollah Ali Khamenei, said on Tuesday Iran would respond to Britain's "piracy" over the seizure of an Iranian oil tanker in Gibraltar. China 'desperate' to reach trade deal with US totally misleading: Foreign ministry China on Tuesday rebuffed a suggestion from US President Donald Trump that Beijing needs a trade deal with the United States because its economy is slowing, saying this was "totally misleading" and that both countries wanted an agreement. Democratic congresswomen hit back after Trump's 'racist' tirade Democratic congresswomen targeted in a xenophobic tirade by President Donald Trump hit back Monday, saying he was trying to distract attention away from his policies with his "blatantly racist attack." Nuclear talks at risk if US-South Korea exercises go ahead: North Korea Talks on getting North Korea to abandon its nuclear weapons are at risk because the United States looks set to break a promise not to hold military exercises with South Korea, North Korea said on Tuesday. Afghanistan: 22 Taliban terrorists, 1 civilian killed in counter terrorism operation Twenty-two Taliban terrorists and one civilian were killed in a counter-terrorism operation launched by the Special Operation Forces of Afghan National Police in the country's eastern province of Logar, the country's Ministry of Interior Affairs said on Tuesday.

News brief: Big stories of the day

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

US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford <a href="https://www.wionews.com/world/us-china-rekindle-trade-talks-ahead-of-donald-trump-xi-jinping-g20-meeting-228545">another round of tariff rise</a>.

Different from former tariff increases, which mainly targeted intermediate products and industrial products, the new round of tariff is on consumer goods that every American resident has to use, such as cellphones, laptops, clothes, shoes, toys, and gaming devices, with a total worth of US $300 billion.

However, statistics showed that 82 per cent of cellphones and 94 per cent of laptops in US market are manufactured or assembled by Chinese manufactures, and a US $277 billion worth of clothes come from China.

If the levies are imposed, American consumers will <a href="https://www.wionews.com/world/amid-heightened-us-china-tensions-science-suffers-collateral-damage-228220">suffer a huge blow</a>, and American companies will lose a huge amount of profits, with some perhaps having to lay off employees or even close.

Although the US Department of Commerce and the Office of the US Trade Representative constantly ask American companies to seek alternatives in other countries, the answer is almost the same.

Watch: US-China trade friction 'hurting world economic chain'

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"It's not as simple to change a supply chain as to just send an email and say 'I would rather deal with you' or something. It takes many years to develop a relationship with suppliers. So for us, it's taken several years, almost decades now. It's cost a lot of money for us to visit China or have them visit us. And it's years of trust of doing business with each other," said Brandon Peckman, Sales Manager of Real Trading LLC.

The US publishing industry will probably suffer heavily from the tariff increase, as a US $2.3 billion worth of books on American market are printed and <a href="https://www.wionews.com/world/had-a-very-good-phone-call-with-xi-will-have-extended-meeting-with-him-at-g-20-in-japan-228438">made in China</a>.

"We don't have an option as to where we can go. Often it's because of the cost. A lot of the daily newspapers have gone out of business here in the States, so the printer capability, which I think you heard some testimony about, has gone down. So it's costs, also technology," said Jamie Fiocco, chairman of American Booksellers Association.

"One of the best examples might be children's book. And a lot of those titles are four-color titles. They're titles that use unique formats or maybe have especially interesting add-ons in terms of sidelines that come with those titles. And the US currently does not have that capacity or the technical skill to produce such titles. The US has a lot of very fine printers, but they tend to concentrate on one-color printing. Right now, it's coming from China," said Dan Cullen, Senior Strategy Officer of American Booksellers Association.

Over 500 American enterprises and industry associations attended the hearing on a further of US $300 billion worth of imported Chinese products at the International Trade Commission in Washington DC on Monday.

US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford another round of tariff rise.

US business representatives who attended the new round of hearing on tariff increase on Monday opposed the additional tariffs, saying that they cannot do without China's supply and cannot afford another round of tariff rise. Different from former tariff increases, which mainly targeted intermediate products and industrial products, the new round of tariff is on consumer goods that every American resident has to use, such as cellphones, laptops, clothes, shoes, toys, and gaming devices, with a total worth of US $300 billion. However, statistics showed that 82 per cent of cellphones and 94 per cent of laptops in US market are manufactured or assembled by Chinese manufactures, and a US $277 billion worth of clothes come from China. If the levies are imposed, American consumers will suffer a huge blow, and American companies will lose a huge amount of profits, with some perhaps having to lay off employees or even close. Although the US Department of Commerce and the Office of the US Trade Representative constantly ask American companies to seek alternatives in other countries, the answer is almost the same. Watch: US-China trade friction 'hurting world economic chain' "It's not as simple to change a supply chain as to just send an email and say 'I would rather deal with you' or something. It takes many years to develop a relationship with suppliers. So for us, it's taken several years, almost decades now. It's cost a lot of money for us to visit China or have them visit us. And it's years of trust of doing business with each other," said Brandon Peckman, Sales Manager of Real Trading LLC. The US publishing industry will probably suffer heavily from the tariff increase, as a US $2.3 billion worth of books on American market are printed and made in China. "We don't have an option as to where we can go. Often it's because of the cost. A lot of the daily newspapers have gone out of business here in the States, so the printer capability, which I think you heard some testimony about, has gone down. So it's costs, also technology," said Jamie Fiocco, chairman of American Booksellers Association. "One of the best examples might be children's book. And a lot of those titles are four-color titles. They're titles that use unique formats or maybe have especially interesting add-ons in terms of sidelines that come with those titles. And the US currently does not have that capacity or the technical skill to produce such titles. The US has a lot of very fine printers, but they tend to concentrate on one-color printing. Right now, it's coming from China," said Dan Cullen, Senior Strategy Officer of American Booksellers Association. Over 500 American enterprises and industry associations attended the hearing on a further of US $300 billion worth of imported Chinese products at the International Trade Commission in Washington DC on Monday.

We cannot run business without China's supply, says US publishers amid trade war

Chinese telecom giant <a href="https://www.wionews.com/world/facebook-suspends-app-pre-installs-on-huawei-phones-225167">Huawei Technologies</a> Co. Ltd. said Thursday that it had obtained 46 commercial 5G contracts so far in 30 countries and regions.

It has shipped more than 100,000 5G base stations, ranking top in the world, according to the company.

<a href="https://www.wionews.com/world/huawei-willing-to-sign-no-spy-agreement-with-us-government-chairman-224403/amp">Huawei </a>said it is well prepared for China's 5G commercial use. In February last year, it made the world's first 5G call and launched the first 5G terminal device.

Headquartered in the southern Chinese city of Shenzhen, the privately-owned Huawei is a world-leading telecommunication solution provider and also one of the world's major smartphone brands.

China's Ministry of Industry and Information Technology granted commercial-use 5G licenses Thursday to the China Broadcasting and Television Network and the country's top three telecom operators -- China Telecom Group, China Mobile Communications Group and China United Network Communications Group. 
&nbsp;

Chinese telecom giant Huawei Technologies Co. Ltd. said Thursday that it had obtained 46 commercial 5G contracts so far in 30 countries and regions. It has shipped more than 100,000 5G base stations, ranking top in the world, according to the company.

Chinese telecom giant Huawei Technologies Co. Ltd. said Thursday that it had obtained 46 commercial 5G contracts so far in 30 countries and regions. It has shipped more than 100,000 5G base stations, ranking top in the world, according to the company. Huawei said it is well prepared for China's 5G commercial use. In February last year, it made the world's first 5G call and launched the first 5G terminal device. Headquartered in the southern Chinese city of Shenzhen, the privately-owned Huawei is a world-leading telecommunication solution provider and also one of the world's major smartphone brands. China's Ministry of Industry and Information Technology granted commercial-use 5G licenses Thursday to the China Broadcasting and Television Network and the country's top three telecom operators -- China Telecom Group, China Mobile Communications Group and China United Network Communications Group.

Huawei obtains 46 commercial 5G contracts in 30 countries

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the <a href="https://www.wionews.com/world/google-flags-us-national-security-risks-from-huawei-ban-report-225151">Chinese tech giant</a> as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software.

Customers who already have <a href="https://www.wionews.com/world/huawei-willing-to-sign-no-spy-agreement-with-us-government-chairman-224403">Huawei </a>phones will still be able to use its apps and receive updates, Facebook told Reuters. But new Huawei phones will no longer be able to have Facebook, WhatsApp and Instagram apps pre-installed.

Smartphone vendors often enter business deals to pre-install popular apps such as Facebook. Apps including Twitter and Booking.com also come pre-installed on Huawei phones in many markets. Twitter Inc declined to comment and Booking Holdings did not respond to a request.

The move by Facebook dampens the sales outlook for Huawei Technologies Co Ltd, whose smartphone business became its biggest revenue generator last year, powered by strong growth in Europe and Asia.

Also read-&nbsp;<a href="https://www.wionews.com/world/explainer-us-china-trade-war-the-levers-they-can-pull-224809">US-China trade war: The levers they can pull</a>

Huawei declined to comment.

Alphabet Inc's Google said earlier that it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the U.S. government expires in August. But Google's Playstore and all Google apps will still be available for current models of Huawei phones including those which have not yet shipped or even been built.

The Facebook ban, by contrast, applies to any Huawei phone that has not yet left the factory, according to a person familiar with the matter. Facebook declined to comment on when the suspension took place.

In May, Washington banned US companies from supplying technology to Huawei, part of a long-running campaign against the company. The United States alleges that Huawei is too close to the Chinese government and that its telecom network gear and other products could be a conduit for espionage, which Huawei denies.

Watch: Huawei says US blacklisting sets 'dangerous precedent'

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Buyers of current Huawei phone models that do not have Facebook pre-installed would still be able to download it from the Google Playstore. Future versions of Huawei phones, however, will not have access to the Google Playstore and its apps unless the US government changes course.

Huawei has said it was prepared for the US action and vowed to work around any disruptions. But some customers at stores in Europe and Asia have told Reuters that they are reluctant to buy Huawei phones in the face of uncertainties, and analysts expect a dramatic drop in Huawei smartphone sales. 
&nbsp;

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software.

Facebook Inc is no longer allowing pre-installation of its apps on Huawei phones, the latest blow for the Chinese tech giant as it struggles to keep its business afloat in the face of a US ban on its purchase of American parts and software. Customers who already have Huawei phones will still be able to use its apps and receive updates, Facebook told Reuters. But new Huawei phones will no longer be able to have Facebook, WhatsApp and Instagram apps pre-installed. Smartphone vendors often enter business deals to pre-install popular apps such as Facebook. Apps including Twitter and Booking.com also come pre-installed on Huawei phones in many markets. Twitter Inc declined to comment and Booking Holdings did not respond to a request. The move by Facebook dampens the sales outlook for Huawei Technologies Co Ltd, whose smartphone business became its biggest revenue generator last year, powered by strong growth in Europe and Asia. Also read- US-China trade war: The levers they can pull Huawei declined to comment. Alphabet Inc's Google said earlier that it would no longer provide Android software for Huawei phones after a 90-day reprieve granted by the U.S. government expires in August. But Google's Playstore and all Google apps will still be available for current models of Huawei phones including those which have not yet shipped or even been built. The Facebook ban, by contrast, applies to any Huawei phone that has not yet left the factory, according to a person familiar with the matter. Facebook declined to comment on when the suspension took place. In May, Washington banned US companies from supplying technology to Huawei, part of a long-running campaign against the company. The United States alleges that Huawei is too close to the Chinese government and that its telecom network gear and other products could be a conduit for espionage, which Huawei denies. Watch: Huawei says US blacklisting sets 'dangerous precedent' × Buyers of current Huawei phone models that do not have Facebook pre-installed would still be able to download it from the Google Playstore. Future versions of Huawei phones, however, will not have access to the Google Playstore and its apps unless the US government changes course. Huawei has said it was prepared for the US action and vowed to work around any disruptions. But some customers at stores in Europe and Asia have told Reuters that they are reluctant to buy Huawei phones in the face of uncertainties, and analysts expect a dramatic drop in Huawei smartphone sales.

Facebook suspends app pre-installs on Huawei phones

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

The United States is "playing with fire" with its support for self-ruled Taiwan, China said on Thursday, in angry comments ahead of a meeting between Defence Minister Wei Fenghe and acting US Defense Secretary Patrick Shanahan.

The two countries, locked in an escalating trade war, are also at odds over a series of strategic issues, from the disputed South China Sea to democratic Taiwan, claimed by China as its sacred territory, to be taken by force if needed.

Wei and Shanahan - who on his first day as acting defence secretary in January said the US military would focus on "China, China, China" - are both attending the annual Shangri-La defence forum in Singapore which begins on Friday, where they are expected to meet.

China has been particularly incensed by recent U.S. Navy patrols in the Taiwan Strait, US&nbsp;legislation in support of Taiwan and a meeting between Taiwan`s national security chief David Lee and White House national security adviser John Bolton.

Speaking at a regular monthly news briefing, Chinese Defence Ministry spokesman Wu Qian described military ties between Beijing and Washington as generally good.&nbsp;

But he took a much darker tone when asked about US support for Taiwan, an issue China has long described as the most sensitive in relations between the two countries.

"Recently, the US sides has been continually playing the `Taiwan card`, trying in futile to `use Taiwan to control China`. This is deluded," Wu said.

"The series of actions the US side has taken is playing with fire, seriously harms the development of military relations between China and the United States, and seriously harms peace and stability in the Taiwan Strait area."

Taiwan`s air, sea and land forces conducted an exercise to repel an invading force on Thursday, as its defence minister pledged to defend the island against what it sees as China`s rising military threat.

Washington has no formal ties with Taipei, but is its most important international supporter and main supplier of arms.

A senior US&nbsp;defence official said the fact that Shanahan was going to the Shangri-la dialogue during a period of tension with Iran was a sign that the United States was committed to the region and its allies.&nbsp;

During a meeting with Wei, Shanahan is expected to bring up better communication between the two militaries to avoid the risk of miscalculation, the US official said.

While Wei will likely tackle the Sino-US trade dispute and the hardening Trump administration approaches to Taiwan and the South China Sea, Asian states will be looking for calming messages, according to security experts and regional diplomats.&nbsp;

"Regional countries will be expecting reassurances that China`s intentions are in fact peaceful given its growing military might," said Singapore-based regional security analyst Ian Storey. Storey, of Singapore`s ISEAS Yusof Ishak Institute, said Wei must also speak to his domestic constituents, given the fact his address and a rare question-and-answer session are expected to be shown prominently in China.

"In the current environment maybe they won`t want him to be too accommodating. He can be expected to blame the US&nbsp;for growing tensions in the South China Sea and there is no way he is going to admit that China is part of the problem."

The United States is "playing with fire" with its support for self-ruled Taiwan, China said on Thursday, in angry comments ahead of a meeting between Defence Minister Wei Fenghe and acting US Defense Secretary Patrick Shanahan.

The United States is "playing with fire" with its support for self-ruled Taiwan, China said on Thursday, in angry comments ahead of a meeting between Defence Minister Wei Fenghe and acting US Defense Secretary Patrick Shanahan. The two countries, locked in an escalating trade war, are also at odds over a series of strategic issues, from the disputed South China Sea to democratic Taiwan, claimed by China as its sacred territory, to be taken by force if needed. Wei and Shanahan - who on his first day as acting defence secretary in January said the US military would focus on "China, China, China" - are both attending the annual Shangri-La defence forum in Singapore which begins on Friday, where they are expected to meet. China has been particularly incensed by recent U.S. Navy patrols in the Taiwan Strait, US legislation in support of Taiwan and a meeting between Taiwan`s national security chief David Lee and White House national security adviser John Bolton. Speaking at a regular monthly news briefing, Chinese Defence Ministry spokesman Wu Qian described military ties between Beijing and Washington as generally good. But he took a much darker tone when asked about US support for Taiwan, an issue China has long described as the most sensitive in relations between the two countries. "Recently, the US sides has been continually playing the `Taiwan card`, trying in futile to `use Taiwan to control China`. This is deluded," Wu said. "The series of actions the US side has taken is playing with fire, seriously harms the development of military relations between China and the United States, and seriously harms peace and stability in the Taiwan Strait area." Taiwan`s air, sea and land forces conducted an exercise to repel an invading force on Thursday, as its defence minister pledged to defend the island against what it sees as China`s rising military threat. Washington has no formal ties with Taipei, but is its most important international supporter and main supplier of arms. A senior US defence official said the fact that Shanahan was going to the Shangri-la dialogue during a period of tension with Iran was a sign that the United States was committed to the region and its allies. During a meeting with Wei, Shanahan is expected to bring up better communication between the two militaries to avoid the risk of miscalculation, the US official said. While Wei will likely tackle the Sino-US trade dispute and the hardening Trump administration approaches to Taiwan and the South China Sea, Asian states will be looking for calming messages, according to security experts and regional diplomats. "Regional countries will be expecting reassurances that China`s intentions are in fact peaceful given its growing military might," said Singapore-based regional security analyst Ian Storey. Storey, of Singapore`s ISEAS Yusof Ishak Institute, said Wei must also speak to his domestic constituents, given the fact his address and a rare question-and-answer session are expected to be shown prominently in China. "In the current environment maybe they won`t want him to be too accommodating. He can be expected to blame the US for growing tensions in the South China Sea and there is no way he is going to admit that China is part of the problem."

US 'playing with fire' on Taiwan, China says ahead of defence meeting

<a href="https://www.wionews.com/world/dont-say-we-didnt-warn-you-china-ready-to-hit-back-at-us-with-rare-earths-222406">China accused the United States</a> of "naked economic terrorism" on Thursday as Beijing ramps up the rhetoric in their trade war.

The world's <a href="https://www.wionews.com/world/rare-earths-the-latest-weapon-in-the-us-china-trade-war-222578">top two economies are at loggerheads</a> as trade talks have apparently stalled, with US President Donald Trump hiking tariffs on $200 billion in Chinese goods earlier this month and blacklisting telecoms giant Huawei.

"We are against the trade war, but we are not afraid of it," vice foreign minister Zhang Hanhui said at a press briefing to preview President Xi Jinping's trip to Russia next week.

"This premeditated instigation of a trade conflict is naked economic terrorism, economic chauvinism, and economic bullying," Zhang said, stressing that China opposes the systematic use of sanctions, tariffs and protectionism.

"There is no winner in a trade war," he warned.

China has hit back with its own tariff increase on $60 billion in US products that will take effect Saturday, while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key resource used to make hi-tech products.

Watch- US-China Trade War: No End In Sight

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TV debate

Meanwhile, state media and officials have stepped up the rhetoric as the Communist Party digs in for what could be a long fight with the United States.

An anchor for the English-language state broadcaster China Global Television Network (CGTN) even held a rare debate on Thursday with a presenter from Fox Business Network to discuss the trade war after jousting on social media.

The debate between CGTN's Liu Xin and Fox Business's Trish Regan was civil, with the American journalist saying "I appreciate you being here" and the Chinese anchor inviting her to come to China, adding "I'll take you around".

But China's propaganda apparatus has hardened the tone.

The party's mouthpiece, The People's Daily, warned in an editorial on Wednesday that rare earths could be used as a counter-measure, adding that the US shouldn't "say we didn't warn you."

China produces more than 95 per cent of the world's rare earths, and the United States relies on the Asian superpower for upwards of 80 percent of its imports.

"It is unacceptable for any country to use rare earth products exported by China to curb and suppress China's development," commerce ministry spokesman Gao Feng said Thursday.

US Secretary of State Mike Pompeo asked about the rare earths threat during an interview, said that Americans have already "lost and suffered for decades under the current rules" and that Trump's "singular focus is to push back" on China.

He renewed his attack on Huawei, saying there was a "deep connectivity" between the company and the Chinese state.

"If it's the case that the Chinese Communist Party wanted to get information from technology that was in the possession of Huawei, it is almost certainly the case that Huawei would provide that to them," he told the Fox Business Network.

Huawei has rejected the accusations and on Tuesday filed a motion for summary judgment in a US court, hoping it would swiftly win a lawsuit against US legislation that bars federal agencies from using the company's equipment.

"You have seen that for some time, the US government has tried very hard to fabricate various topics, misleading the public in the US or in other countries of the international community, in order to suppress Huawei," Chinese foreign ministry spokesman Lu Kang told reporters.

Russia, China get closer

While Washington and Beijing spar, Xi is preparing to meet with President Vladimir Putin from June 5 to June 7 as the neighbouring giants forge closer ties.

"This trade conflict will also have a serious negative impact on the development and revival of the global economy," Zhang said.

China and Russia have broad consensus and common interests on the trade war issue, and the two countries will "certainly" strengthen their economic cooperation, Zhang said.

"We will certainly respond to various external challenges, do what we have to do, develop our economies, and constantly improve the living standards of our two peoples," he said.

Watch:&nbsp;China's utmost sincerity in trade talks a sign of strength

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&nbsp;

China accused the United States of "naked economic terrorism" on Thursday as Beijing ramps up the rhetoric in their trade war. The world's top two economies are at loggerheads as trade talks have apparently stalled, with US President Donald Trump hiking tariffs on $200 billion in Chinese goods earlier this month and blacklisting telecoms giant Huawei.

China accused the United States of "naked economic terrorism" on Thursday as Beijing ramps up the rhetoric in their trade war. The world's top two economies are at loggerheads as trade talks have apparently stalled, with US President Donald Trump hiking tariffs on $200 billion in Chinese goods earlier this month and blacklisting telecoms giant Huawei. "We are against the trade war, but we are not afraid of it," vice foreign minister Zhang Hanhui said at a press briefing to preview President Xi Jinping's trip to Russia next week. "This premeditated instigation of a trade conflict is naked economic terrorism, economic chauvinism, and economic bullying," Zhang said, stressing that China opposes the systematic use of sanctions, tariffs and protectionism. "There is no winner in a trade war," he warned. China has hit back with its own tariff increase on $60 billion in US products that will take effect Saturday, while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key resource used to make hi-tech products. Watch- US-China Trade War: No End In Sight × TV debate Meanwhile, state media and officials have stepped up the rhetoric as the Communist Party digs in for what could be a long fight with the United States. An anchor for the English-language state broadcaster China Global Television Network (CGTN) even held a rare debate on Thursday with a presenter from Fox Business Network to discuss the trade war after jousting on social media. The debate between CGTN's Liu Xin and Fox Business's Trish Regan was civil, with the American journalist saying "I appreciate you being here" and the Chinese anchor inviting her to come to China, adding "I'll take you around". But China's propaganda apparatus has hardened the tone. The party's mouthpiece, The People's Daily, warned in an editorial on Wednesday that rare earths could be used as a counter-measure, adding that the US shouldn't "say we didn't warn you." China produces more than 95 per cent of the world's rare earths, and the United States relies on the Asian superpower for upwards of 80 percent of its imports. "It is unacceptable for any country to use rare earth products exported by China to curb and suppress China's development," commerce ministry spokesman Gao Feng said Thursday. US Secretary of State Mike Pompeo asked about the rare earths threat during an interview, said that Americans have already "lost and suffered for decades under the current rules" and that Trump's "singular focus is to push back" on China. He renewed his attack on Huawei, saying there was a "deep connectivity" between the company and the Chinese state. "If it's the case that the Chinese Communist Party wanted to get information from technology that was in the possession of Huawei, it is almost certainly the case that Huawei would provide that to them," he told the Fox Business Network. Huawei has rejected the accusations and on Tuesday filed a motion for summary judgment in a US court, hoping it would swiftly win a lawsuit against US legislation that bars federal agencies from using the company's equipment. "You have seen that for some time, the US government has tried very hard to fabricate various topics, misleading the public in the US or in other countries of the international community, in order to suppress Huawei," Chinese foreign ministry spokesman Lu Kang told reporters. Russia, China get closer While Washington and Beijing spar, Xi is preparing to meet with President Vladimir Putin from June 5 to June 7 as the neighbouring giants forge closer ties. "This trade conflict will also have a serious negative impact on the development and revival of the global economy," Zhang said. China and Russia have broad consensus and common interests on the trade war issue, and the two countries will "certainly" strengthen their economic cooperation, Zhang said. "We will certainly respond to various external challenges, do what we have to do, develop our economies, and constantly improve the living standards of our two peoples," he said. Watch: China's utmost sincerity in trade talks a sign of strength ×

China accuses US of 'naked economic terrorism'

China has demonstrated more than enough sincerity to reach a mutually beneficial deal and end trade tensions with the United States. However, trapped in hegemonic ideology, the U.S. has responded by unilateral and protectionist tariff hikes that put world economy in danger, according to a commentary published by China's Xinhua News Agency on Sunday.

China's utmost sincerity in trade talks a sign of strength

Who pays Trump's tariffs? China, US customers or companies

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers.

Gita Gopinath, the International Monetary Fund's chief economist, directly refuted President Donald Trump's claim that tariffs are paid by China and provide a windfall for the US treasury, and that his aggressive posture will help reduce the US trade deficit.

She and her co-authors warned in a blog post that the economic damage will be even worse if Trump goes through with the threat to impose steep tariffs on all goods imported from China, as that "will subtract about one-third of a percentage point of global GDP in the short term."

Optimism was high earlier this month that a deal was within striking distance but tensions erupted after Trump accused Beijing of backtracking on its commitments made over the year of negotiations.

He then more than doubled tariffs on $200 billion in Chinese goods to 25 per cent and threatened to hit the remaining $300 billion in products imported each year with duties at the same level.

"Consumers in the US and China are unequivocally the losers from trade tensions," Gopinath stated, noting that the "tariff revenue collected has been borne almost entirely by US importers."

IMF chief Christine Lagarde and other fund officials have repeatedly raised concerns about the trade war but the blog post quantified the realized and expected damage, presenting the case with greater urgency.

Trump says a primary goal of the aggressive tariff strategy is to reduce the trade imbalance with China, which totaled $379 billion last year.

But Gopinath argues that while the tensions have damaged both countries, reducing overall trade and hurting companies, "the bilateral trade deficit remains broadly unchanged."

'Delicate year'

Meanwhile, total US imports have not changed significantly since importers simply shifted their purchases to other countries.

"While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains and jeopardize the projected recovery in global growth in 2019," she warned in the blog post.

"This type of scenario is among the reasons why we referred to 2019 as a delicate year for the global economy."

In addition, if tariffs escalate this will make a host of consumer goods less affordable, "harming low-income households disproportionately."

A growing number of US companies and industries have come out to urge Trump to dial back the confrontation, including major shoe manufacturers and retailers who say new tariffs would be "catastrophic."

But Trump has not been receptive to concerns of business executives, nor research on the harm being done.

The New York Federal Reserve Bank issued research Thursday showing the total annual cost of the new round of tariffs to a typical household would rise to $831 from $132 in 2018.

"In sum, according to our estimates, these higher tariffs are likely to create large economic distortions," the study showed.

No new talks have been scheduled between Beijing and Washington, and China earlier Thursday accused the United States of "bullying," and called for a show of "sincerity" before negotiations can resume.

Foreign Minister Wang Yi on Wednesday warned that Beijing was ready to "fight to the very end."

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers.

The IMF sounded the alarm on Thursday about the escalating US-China trade war, warning it will "jeopardize" 2019 global growth, undermine confidence and raise prices for consumers. Gita Gopinath, the International Monetary Fund's chief economist, directly refuted President Donald Trump's claim that tariffs are paid by China and provide a windfall for the US treasury, and that his aggressive posture will help reduce the US trade deficit. She and her co-authors warned in a blog post that the economic damage will be even worse if Trump goes through with the threat to impose steep tariffs on all goods imported from China, as that "will subtract about one-third of a percentage point of global GDP in the short term." Optimism was high earlier this month that a deal was within striking distance but tensions erupted after Trump accused Beijing of backtracking on its commitments made over the year of negotiations. He then more than doubled tariffs on $200 billion in Chinese goods to 25 per cent and threatened to hit the remaining $300 billion in products imported each year with duties at the same level. "Consumers in the US and China are unequivocally the losers from trade tensions," Gopinath stated, noting that the "tariff revenue collected has been borne almost entirely by US importers." IMF chief Christine Lagarde and other fund officials have repeatedly raised concerns about the trade war but the blog post quantified the realized and expected damage, presenting the case with greater urgency. Trump says a primary goal of the aggressive tariff strategy is to reduce the trade imbalance with China, which totaled $379 billion last year. But Gopinath argues that while the tensions have damaged both countries, reducing overall trade and hurting companies, "the bilateral trade deficit remains broadly unchanged." 'Delicate year' Meanwhile, total US imports have not changed significantly since importers simply shifted their purchases to other countries. "While the impact on global growth is relatively modest at this time, the latest escalation could significantly dent business and financial market sentiment, disrupt global supply chains and jeopardize the projected recovery in global growth in 2019," she warned in the blog post. "This type of scenario is among the reasons why we referred to 2019 as a delicate year for the global economy." In addition, if tariffs escalate this will make a host of consumer goods less affordable, "harming low-income households disproportionately." A growing number of US companies and industries have come out to urge Trump to dial back the confrontation, including major shoe manufacturers and retailers who say new tariffs would be "catastrophic." But Trump has not been receptive to concerns of business executives, nor research on the harm being done. The New York Federal Reserve Bank issued research Thursday showing the total annual cost of the new round of tariffs to a typical household would rise to $831 from $132 in 2018. "In sum, according to our estimates, these higher tariffs are likely to create large economic distortions," the study showed. No new talks have been scheduled between Beijing and Washington, and China earlier Thursday accused the United States of "bullying," and called for a show of "sincerity" before negotiations can resume. Foreign Minister Wang Yi on Wednesday warned that Beijing was ready to "fight to the very end."

IMF warns US-China trade war will 'jeopardize' 2019 global growth

The US has hit China where it hurts by going after its <a href="https://www.wionews.com/world/us-department-of-homeland-security-warns-of-data-threat-from-chinese-made-drones-220524">telecom champion Huawei</a>, but Beijing's control of the global supply of rare earths used in smartphones and electric cars gives it a powerful weapon in their escalating tech war.

A seemingly routine visit by President Xi Jinping to a Chinese rare earths company this week is being widely read as an obvious threat that Beijing is standing ready for action.

"We should firmly grasp the strategic basis of technological innovation, master more key core technologies and seize the commanding heights of industry development," Xi said during the visit, the official Xinhua news agency reported Wednesday.

"Rare earth is not only an important strategic resource, but also a non-renewable resource," he added, in comments likely to further fuel speculation.

However, analysts say China appears apprehensive to target the minerals just yet, possibly fearful of shooting itself in the foot by hastening a global search for alternative supplies of the commodities.

Watch: Huawei says it's a 'victim of bullying by the US administration'

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Xi's inspection tour "is no accident, this didn't happen by chance," said Li Mingjiang, China programme coordinator at the Rajaratnam School of International Studies (RSIS) in Singapore.

"At this moment, clearly the policy circles in China are considering the possibility of using a rare earth exports ban as a policy weapon against the US."

The United States last week threatened to cut supplies of US technology needed by Chinese telecom champion Huawei, which Washington suspects is in bed with China's military.

The US move has fanned speculation that Xi could impose retaliatory measures and in an indication of the importance of rare earths to the US, Washington did not include them in a tariffs increase on Chinese goods this month.

China has leverage

China occupies a commanding position, producing more than 95 per cent of the world's rare earths, and the United States relies on China for upwards of 80 per cent of its imports.

Rare earths are 17 elements critical to manufacturing everything from smartphones and televisions to cameras and lightbulbs.

That gives Beijing tremendous leverage in what is shaping up largely as a battle between the US and China over who will own the future of high-tech.

"China could shut down nearly every automobile, computer, smartphone and aircraft assembly line outside of China if they chose to embargo these materials," James Kennedy, president of ThREE Consulting, wrote Tuesday in National Defense, a US industry publication.

China has been accused of using its rare earth leverage for political reasons before.

Japanese industry sources said it temporarily cut off exports in 2010 as a territorial row flared between the Asian rivals, charges that Beijing denied.

In 2014, the World Trade Organization ruled the country had violated global trade rules by restricting exports of the minerals.&nbsp;

The case was brought by the United States, European Union and Japan, which accused China of curbing exports to give its tech companies an edge over foreign rivals. China has cited environmental damage from mining and the need to conserve supplies as the reason for any past limits on output.

While disruptive, any leverage gained from a supply block may be short-lived, experts said.

"This would accelerate moves to find alternative supply sources," said Kokichiro Mio, who studies China's economy at NLI Research Institute.

Empty threat?

China is not the only country with sizeable reserves of rare earths.

The United States Geological Survey estimated last year there were 120 million tons of deposits worldwide including 44 million in China, 22 million in Brazil and 18 million in Russia.

China is the leading producer partly because the environmental risks deter some countries from harvesting their own deposits. Mining rare earths creates toxic waste and the potential release of harmful radioactive tailings.

"There is a possibility that China would go ahead (with export curbs) but chances are what we are seeing now is just a threat," Mio said.

"The US would be in trouble over a short period of time. But it is unlikely that they (China) want to pour oil on the flames."

During Monday's visit, Xi was accompanied by Vice Premier Liu He, who has led China in fraught trade negotiations with Washington -- a fact not lost on China-watchers.

State media coverage of the visit was dry, but a commentary on a social media account run by the Communist Party mouthpiece, the People's Daily, stressed China's dominance in the global supply chain and the relative paucity of US output.

Meanwhile, cutting off the United States would mark a sharp escalation that Beijing may not have the stomach for, said Li of the RSIS.

"The difference is the US is targeting specific Chinese companies. If China targets the US as a country... that may be regarded by the US and the world as a significant escalation of the trade war," he said.

The US has hit China where it hurts by going after its telecom champion Huawei, but Beijing's control of the global supply of rare earths used in smartphones and electric cars gives it a powerful weapon in their escalating tech war.

The US has hit China where it hurts by going after its telecom champion Huawei, but Beijing's control of the global supply of rare earths used in smartphones and electric cars gives it a powerful weapon in their escalating tech war. A seemingly routine visit by President Xi Jinping to a Chinese rare earths company this week is being widely read as an obvious threat that Beijing is standing ready for action. "We should firmly grasp the strategic basis of technological innovation, master more key core technologies and seize the commanding heights of industry development," Xi said during the visit, the official Xinhua news agency reported Wednesday. "Rare earth is not only an important strategic resource, but also a non-renewable resource," he added, in comments likely to further fuel speculation. However, analysts say China appears apprehensive to target the minerals just yet, possibly fearful of shooting itself in the foot by hastening a global search for alternative supplies of the commodities. Watch: Huawei says it's a 'victim of bullying by the US administration' × Xi's inspection tour "is no accident, this didn't happen by chance," said Li Mingjiang, China programme coordinator at the Rajaratnam School of International Studies (RSIS) in Singapore. "At this moment, clearly the policy circles in China are considering the possibility of using a rare earth exports ban as a policy weapon against the US." The United States last week threatened to cut supplies of US technology needed by Chinese telecom champion Huawei, which Washington suspects is in bed with China's military. The US move has fanned speculation that Xi could impose retaliatory measures and in an indication of the importance of rare earths to the US, Washington did not include them in a tariffs increase on Chinese goods this month. China has leverage China occupies a commanding position, producing more than 95 per cent of the world's rare earths, and the United States relies on China for upwards of 80 per cent of its imports. Rare earths are 17 elements critical to manufacturing everything from smartphones and televisions to cameras and lightbulbs. That gives Beijing tremendous leverage in what is shaping up largely as a battle between the US and China over who will own the future of high-tech. "China could shut down nearly every automobile, computer, smartphone and aircraft assembly line outside of China if they chose to embargo these materials," James Kennedy, president of ThREE Consulting, wrote Tuesday in National Defense, a US industry publication. China has been accused of using its rare earth leverage for political reasons before. Japanese industry sources said it temporarily cut off exports in 2010 as a territorial row flared between the Asian rivals, charges that Beijing denied. In 2014, the World Trade Organization ruled the country had violated global trade rules by restricting exports of the minerals. The case was brought by the United States, European Union and Japan, which accused China of curbing exports to give its tech companies an edge over foreign rivals. China has cited environmental damage from mining and the need to conserve supplies as the reason for any past limits on output. While disruptive, any leverage gained from a supply block may be short-lived, experts said. "This would accelerate moves to find alternative supply sources," said Kokichiro Mio, who studies China's economy at NLI Research Institute. Empty threat? China is not the only country with sizeable reserves of rare earths. The United States Geological Survey estimated last year there were 120 million tons of deposits worldwide including 44 million in China, 22 million in Brazil and 18 million in Russia. China is the leading producer partly because the environmental risks deter some countries from harvesting their own deposits. Mining rare earths creates toxic waste and the potential release of harmful radioactive tailings. "There is a possibility that China would go ahead (with export curbs) but chances are what we are seeing now is just a threat," Mio said. "The US would be in trouble over a short period of time. But it is unlikely that they (China) want to pour oil on the flames." During Monday's visit, Xi was accompanied by Vice Premier Liu He, who has led China in fraught trade negotiations with Washington -- a fact not lost on China-watchers. State media coverage of the visit was dry, but a commentary on a social media account run by the Communist Party mouthpiece, the People's Daily, stressed China's dominance in the global supply chain and the relative paucity of US output. Meanwhile, cutting off the United States would mark a sharp escalation that Beijing may not have the stomach for, said Li of the RSIS. "The difference is the US is targeting specific Chinese companies. If China targets the US as a country... that may be regarded by the US and the world as a significant escalation of the trade war," he said.

Fears rise China could weaponise rare earths in US tech war

Imposition on tariffs on goods imported from China will have a negative impact on the <a href="https://www.wionews.com/world/trump-says-he-feels-us-china-trade-talks-going-to-be-very-successful-218515">United States</a> itself and the rest of the world and it is US consumers and businesses that will ultimately have to pay for the additional tariffs imposed by the United States to goods imported from <a href="https://www.wionews.com/world/there-is-no-clash-between-different-civilisations-says-president-xi-amid-us-china-trade-war-218993">China</a>, said expert on international trade on Wednesday.

The expert made the remarks during an interview with the China Central Television (CCTV) in response to the decision by the US administration of President Donald Trump to increase the additional tariffs on 200 billion US&nbsp;dollars' worth of Chinese goods from 10 per cent to 25 per cent on May 10, and has threatened to raise tariffs on more Chinese imports.

Brian Peck, director of the Center for Transnational Law and Business with the University of Southern California's Gould School of Law said: "Despite what President Trump said, claiming that the Chinese pay the tariff on Chinese imports to the United States, it's, in fact, US&nbsp;consumers and businesses that have to pay them. Tariffs are tax, the tax on imports, so the receivers of those goods are the ones that have to pay the tax. It US consumers and businesses."

He said,&nbsp;"These are things consumers buy on a daily basis and they are going to have a significant price increase because of these tariff raises. So that's going to have a negative impact on consumer spending; business investment decisions will have to put on hold; global supply chains also can be negatively affected. So the longer it prolongs, the more of negative impact will have on the US&nbsp;economy."

Peck said, "I think the other sector that is deeply hurt by these tariffs is the US&nbsp;farmers, especially soybean farmers, because they are a losing tremendous amount of sales to the Chinese market, it has been replaced by other suppliers from other parts of the world. So now there is an immediate negative impact on farmers, but over the long term, they may have lost its market for good."

Peck said, "The International Monetary Fund, the IMF, has reported that global expansion decreased dramatically when this tariff war started last year. And its expected growth rate for this year has been significantly reduced because of the prolonged trade war," he added.

Imposition on tariffs on goods imported from China will have a negative impact on the United States itself and the rest of the world and it is US consumers and businesses that will ultimately have to pay for the additional tariffs imposed by the United States to goods imported from China, said expert on international trade on Wednesday.

Imposition on tariffs on goods imported from China will have a negative impact on the United States itself and the rest of the world and it is US consumers and businesses that will ultimately have to pay for the additional tariffs imposed by the United States to goods imported from China, said expert on international trade on Wednesday. The expert made the remarks during an interview with the China Central Television (CCTV) in response to the decision by the US administration of President Donald Trump to increase the additional tariffs on 200 billion US dollars' worth of Chinese goods from 10 per cent to 25 per cent on May 10, and has threatened to raise tariffs on more Chinese imports. Brian Peck, director of the Center for Transnational Law and Business with the University of Southern California's Gould School of Law said: "Despite what President Trump said, claiming that the Chinese pay the tariff on Chinese imports to the United States, it's, in fact, US consumers and businesses that have to pay them. Tariffs are tax, the tax on imports, so the receivers of those goods are the ones that have to pay the tax. It US consumers and businesses." He said, "These are things consumers buy on a daily basis and they are going to have a significant price increase because of these tariff raises. So that's going to have a negative impact on consumer spending; business investment decisions will have to put on hold; global supply chains also can be negatively affected. So the longer it prolongs, the more of negative impact will have on the US economy." Peck said, "I think the other sector that is deeply hurt by these tariffs is the US farmers, especially soybean farmers, because they are a losing tremendous amount of sales to the Chinese market, it has been replaced by other suppliers from other parts of the world. So now there is an immediate negative impact on farmers, but over the long term, they may have lost its market for good." Peck said, "The International Monetary Fund, the IMF, has reported that global expansion decreased dramatically when this tariff war started last year. And its expected growth rate for this year has been significantly reduced because of the prolonged trade war," he added.

US consumers, businesses to pay for tariffs on Chinese goods: Expert

US farmers who are major exporters of pork and soy, are caught in the middle of President Donald Trump's <a href="https://www.wionews.com/videos/gravitas-trade-war-calm-amidst-storm-218799">trade wars</a>.

And farmers along with the industries that support them, are also key voters. So with 18 months to go before the presidential election, Trump is hoping to put them at ease and keep their support.

But as trade barriers continue to bite deeper into an industry that was already suffering low prices and falling income, there are signs of mounting frustration.

Also read:&nbsp;<a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">Explaining the US-China trade war which grabbed spotlight in 2018</a>

"Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now," Trump said Tuesday on Twitter.&nbsp;

He said he hoped China would "do us the honor" of continuing to buy US farm exports but even if they do not, the government "will be making up the difference" by buying crops to prop up prices.

The tweets came a day after China announced it was raising tariffs on $60 billion in US agricultural and manufactured goods to retaliate for Trump's decision last week to raise tariffs on $200 billion in Chinese merchandise.

Rural areas are generally more conservative and favorable to Trump, but they have been shaken by the conflict that has brought soy bean exports to China in particular to a screeching halt.&nbsp;

Last year's exports fell by 75 per cent from 2017, according to Commerce Department figures.

And over the last year, they have been targeted not only by China but also the European Union, Canada and Mexico.

For now, while many continue to support Trump, others "are not so sure," according to Will Rodger, head of communications for the American Farm Bureau Federation.

"We don't have hard numbers that tell us exactly how strong support or opposition may be but our gut feeling is most farmers still support the president since they like many of his policies across the board," he told AFP in an email.

Sid Ready, a farmer in Scribner, Nebraska, says the trade war has hurt but farmers were hanging in there.

"We understand it and I think farmers are pretty darn resilient," he said. "In the long run, we hope it works."

Their patience has limits, Rodger said, as revenues have been falling for six years due to global oversupply.

From a record $123.4 billion in 2013, farm incomes had fallen by about half as of last year to $63.1 billion, according to the US Department of Agriculture.

Many farmers in the Midwestern US breadbasket also have been devastated by floods that destroyed crops and prevented planting.

The American Soybean Association says it generally supports the Trump administration's trade objectives, just not the means used to reach them.

'We always win'

Soy farmers are "frustrated" that Chinese and US negotiators have been unable to strike a bargain and worry their entire business is in danger.

"With depressed prices and unsold stocks expected to double by the 2019 harvest, soybean farmers are not willing to be collateral damage in an endless tariff war," ASA President Davie Stephens said in a statement Monday.

Many fear their Chinese customers, who once bought about a third of the US soy crop, may soon buy even more from Brazil instead.

The Chinese export market for soy took more than 40 years to develop, and as the trade conflict persists "it will become increasingly difficult to recover."

Other buyers, like the European Union, may step in to fill the gap left by China. Still, about two thirds of global soy exports are destined for China.

In his Tuesday tweets, Trump said the "massive tariffs" currently in place will pay for government bailouts for suffering farms.

Last week, he suggested the government could purchase the crops and send it as food aid to poor nations.

In July 2018, the government unveiled a $12 billion bailout fund and US farmers already receive about $20 billion in annual assistance through various aid programs.

And the National Pork Producer's Council said last week it "welcomes the offer of assistance from President Trump."

"We stand ready to work with the USDA to facilitate US pork exports as food aid to a number of nations," NPCC President David Herring said in a statement.

Exports now account for 26 per cent of all US pork production, of which a large share is normally shipped to China.

Trump on Tuesday called the US-China trade war a "little squabble" and predicted ultimate victory.

"We always win. We always win," he said.

US farmers who are major exporters of pork and soy, are caught in the middle of President Donald Trump's trade wars. And farmers along with the industries that support them, are also key voters.

US farmers who are major exporters of pork and soy, are caught in the middle of President Donald Trump's trade wars. And farmers along with the industries that support them, are also key voters. So with 18 months to go before the presidential election, Trump is hoping to put them at ease and keep their support. But as trade barriers continue to bite deeper into an industry that was already suffering low prices and falling income, there are signs of mounting frustration. Also read: Explaining the US-China trade war which grabbed spotlight in 2018 "Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now," Trump said Tuesday on Twitter. He said he hoped China would "do us the honor" of continuing to buy US farm exports but even if they do not, the government "will be making up the difference" by buying crops to prop up prices. The tweets came a day after China announced it was raising tariffs on $60 billion in US agricultural and manufactured goods to retaliate for Trump's decision last week to raise tariffs on $200 billion in Chinese merchandise. Rural areas are generally more conservative and favorable to Trump, but they have been shaken by the conflict that has brought soy bean exports to China in particular to a screeching halt. Last year's exports fell by 75 per cent from 2017, according to Commerce Department figures. And over the last year, they have been targeted not only by China but also the European Union, Canada and Mexico. For now, while many continue to support Trump, others "are not so sure," according to Will Rodger, head of communications for the American Farm Bureau Federation. "We don't have hard numbers that tell us exactly how strong support or opposition may be but our gut feeling is most farmers still support the president since they like many of his policies across the board," he told AFP in an email. Sid Ready, a farmer in Scribner, Nebraska, says the trade war has hurt but farmers were hanging in there. "We understand it and I think farmers are pretty darn resilient," he said. "In the long run, we hope it works." Their patience has limits, Rodger said, as revenues have been falling for six years due to global oversupply. From a record $123.4 billion in 2013, farm incomes had fallen by about half as of last year to $63.1 billion, according to the US Department of Agriculture. Many farmers in the Midwestern US breadbasket also have been devastated by floods that destroyed crops and prevented planting. The American Soybean Association says it generally supports the Trump administration's trade objectives, just not the means used to reach them. 'We always win' Soy farmers are "frustrated" that Chinese and US negotiators have been unable to strike a bargain and worry their entire business is in danger. "With depressed prices and unsold stocks expected to double by the 2019 harvest, soybean farmers are not willing to be collateral damage in an endless tariff war," ASA President Davie Stephens said in a statement Monday. Many fear their Chinese customers, who once bought about a third of the US soy crop, may soon buy even more from Brazil instead. The Chinese export market for soy took more than 40 years to develop, and as the trade conflict persists "it will become increasingly difficult to recover." Other buyers, like the European Union, may step in to fill the gap left by China. Still, about two thirds of global soy exports are destined for China. In his Tuesday tweets, Trump said the "massive tariffs" currently in place will pay for government bailouts for suffering farms. Last week, he suggested the government could purchase the crops and send it as food aid to poor nations. In July 2018, the government unveiled a $12 billion bailout fund and US farmers already receive about $20 billion in annual assistance through various aid programs. And the National Pork Producer's Council said last week it "welcomes the offer of assistance from President Trump." "We stand ready to work with the USDA to facilitate US pork exports as food aid to a number of nations," NPCC President David Herring said in a statement. Exports now account for 26 per cent of all US pork production, of which a large share is normally shipped to China. Trump on Tuesday called the US-China trade war a "little squabble" and predicted ultimate victory. "We always win. We always win," he said.

Victory awaits in China trade war, Trump tells farmers

India fears China could soon start flooding excess steel into its market after the United States raised tariffs on Chinese products due to the escalating trade war between the world's two largest economies.

India worried of excess Chinese steel exports after US-China trade war

China announced higher tariffs on 60 billion US dollars worth of American goods in retaliation for US President Donald Trump's latest penalties on Chinese products, sending Wall Street into a slide.

China's hike of US tariffs sparks Asia stock losses

By raising tariffs on Chinese products, the United States will harm the interests of its businesses and consumers in the long term, according to Chinese economic experts at a seminar on China-US trade in Beijing on Sunday.

US raising tariffs will harm American businesses, consumers: Chinese experts

<a href="https://www.wionews.com/world/china-considers-cancelling-trade-talks-with-us-after-trump-vows-new-tariff-hike-report-216292">China</a> backtracked on substantial commitments it made during <a href="https://www.wionews.com/world/us-china-trade-dilemma-how-to-hold-beijings-feet-to-the-fire-216010">trade talks with the United States</a>, prompting President Donald Trump to impose additional tariffs on Chinese goods slated to go into effect on Friday, top US&nbsp;trade officials said on Monday.

Also read:&nbsp;<a href="https://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">Explaining the US-China trade war which grabbed spotlight in 2018</a>

The swift deterioration in negotiations between the world`s two largest economies hit global financial markets as investors faced the prospect of an escalation rather than an end to a 10-month-old trade war.

Trump tweeted on Sunday that he would <a href="https://www.wionews.com/world/trump-announces-higher-us-tariffs-on-china-goods-216186">raise tariffs on $200 billion worth of Chinese goods </a>to 25 per cent from 10 per cent by the end of the week, and would "soon" target the remaining Chinese imports with tariffs, sending stocks and oil prices lower on Monday.

US Trade Representative Robert Lighthizer, who has been an advocate for tough structural changes in China, said Beijing had reneged on commitments it had made previously that would have changed the agreement substantially.

"Over the course of the last week or so we have seen ... an erosion in commitments by China," Lighthizer told reporters. "That in our view is unacceptable."

Chinese Vice Premier Liu He is expected to be in Washington on Thursday and Friday of this week for further talks.

"We`re not breaking off talks at this point. But for now ... come Friday there will be tariffs in place," Lighthizer said.

Treasury Secretary Steven Mnuchin, considered to be less hawkish toward China, said China`s backtracking became clear with "new information" over the weekend. He declined to give specifics and said the US&nbsp;side had originally hoped to conclude a deal one way or the other this week.

"They were trying to go back on language that had been previously negotiated, very clear language, that had the potential of changing the deal dramatically," Mnuchin said. "The entire economic team ... are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week."

A spokesman at the Chinese Embassy in Washington did not immediately respond to queries about the US assertions.

"We are also in the process of understanding the relevant situation. What I can tell you is that China`s team is preparing to go to the United States for the discussions," Chinese Foreign Ministry spokesman Gene Shuang said earlier in Beijing. "We still hope the United States can work hard with China to meet each other halfway, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect."

TRUCE ENDS

Trump`s Sunday announcement abruptly ended a five-month truce in a trade war that has cost the two countries billions of dollars, slowed global growth and disrupted manufacturing supply chains and US farm exports.

Businesses, while largely supportive of Trump`s tough stance on China, want the tariffs to be lifted. Mnuchin said on Monday that the stock market reaction was not affecting US decisions on the trade talks.&nbsp;

A person familiar with the negotiations said the latest dispute came after the Chinese side sought to deal with policy changes through administrative and regulatory actions, not through changes to Chinese law as previously agreed.

"It undermines the core architecture of the deal," the person said, adding that not codifying the concessions would make it difficult to verify and enforce China`s compliance.

Speaking on condition of anonymity due to the sensitive nature of the talks, the person said that under China's system in which the Communist Party has ultimate control, changes in law are the only way to get even a small measure of certainty.

The United States is demanding sweeping changes to China`s economic policies, including better protection of US intellectual property, and ending forced technology transfers from US companies and cyber theft of American trade secrets.

Washington also wants more access to China`s vast markets for US businesses, curbs on industrial subsidies and increased purchases of American products.

Another source familiar with the situation said Trump had reiterated to advisers in recent days that he would walk away from a trade deal with China if it was not strong enough.

The United States imported about $539.5 billion in goods from China in 2018 and exported $120.3 billion, for a record trade deficit of $419.2 billion, according to US Census Bureau data.

Trump lashed out over the US trade deficit with China on Monday. "With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!" he tweeted. Trump has said that China was paying existing US tariffs on Chinese imports into the United States, but in reality, mostly US companies importing the goods pay the tariffs.

The United States currently has 25 per cent tariffs on $50 billion worth of Chinese machinery and technology goods, and 10 per cent tariffs on $200 billion worth of products ranging from computer modems and routers to furniture, lighting and building materials.

Negotiations on removing punitive US tariffs has been one of the remaining sticking points. China wants the tariffs to be removed, while US&nbsp;officials want to keep some, if not all, as part of any final deal to ensure China lives up to its commitments.

Mnuchin, who originally had called the talks in Beijing "productive," said Washington had been in the process of planning a summit between Trump and Chinese President Xi Jinping for a successful deal.

China backtracked on substantial commitments it made during trade talks with the United States, prompting President Donald Trump to impose additional tariffs on Chinese goods slated to go into effect on Friday, top US trade officials said on Monday.

China backtracked on substantial commitments it made during trade talks with the United States, prompting President Donald Trump to impose additional tariffs on Chinese goods slated to go into effect on Friday, top US trade officials said on Monday. Also read: Explaining the US-China trade war which grabbed spotlight in 2018 The swift deterioration in negotiations between the world`s two largest economies hit global financial markets as investors faced the prospect of an escalation rather than an end to a 10-month-old trade war. Trump tweeted on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25 per cent from 10 per cent by the end of the week, and would "soon" target the remaining Chinese imports with tariffs, sending stocks and oil prices lower on Monday. US Trade Representative Robert Lighthizer, who has been an advocate for tough structural changes in China, said Beijing had reneged on commitments it had made previously that would have changed the agreement substantially. "Over the course of the last week or so we have seen ... an erosion in commitments by China," Lighthizer told reporters. "That in our view is unacceptable." Chinese Vice Premier Liu He is expected to be in Washington on Thursday and Friday of this week for further talks. "We`re not breaking off talks at this point. But for now ... come Friday there will be tariffs in place," Lighthizer said. Treasury Secretary Steven Mnuchin, considered to be less hawkish toward China, said China`s backtracking became clear with "new information" over the weekend. He declined to give specifics and said the US side had originally hoped to conclude a deal one way or the other this week. "They were trying to go back on language that had been previously negotiated, very clear language, that had the potential of changing the deal dramatically," Mnuchin said. "The entire economic team ... are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week." A spokesman at the Chinese Embassy in Washington did not immediately respond to queries about the US assertions. "We are also in the process of understanding the relevant situation. What I can tell you is that China`s team is preparing to go to the United States for the discussions," Chinese Foreign Ministry spokesman Gene Shuang said earlier in Beijing. "We still hope the United States can work hard with China to meet each other halfway, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect." TRUCE ENDS Trump`s Sunday announcement abruptly ended a five-month truce in a trade war that has cost the two countries billions of dollars, slowed global growth and disrupted manufacturing supply chains and US farm exports. Businesses, while largely supportive of Trump`s tough stance on China, want the tariffs to be lifted. Mnuchin said on Monday that the stock market reaction was not affecting US decisions on the trade talks. A person familiar with the negotiations said the latest dispute came after the Chinese side sought to deal with policy changes through administrative and regulatory actions, not through changes to Chinese law as previously agreed. "It undermines the core architecture of the deal," the person said, adding that not codifying the concessions would make it difficult to verify and enforce China`s compliance. Speaking on condition of anonymity due to the sensitive nature of the talks, the person said that under China's system in which the Communist Party has ultimate control, changes in law are the only way to get even a small measure of certainty. The United States is demanding sweeping changes to China`s economic policies, including better protection of US intellectual property, and ending forced technology transfers from US companies and cyber theft of American trade secrets. Washington also wants more access to China`s vast markets for US businesses, curbs on industrial subsidies and increased purchases of American products. Another source familiar with the situation said Trump had reiterated to advisers in recent days that he would walk away from a trade deal with China if it was not strong enough. The United States imported about $539.5 billion in goods from China in 2018 and exported $120.3 billion, for a record trade deficit of $419.2 billion, according to US Census Bureau data. Trump lashed out over the US trade deficit with China on Monday. "With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!" he tweeted. Trump has said that China was paying existing US tariffs on Chinese imports into the United States, but in reality, mostly US companies importing the goods pay the tariffs. The United States currently has 25 per cent tariffs on $50 billion worth of Chinese machinery and technology goods, and 10 per cent tariffs on $200 billion worth of products ranging from computer modems and routers to furniture, lighting and building materials. Negotiations on removing punitive US tariffs has been one of the remaining sticking points. China wants the tariffs to be removed, while US officials want to keep some, if not all, as part of any final deal to ensure China lives up to its commitments. Mnuchin, who originally had called the talks in Beijing "productive," said Washington had been in the process of planning a summit between Trump and Chinese President Xi Jinping for a successful deal.

China reneged on trade commitments, sparking Trump tariff hike: US officials

President Donald Trump on Friday said he is confident the United States can forge a <a href="http://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">trade deal with China </a>but added that he thinks his country would do very well with or without an agreement with the world's second-largest economy.

Asked if he was still confident he could get a deal with China, "Sure, I'm confident, but if we don't make a very good deal for our country, I wouldn't make a deal," Trump said.

Asked about a report that China was not positive about a trade deal and that a meeting with President Xi Jinping might not happen, Trump said "I haven't heard that. I think we're doing well ... We'll do very well either way, with or without a deal."

Speaking on Bloomberg TV, White House economic adviser Larry Kudlow said the two countries could meet soon to continue hammering out a deal.

“It could go into April ... We made a lot of agreements here in Washington two weeks ago ... Now it has to go back and clear the top level of President Xi and the politburo in Beijing ... That’s the key – not the timing, not even the place – we have to get it right so it’s in America’s interest," Kudlow said.

China's exports tumbled the most in three years in February while imports fell for a third straight month, pointing to a further slowdown in the economy and stirring talk of a "trade recession", despite a spate of support measures.

The increasingly weak China data comes amid months of intense negotiations between Washington and Beijing aimed at ending their trade dispute. On Wednesday, the U.S. reported its goods trade deficit with China surged to an all-time high last year, underlining one of the key sticking points.

Chinese shares fell more than 4 percent on Friday after the data showed exports contracting, pushing global equities to three-week troughs.

President Donald Trump on Friday said he is confident the United States can forge a trade deal with China but added that he thinks his country would do very well with or without an agreement with the world's second-largest economy.

President Donald Trump on Friday said he is confident the United States can forge a trade deal with China but added that he thinks his country would do very well with or without an agreement with the world's second-largest economy. Asked if he was still confident he could get a deal with China, "Sure, I'm confident, but if we don't make a very good deal for our country, I wouldn't make a deal," Trump said. Asked about a report that China was not positive about a trade deal and that a meeting with President Xi Jinping might not happen, Trump said "I haven't heard that. I think we're doing well ... We'll do very well either way, with or without a deal." Speaking on Bloomberg TV, White House economic adviser Larry Kudlow said the two countries could meet soon to continue hammering out a deal. “It could go into April ... We made a lot of agreements here in Washington two weeks ago ... Now it has to go back and clear the top level of President Xi and the politburo in Beijing ... That’s the key – not the timing, not even the place – we have to get it right so it’s in America’s interest," Kudlow said. China's exports tumbled the most in three years in February while imports fell for a third straight month, pointing to a further slowdown in the economy and stirring talk of a "trade recession", despite a spate of support measures. The increasingly weak China data comes amid months of intense negotiations between Washington and Beijing aimed at ending their trade dispute. On Wednesday, the U.S. reported its goods trade deficit with China surged to an all-time high last year, underlining one of the key sticking points. Chinese shares fell more than 4 percent on Friday after the data showed exports contracting, pushing global equities to three-week troughs.

Trump 'confident' about getting a trade deal with China

US stocks rallied on Friday, helping Wall Street's major indexes advance for the fourth consecutive week, as increased hopes the United States and China would resolve their trade dispute lifted shares across sectors.

The market was boosted after a Bloomberg report said China sought to raise its annual goods imports from the United States by a combined value of more than $1 trillion in order to reduce its trade surplus to zero by 2024.

The news followed a report on Thursday that US Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports. A Treasury spokesman denied Mnuchin had made any such recommendation.

A strong rally in January has put the benchmark S&amp;P 500 index on track for its best monthly gain since March 2016. The S&amp;P 500 is now 8.9 per cent below its September 20 record close after dropping 19.8 per cent below that level - near the 20-per cent threshold commonly considered to confirm a bear market - on Christmas Eve.

"It's risk-on again," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "We've gotten an olive branch from China regarding trade. Obviously, there's been a very positive reaction from the market."

The Dow Jones Industrial Average rose 336.25 points, or 1.38 per cent, to 24,706.35, the S&amp;P 500 gained 34.75 points, or 1.32 per cent, to 2,670.71 and the Nasdaq Composite added 72.77 points, or 1.03 per cent, to 7,157.23.

For the week, the Dow rose 2.96 per cent, the S&amp;P 500 gained 2.87 per cent, and the Nasdaq added 2.66 per cent. All three indexes registered their biggest four-week percentage gain since October 2011.

US stock markets will be closed on Monday for the Martin Luther King Jr. holiday.

Industrial stocks rose 1.9 per cent, the second-most among the S&amp;P 500's major sectors, while the Philadelphia SE semiconductor index climbed 2.3 per cent. Both groups of shares have been sensitive to trade developments.

Technology stocks were the biggest boost to the S&amp;P 500, rising 1.5 per cent.

Even with the session's gains, relatively light trading volume during the week indicated some investors were still waiting on the sidelines. On Friday, volume on US exchanges was 7.99 billion shares, compared to the 8.44 billion average over the last 20 trading days.

"A lot of people have liquidated their positions coming into earnings so that they can react quickly as earnings come out," said Mark Otto, global market commentator at GTS in New York.

Analysts have lowered their fourth-quarter earnings forecast for S&amp;P 500 companies to 14.2 per cent year-over-year growth from 20.1 per cent estimated on October 1, according to IBES data from Refinitiv.

Shares of Schlumberger NV jumped 8.1 per cent after the oilfield services provider reported quarterly revenue that beat estimates.

Shares of Netflix Inc, however, fell 4.0 per cent after the video-streaming company forecast lower-than-expected revenue for the first quarter.

Advancing issues outnumbered declining ones on the NYSE by a 2.93-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favoured advancers.

The S&amp;P 500 posted three new 52-week highs and no new lows; the Nasdaq Composite recorded 32 new highs and 22 new lows. 
&nbsp;

For the week, the Dow rose 2.96 per cent, the S&P 500 gained 2.87 per cent, and the Nasdaq added 2.66 per cent.

US stocks rallied on Friday, helping Wall Street's major indexes advance for the fourth consecutive week, as increased hopes the United States and China would resolve their trade dispute lifted shares across sectors. The market was boosted after a Bloomberg report said China sought to raise its annual goods imports from the United States by a combined value of more than $1 trillion in order to reduce its trade surplus to zero by 2024. The news followed a report on Thursday that US Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports. A Treasury spokesman denied Mnuchin had made any such recommendation. A strong rally in January has put the benchmark S&P 500 index on track for its best monthly gain since March 2016. The S&P 500 is now 8.9 per cent below its September 20 record close after dropping 19.8 per cent below that level - near the 20-per cent threshold commonly considered to confirm a bear market - on Christmas Eve. "It's risk-on again," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "We've gotten an olive branch from China regarding trade. Obviously, there's been a very positive reaction from the market." The Dow Jones Industrial Average rose 336.25 points, or 1.38 per cent, to 24,706.35, the S&P 500 gained 34.75 points, or 1.32 per cent, to 2,670.71 and the Nasdaq Composite added 72.77 points, or 1.03 per cent, to 7,157.23. For the week, the Dow rose 2.96 per cent, the S&P 500 gained 2.87 per cent, and the Nasdaq added 2.66 per cent. All three indexes registered their biggest four-week percentage gain since October 2011. US stock markets will be closed on Monday for the Martin Luther King Jr. holiday. Industrial stocks rose 1.9 per cent, the second-most among the S&P 500's major sectors, while the Philadelphia SE semiconductor index climbed 2.3 per cent. Both groups of shares have been sensitive to trade developments. Technology stocks were the biggest boost to the S&P 500, rising 1.5 per cent. Even with the session's gains, relatively light trading volume during the week indicated some investors were still waiting on the sidelines. On Friday, volume on US exchanges was 7.99 billion shares, compared to the 8.44 billion average over the last 20 trading days. "A lot of people have liquidated their positions coming into earnings so that they can react quickly as earnings come out," said Mark Otto, global market commentator at GTS in New York. Analysts have lowered their fourth-quarter earnings forecast for S&P 500 companies to 14.2 per cent year-over-year growth from 20.1 per cent estimated on October 1, according to IBES data from Refinitiv. Shares of Schlumberger NV jumped 8.1 per cent after the oilfield services provider reported quarterly revenue that beat estimates. Shares of Netflix Inc, however, fell 4.0 per cent after the video-streaming company forecast lower-than-expected revenue for the first quarter. Advancing issues outnumbered declining ones on the NYSE by a 2.93-to-1 ratio; on Nasdaq, a 2.26-to-1 ratio favoured advancers. The S&P 500 posted three new 52-week highs and no new lows; the Nasdaq Composite recorded 32 new highs and 22 new lows.

Wall Street extends rally on US-China trade optimism

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday.

American and Chinese trade officials have until March 1 to resolve their <a href="http://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">trade war</a>, to prevent a sharp increase in punitive US duties on $200 billion in Chinese goods.

Treasury Secretary Steven Mnuchin raised the idea of revoking tariffs on some or all of the $250 billion in Chinese goods impacted, during discussions on the strategy for the current talks but the question has not yet reached the White House, according to The Journal.

The US stock market reacted favorably to the report, with equities prices closing higher after being flat for most of the day.

The talks with Beijing are being led by US Trade Representative Robert Lighthizer, who has taken a more hard line position on trade than Mnuchin.

The Treasury Department told AFP on that the trade talks with China were "nowhere near completion."

"Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China," a spokesperson working with the trade team said by email.

CNBC quoted a senior White House official involved in the trade talks saying that Trump had no incentive to offer concessions, and officials instead were focused on preparations for talks with Chinese Vice Premier Liu He set for January 30-31 in Washington.

US President Donald Trump tweeted January 8 that the talks with Beijing were "going very well!"

But the trade war has rattled stock markets in the months since, putting pressure on the White House to reach a resolution.

Trump launched the trade war last year and the two sides have since exchanged tit-for-tat tariffs on more than $360 billion in two-way trade.

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday.

US officials have considered lifting tariffs on Chinese imports to calm volatile stock markets and encourage Beijing to make concessions in current trade talks, The Wall Street Journal reported Thursday. American and Chinese trade officials have until March 1 to resolve their trade war, to prevent a sharp increase in punitive US duties on $200 billion in Chinese goods. Treasury Secretary Steven Mnuchin raised the idea of revoking tariffs on some or all of the $250 billion in Chinese goods impacted, during discussions on the strategy for the current talks but the question has not yet reached the White House, according to The Journal. The US stock market reacted favorably to the report, with equities prices closing higher after being flat for most of the day. The talks with Beijing are being led by US Trade Representative Robert Lighthizer, who has taken a more hard line position on trade than Mnuchin. The Treasury Department told AFP on that the trade talks with China were "nowhere near completion." "Neither Secretary Mnuchin nor Ambassador Lighthizer have made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China," a spokesperson working with the trade team said by email. CNBC quoted a senior White House official involved in the trade talks saying that Trump had no incentive to offer concessions, and officials instead were focused on preparations for talks with Chinese Vice Premier Liu He set for January 30-31 in Washington. US President Donald Trump tweeted January 8 that the talks with Beijing were "going very well!" But the trade war has rattled stock markets in the months since, putting pressure on the White House to reach a resolution. Trump launched the trade war last year and the two sides have since exchanged tit-for-tat tariffs on more than $360 billion in two-way trade.

US officials consider lifting China tariffs: Report

<a href="http://www.wionews.com/world/how-cold-is-the-moon-at-night-china-to-find-out-190033">China</a>’s exports rose 9.9 per cent in 2018, its strongest trade performance in seven years, despite growing disruptions from an escalating trade war with the United States, customs data showed on Monday.

Imports increased 15.8 per cent last year, resulting in a trade surplus of $351.76 billion, the country’s lowest since 2013.

The world’s largest trading nation got off to a strong start in 2018, but pressure on the economy started to build later in the year as the United States and China began imposing tariffs on each other’s goods and global demand started to cool.

The Customs office is expected to release trade numbers for December later in the day.

China’s export growth is expected to have eased for a second straight month in December as global demand weakened, raising pressure on Beijing as it tries to reach a trade deal with Washington.

Softening demand in China is already being felt around the world, with slowing sales of goods ranging from iPhones to automobiles adding to fears of cooling global growth.

Sources told Reuters last week that Beijing is planning to lower its economic growth target to 6-6.5 per cent this year after an expected 6.6 per cent in 2018, the slowest pace in 28 years.&nbsp;

Imports increased 15.8 per cent last year, resulting in a trade surplus of $351.76 billion, the country’s lowest since 2013.

China’s exports rose 9.9 per cent in 2018, its strongest trade performance in seven years, despite growing disruptions from an escalating trade war with the United States, customs data showed on Monday. Imports increased 15.8 per cent last year, resulting in a trade surplus of $351.76 billion, the country’s lowest since 2013. The world’s largest trading nation got off to a strong start in 2018, but pressure on the economy started to build later in the year as the United States and China began imposing tariffs on each other’s goods and global demand started to cool. The Customs office is expected to release trade numbers for December later in the day. China’s export growth is expected to have eased for a second straight month in December as global demand weakened, raising pressure on Beijing as it tries to reach a trade deal with Washington. Softening demand in China is already being felt around the world, with slowing sales of goods ranging from iPhones to automobiles adding to fears of cooling global growth. Sources told Reuters last week that Beijing is planning to lower its economic growth target to 6-6.5 per cent this year after an expected 6.6 per cent in 2018, the slowest pace in 28 years.

China posts strongest export growth in 7 years despite trade war

<a href="http://www.wionews.com/world/north-koreas-kim-discusses-expected-summit-with-trump-in-talks-in-china-report-189075">Kim Jong Un's train left Beijing </a>on Wednesday after the North Korean leader visited his key ally on a trip seen as a strategy session ahead of his expected summit with Donald Trump.

<a href="http://www.wionews.com/world/kim-jong-un-seeks-to-up-ante-with-xi-summit-analysts-189006">Kim arrived in Beijing on Tuesday </a>for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping.

The North Korean leader's <a href="http://www.wionews.com/world/kim-jong-un-on-4-day-visit-to-china-to-meet-president-xi-report-188901">motorcade was spotted arriving at the Beijing </a>central railway station early afternoon, and the train departed shortly after on a day-long ride back to the northeast border, according to AFP journalists.

The unannounced trip was largely shrouded in secrecy. Beyond confirming his presence in Beijing, no details have been provided by either North Korea or China on his schedule.

Kim met for one hour with Chinese President Xi Jinping on Tuesday - believed to be the North Korean leader's birthday - and the two later dined with their wives at Beijing's Great Hall of the People, according to South Korea's Yonhap news agency.

The meeting focused on Kim's expected meeting with Trump, according to Yonhap.

In a New Year speech, Kim warned that Pyongyang may change its approach to nuclear talks if Washington persists with sanctions.

Relations between China and North Korea had deteriorated in recent years over Pyongyang's nuclear activities, but Kim has made sure to keep Xi informed about his dealings with the United States and South Korea as ties appear to have warmed.

"In order to resist the high pressure of the US, he must communicate with Xi in advance to see what steps he can take to deal with Trump," Beijing-based independent political commentator Hua Po told AFP.

"Kim needs the support of Xi so as to ask the US to make substantial steps, such as providing assistance to North Korea and normalising relations with North Korea," Hua said.

Kim chose China for his maiden official trip abroad last year before holding meetings with South Korean President Moon Jae-in and Trump.

Trump said Sunday that the United States and North Korea are negotiating the location of their next summit.

Discussions between the US and North Korea over Pyongyang's nuclear arsenal have stalled since Kim and Trump's high-profile summit in Singapore in June where they issued a vaguely worded declaration about denuclearisation.

The United States insists that United Nations sanctions must remain in place until North Korea gives up its weapons, while Pyongyang wants them immediately eased. China also wants the sanctions to be relaxed.

But Chinese officials also likely want to impress on Kim — who has so far pursued only limited reforms to his statist economy — the benefits the giant Communist country has enjoyed in its transformation from an impoverished nation to economic powerhouse.

Yonhap, citing unidentified sources, reported that Kim toured a factory operated by medicine firm Tongrentang for about half an hour in an economic zone in the Chinese capital.

He then went to the Beijing Hotel where he was expected to have lunch with Xi before his departure.

"For North Korea itself, 2019 is his strategic turning point. If he wants to shift his focus to the development of the economy, he needs China's cooperation," said Lu Chao, a North Korea expert at China's Liaoning Academy of Social Sciences.

"China will also introduce some successful experiences to Kim to help North Korea achieve economic transformation and realise the denuclearisation of the peninsula as soon as possible," Lu told AFP.

In the New Year speech, Kim focused on North Korea's moribund economy, saying that improving people's lives was his top priority and tackling energy shortages was an urgent task.

Hua, the Beijing-based analyst, said changes in the economic model will affect politics, "which poses new challenges to his control over the country."

"For this point, he must ask for advice from China."

The visit coincided with negotiations between US and Chinese officials in Beijing to resolve a bruising trade war between the world's two biggest economies.

Some analysts say China could use its cooperation on the North Korean issue as a bargaining chip in the US trade talks.

But Hua said Kim's visit would have a "limited" effect on the trade negotiations.

"The Sino-US trade negotiations are a matter between China and the US. The weight of North Korea is limited and cannot play a decisive role," he said.

Kim arrived in Beijing on Tuesday for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping.

Kim Jong Un's train left Beijing on Wednesday after the North Korean leader visited his key ally on a trip seen as a strategy session ahead of his expected summit with Donald Trump. Kim arrived in Beijing on Tuesday for his fourth visit to Pyongyang's sole major diplomatic friend, reportedly visiting a factory and meeting President Xi Jinping. The North Korean leader's motorcade was spotted arriving at the Beijing central railway station early afternoon, and the train departed shortly after on a day-long ride back to the northeast border, according to AFP journalists. The unannounced trip was largely shrouded in secrecy. Beyond confirming his presence in Beijing, no details have been provided by either North Korea or China on his schedule. Kim met for one hour with Chinese President Xi Jinping on Tuesday - believed to be the North Korean leader's birthday - and the two later dined with their wives at Beijing's Great Hall of the People, according to South Korea's Yonhap news agency. The meeting focused on Kim's expected meeting with Trump, according to Yonhap. In a New Year speech, Kim warned that Pyongyang may change its approach to nuclear talks if Washington persists with sanctions. Relations between China and North Korea had deteriorated in recent years over Pyongyang's nuclear activities, but Kim has made sure to keep Xi informed about his dealings with the United States and South Korea as ties appear to have warmed. "In order to resist the high pressure of the US, he must communicate with Xi in advance to see what steps he can take to deal with Trump," Beijing-based independent political commentator Hua Po told AFP. "Kim needs the support of Xi so as to ask the US to make substantial steps, such as providing assistance to North Korea and normalising relations with North Korea," Hua said. Kim chose China for his maiden official trip abroad last year before holding meetings with South Korean President Moon Jae-in and Trump. Trump said Sunday that the United States and North Korea are negotiating the location of their next summit. Discussions between the US and North Korea over Pyongyang's nuclear arsenal have stalled since Kim and Trump's high-profile summit in Singapore in June where they issued a vaguely worded declaration about denuclearisation. The United States insists that United Nations sanctions must remain in place until North Korea gives up its weapons, while Pyongyang wants them immediately eased. China also wants the sanctions to be relaxed. But Chinese officials also likely want to impress on Kim — who has so far pursued only limited reforms to his statist economy — the benefits the giant Communist country has enjoyed in its transformation from an impoverished nation to economic powerhouse. Yonhap, citing unidentified sources, reported that Kim toured a factory operated by medicine firm Tongrentang for about half an hour in an economic zone in the Chinese capital. He then went to the Beijing Hotel where he was expected to have lunch with Xi before his departure. "For North Korea itself, 2019 is his strategic turning point. If he wants to shift his focus to the development of the economy, he needs China's cooperation," said Lu Chao, a North Korea expert at China's Liaoning Academy of Social Sciences. "China will also introduce some successful experiences to Kim to help North Korea achieve economic transformation and realise the denuclearisation of the peninsula as soon as possible," Lu told AFP. In the New Year speech, Kim focused on North Korea's moribund economy, saying that improving people's lives was his top priority and tackling energy shortages was an urgent task. Hua, the Beijing-based analyst, said changes in the economic model will affect politics, "which poses new challenges to his control over the country." "For this point, he must ask for advice from China." The visit coincided with negotiations between US and Chinese officials in Beijing to resolve a bruising trade war between the world's two biggest economies. Some analysts say China could use its cooperation on the North Korean issue as a bargaining chip in the US trade talks. But Hua said Kim's visit would have a "limited" effect on the trade negotiations. "The Sino-US trade negotiations are a matter between China and the US. The weight of North Korea is limited and cannot play a decisive role," he said.

Watch: North Korea's Kim ends China visit after meeting President Xi

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade.

The Dow and the Nasdaq ended Friday with their biggest weekly drop since the start of the global financial crisis as investors took fright over a government shutdown in Washington, President Donald Trump's public feuding with the Federal Reserve and the US-China trade war returning to the forefront.

With Tokyo closed for a public holiday on Monday, Hong Kong and Shanghai set the tone with both exchanges seeing losses in early trading. Sydney was up slightly while Seoul was down.

Mnuchin spent much of the weekend in damage control mode after multiple media outlets reported that Trump had privately asked cabinet members if he has the authority to fire Fed Chairman Jerome Powell.

Last week, the central bank hiked rates, infuriating Trump who has ignored the traditional respect for the Fed's independence, calling it "crazy", "out of control" and a greater economic threat than China.

Mnuchin denied the reports of Trump seeking Powell's scalp, tweeting on Saturday that the president told him: "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so."

The following day, Mnuchin announced he had called senior executives from six of the largest American banks to discuss the market turmoil and received assurances.

"The banks all confirmed ample liquidity is available for lending to consumer and business markets," the Treasury said in a statement attached to a tweet from Mnuchin announcing the calls.

"We continue to see strong economic growth in the US economy with robust activity from consumers and business," Mnuchin was quoted in the statement as saying, adding that he would convene a call with the President's Working Group on financial markets later Monday.

'More panic and fear'&nbsp;

Analysts expressed both surprise and alarm at Mnuchin's Sunday statement, saying it might do the opposite of calming current jitters.

"Nothing says don't panic like saying 'I'm calling the plunge protection team tomorrow'," Michael O'Rourke, JonesTrading's chief market strategist, told Bloomberg News.

"I honestly think that's the type of event that's going to startle markets and create more panic and fear when it's meant to create confidence."

Last week's turmoil in Washington which included a government shutdown that appears likely to last until at least Thursday and the abrupt resignation of Defense Secretary Jim Mattis&nbsp;has spooked markets worldwide.

Japan's Nikkei hit a fresh 15-month low on Friday with its fourth consecutive day of losses, while European bourses were flat or rising slightly.

Oil inched higher in Asian trade after crude-producing nations said they expect prices will arrest their recent slide and rebalance early next year when a deal on new production cuts takes effect.

However, analysts said prospects for a global economic slowdown in the coming year&nbsp;which would weaken crude demand&nbsp;and rising US shale output are dampening sentiment and limiting any rebound from the current 15-month lows.

Prices have plunged by around 40 per cent from four-year peaks reached in early October on concerns about oversupply and weaker demand.

In foreign exchange markets, the yen rose 0.2 per cent to 111.02 per dollar, the euro was up 0.1 per cent at $1.1379 and the pound was at $1.2658, a 0.1 per cent rise.

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade.

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade. The Dow and the Nasdaq ended Friday with their biggest weekly drop since the start of the global financial crisis as investors took fright over a government shutdown in Washington, President Donald Trump's public feuding with the Federal Reserve and the US-China trade war returning to the forefront. With Tokyo closed for a public holiday on Monday, Hong Kong and Shanghai set the tone with both exchanges seeing losses in early trading. Sydney was up slightly while Seoul was down. Mnuchin spent much of the weekend in damage control mode after multiple media outlets reported that Trump had privately asked cabinet members if he has the authority to fire Fed Chairman Jerome Powell. Last week, the central bank hiked rates, infuriating Trump who has ignored the traditional respect for the Fed's independence, calling it "crazy", "out of control" and a greater economic threat than China. Mnuchin denied the reports of Trump seeking Powell's scalp, tweeting on Saturday that the president told him: "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so." The following day, Mnuchin announced he had called senior executives from six of the largest American banks to discuss the market turmoil and received assurances. "The banks all confirmed ample liquidity is available for lending to consumer and business markets," the Treasury said in a statement attached to a tweet from Mnuchin announcing the calls. "We continue to see strong economic growth in the US economy with robust activity from consumers and business," Mnuchin was quoted in the statement as saying, adding that he would convene a call with the President's Working Group on financial markets later Monday. 'More panic and fear' Analysts expressed both surprise and alarm at Mnuchin's Sunday statement, saying it might do the opposite of calming current jitters. "Nothing says don't panic like saying 'I'm calling the plunge protection team tomorrow'," Michael O'Rourke, JonesTrading's chief market strategist, told Bloomberg News. "I honestly think that's the type of event that's going to startle markets and create more panic and fear when it's meant to create confidence." Last week's turmoil in Washington which included a government shutdown that appears likely to last until at least Thursday and the abrupt resignation of Defense Secretary Jim Mattis has spooked markets worldwide. Japan's Nikkei hit a fresh 15-month low on Friday with its fourth consecutive day of losses, while European bourses were flat or rising slightly. Oil inched higher in Asian trade after crude-producing nations said they expect prices will arrest their recent slide and rebalance early next year when a deal on new production cuts takes effect. However, analysts said prospects for a global economic slowdown in the coming year which would weaken crude demand and rising US shale output are dampening sentiment and limiting any rebound from the current 15-month lows. Prices have plunged by around 40 per cent from four-year peaks reached in early October on concerns about oversupply and weaker demand. In foreign exchange markets, the yen rose 0.2 per cent to 111.02 per dollar, the euro was up 0.1 per cent at $1.1379 and the pound was at $1.2658, a 0.1 per cent rise.

Asia stocks fall despite Mnuchin's weekend triage

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries.

The first step was taken by US President Donald Trump who announced increased tariffs on more than 1,300 Chinese industrial and other products, nine per cent of its total imports from China last year. There was no need to convince Trump who has long criticised China's trade practices. It was, in fact, a recurrent theme in his 2016 election campaign.

In response to Trump administration tariffs on Chinese goods, Beijing imposed levies on $50 billion worth of American imports, 36.7 per cent of its total imports from US in 2017. Among them was a 25 per cent tariff on soybeans, the single most valuable US farm export. US growers sold $12 billion worth to China last year alone.

Trump further escalated the trade dispute, threatening to identify Chinese imports worth $100 billion for a tariff increase. Trump's negotiating style, honed in his years as a real estate developer, is to take extreme positions to force concessions from his opponents. So far that approach has had mixed results at home and abroad.

A temporary truce came when Trump met with his Chinese counterpart President Xi Jinping on the sidelines of the G-20 summit in Buenos Aires on December 1 and agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the world's two biggest economies.

Trump and Xi agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March 2.

Since then, Beijing has resumed buying US soybeans, cut tariffs on imports of cars from the United States, and told its state refiners to buy more US oil. China also issued guidance to local governments dropping references to its "Made in China 2025" high-tech industrial development goals amid reports it was looking to replace the program aimed at rivaling US dominance in industries such as aerospace, robotics, semiconductors, new energy vehicles and artificial intelligence.

Trump took those as signs that "China wants to make a big and very comprehensive deal".

While Beijing claims that Washington is the aggressor and is spurring global protectionism, China's trading partners have complained for years that it abuses World Trade Organisation (WTO) rules and propagates unfair policies at home that lock foreign firms out of some sectors as domestic champions are being nurtured.

It is China's huge trade surplus with the United States that has attracted most of the Trump administration's ire. China ran a record $375.2 billion trade surplus with the United States in 2017 as the overall US trade deficit surged 12 per cent to $566 billion.

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries.

The global economy suffered a jolt in 2018 as world's two biggest economies - US and China - got involved in a trade war. Both the countries accuse each other of putting unfair tariffs on goods produced in respective countries. The first step was taken by US President Donald Trump who announced increased tariffs on more than 1,300 Chinese industrial and other products, nine per cent of its total imports from China last year. There was no need to convince Trump who has long criticised China's trade practices. It was, in fact, a recurrent theme in his 2016 election campaign. In response to Trump administration tariffs on Chinese goods, Beijing imposed levies on $50 billion worth of American imports, 36.7 per cent of its total imports from US in 2017. Among them was a 25 per cent tariff on soybeans, the single most valuable US farm export. US growers sold $12 billion worth to China last year alone. Trump further escalated the trade dispute, threatening to identify Chinese imports worth $100 billion for a tariff increase. Trump's negotiating style, honed in his years as a real estate developer, is to take extreme positions to force concessions from his opponents. So far that approach has had mixed results at home and abroad. A temporary truce came when Trump met with his Chinese counterpart President Xi Jinping on the sidelines of the G-20 summit in Buenos Aires on December 1 and agreed to stop escalating tit-for-tat tariffs that have disrupted the flow of hundreds of billions of dollars of goods between the world's two biggest economies. Trump and Xi agreed to launch new talks while the United States delayed a planned January 1 tariff increase until March 2. Since then, Beijing has resumed buying US soybeans, cut tariffs on imports of cars from the United States, and told its state refiners to buy more US oil. China also issued guidance to local governments dropping references to its "Made in China 2025" high-tech industrial development goals amid reports it was looking to replace the program aimed at rivaling US dominance in industries such as aerospace, robotics, semiconductors, new energy vehicles and artificial intelligence. Trump took those as signs that "China wants to make a big and very comprehensive deal". While Beijing claims that Washington is the aggressor and is spurring global protectionism, China's trading partners have complained for years that it abuses World Trade Organisation (WTO) rules and propagates unfair policies at home that lock foreign firms out of some sectors as domestic champions are being nurtured. It is China's huge trade surplus with the United States that has attracted most of the Trump administration's ire. China ran a record $375.2 billion trade surplus with the United States in 2017 as the overall US trade deficit surged 12 per cent to $566 billion.

Explaining the US-China trade war which grabbed spotlight in 2018

US&nbsp;President Donald Trump on Friday sounded optimistic&nbsp;about trade negotiations with China as two of his top economic advisers downplayed friction from the <a href="http://www.wionews.com/world/huawei-arrest-a-despicable-rogue-action-chinese-media-182128">arrest of a senior executive of Chinese telecom </a>equipment maker Huawei Technologies.

"China talks are going very well," Trump said on Twitter, without providing any details.

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<blockquote class="twitter-tweet" data-lang="en">
China talks are going very well!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1071030014123098112?ref_src=twsrc%5Etfw">December 7, 2018</a></blockquote>
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Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of US&nbsp;authorities would affect <a href="http://www.wionews.com/opinions/g20-summit-bring-a-truce-in-us-china-trade-relations-181105">US-China relations</a> or that it would cause a potential backlash against American firms operating in China.

<a href="http://www.wionews.com/world/arrest-of-huawei-cfo-throws-rare-spotlight-on-family-181953">Meng</a>, 46, the daughter of Huawei's founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated US&nbsp;sanctions against Iran.

Larry Kudlow, director of the White House's National Economic Council, told CNBC he did not believe Meng's arrest would "spill over" into the talks with China aimed at increasing Beijing's purchases of US&nbsp;farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China's policies on intellectual property and technology transfers.

Kudlow said the investigation of whether Huawei violated US&nbsp;sanctions against Iran was on a "separate track" from the trade talks and was a matter of national security and US&nbsp;law.

"You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that," Kudlow said of the Huawei case. "That was the case with other companies and will continue to be the case. These are issues of national security."

Continued concerns over US-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 per cent, with the Dow Jones Industrial Average falling 2.1 per cent and the S&amp;P 500 index down 1.9 per cent in afternoon trade.

White House trade adviser Peter Navarro told CNN that the US-China trade talks and the Huawei arrest "are two separate events," calling the timing of Meng's arrest a coincidence.

Navarro said the arrest was the result of "the bad actions of Huawei," adding there was a "frightening" risk that the Chinese government could use the company's products for spying.

"The timing was unusual, but the actions were legitimate."

Asked if the United States would walk away from trade talks if US-China differences were not resolved in 90 days, Navaro said: "It's not a question of walking away. It's a question of moving forward on the strategy, which is to simply raise the tariffs" on Chinese goods.

Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1.

"I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s a good action, he might - he might - be willing to extend the 90 days," Kudlow told CNBC.

He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies.

However, Kudlow said US Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

US President Donald Trump on Friday sounded optimistic about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies.

US President Donald Trump on Friday sounded optimistic about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies. "China talks are going very well," Trump said on Twitter, without providing any details. China talks are going very well! — Donald J. Trump (@realDonaldTrump) December 7, 2018 × Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of US authorities would affect US-China relations or that it would cause a potential backlash against American firms operating in China. Meng, 46, the daughter of Huawei's founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated US sanctions against Iran. Larry Kudlow, director of the White House's National Economic Council, told CNBC he did not believe Meng's arrest would "spill over" into the talks with China aimed at increasing Beijing's purchases of US farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China's policies on intellectual property and technology transfers. Kudlow said the investigation of whether Huawei violated US sanctions against Iran was on a "separate track" from the trade talks and was a matter of national security and US law. "You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that," Kudlow said of the Huawei case. "That was the case with other companies and will continue to be the case. These are issues of national security." Continued concerns over US-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 per cent, with the Dow Jones Industrial Average falling 2.1 per cent and the S&P 500 index down 1.9 per cent in afternoon trade. White House trade adviser Peter Navarro told CNN that the US-China trade talks and the Huawei arrest "are two separate events," calling the timing of Meng's arrest a coincidence. Navarro said the arrest was the result of "the bad actions of Huawei," adding there was a "frightening" risk that the Chinese government could use the company's products for spying. "The timing was unusual, but the actions were legitimate." Asked if the United States would walk away from trade talks if US-China differences were not resolved in 90 days, Navaro said: "It's not a question of walking away. It's a question of moving forward on the strategy, which is to simply raise the tariffs" on Chinese goods. Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1. "I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s a good action, he might - he might - be willing to extend the 90 days," Kudlow told CNBC. He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies. However, Kudlow said US Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

Trump upbeat on China talks; aides downplay Huawei arrest friction