The ongoing trade war between the <a href="https://www.wionews.com/world/imf-warns-us-china-trade-war-will-jeopardize-2019-global-growth-221117">US and China</a> offers an opportunity to India for boosting <a href="https://www.wionews.com/south-asia/india-rice-rates-dip-as-demand-slows-bangladesh-to-review-export-ban-211739">exports</a> of as many 350 <a href="https://www.wionews.com/business-economy/india-imposes-higher-customs-duty-on-28-us-products-will-come-into-effect-from-sunday-227455">products</a> such as chemicals and granite to these countries, a study by the Commerce Ministry has said.

The identification of these products is part of a study carried out by the ministry which states that the ongoing tariff or customs duties war between the <a href="https://www.wionews.com/world/asian-markets-tumble-over-intensifying-us-china-trade-tensions-223751">US and China</a> proves a big window of opportunity for enhancing India's exports to these two nations.

Both the US and China are imposing heavy import duties on each other's products, which has triggered a trade war kind of situation.

According to the study, as much 151 domestic products including diesel, X-ray tubes and certain chemicals have an outright advantage to displace the US exports to China.

Similarly, 203 Indian goods like rubber and graphite electrodes have the advantage to displace Chinese exports to the US.

It said that the specific products in which India can potentially expand exports to China immediately based on its strengths and available market access in the neighbouring country and also those in which concerted efforts need to be made to acquire market access are being shared with the line ministries.

The ongoing trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries, it said.

The Indian products which can tap the Chinese market include copper ores, rubber, paper/paperboard, equipment for transmission voice/data in a wired network, tunes and pipes.

Similarly, domestic goods which can grab exports opportunities in the US market include industrial valves, vulcanised rubber, carbon or graphite electrodes and natural honey.

Increasing exports would help India narrow the widening trade deficit with China, which stood at USD 50.12 billion during April-February 2018-19.

Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that the trade war between the US and China is benefitting India.

He has said that India's exports to the US went up by 11.2 per cent in 2018 and to China by 31.4 per cent in the same year.

Echoing the views, Ludhiana-based exporter and former FIEO president S C Ralhan said enormous opportunities are there in the engineering and machinery sector in both the countries and "we have to tap that".

The ongoing trade war between the US and China offers an opportunity to India for boosting exports of as many 350 products such as chemicals and granite to these countries, a study by the Commerce Ministry has said.

The ongoing trade war between the US and China offers an opportunity to India for boosting exports of as many 350 products such as chemicals and granite to these countries, a study by the Commerce Ministry has said. The identification of these products is part of a study carried out by the ministry which states that the ongoing tariff or customs duties war between the US and China proves a big window of opportunity for enhancing India's exports to these two nations. Both the US and China are imposing heavy import duties on each other's products, which has triggered a trade war kind of situation. According to the study, as much 151 domestic products including diesel, X-ray tubes and certain chemicals have an outright advantage to displace the US exports to China. Similarly, 203 Indian goods like rubber and graphite electrodes have the advantage to displace Chinese exports to the US. It said that the specific products in which India can potentially expand exports to China immediately based on its strengths and available market access in the neighbouring country and also those in which concerted efforts need to be made to acquire market access are being shared with the line ministries. The ongoing trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries, it said. The Indian products which can tap the Chinese market include copper ores, rubber, paper/paperboard, equipment for transmission voice/data in a wired network, tunes and pipes. Similarly, domestic goods which can grab exports opportunities in the US market include industrial valves, vulcanised rubber, carbon or graphite electrodes and natural honey. Increasing exports would help India narrow the widening trade deficit with China, which stood at USD 50.12 billion during April-February 2018-19. Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that the trade war between the US and China is benefitting India. He has said that India's exports to the US went up by 11.2 per cent in 2018 and to China by 31.4 per cent in the same year. Echoing the views, Ludhiana-based exporter and former FIEO president S C Ralhan said enormous opportunities are there in the engineering and machinery sector in both the countries and "we have to tap that".

Amid US-China trade war, India can boost exports of 300 products to both countries: Report

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

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

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

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

US Treasury Secretary Steven Mnuchin said on Sunday that President Donald Trump might ease US restrictions on Huawei if there was progress in the trade row with China - but absent a deal, Washington would maintain tariffs to cut its deficit.

"I think what the president is saying is, if we move forward on trade, that perhaps he'll be willing to do certain things on Huawei if he gets comfort from China on that and certain guarantees," Mnuchin said. "But these are national security issues."

Washington has imposed and then toughened import tariffs on Chinese goods in a bid to reduce the United States' trade deficit and combat what it calls unfair trade practices.

It has also accused the Chinese telecommunications giant of espionage and stealing intellectual property, allegations that Huawei Technologies Co Ltd, a leading provider of next-generation 5G technology, denies.

Washington has put Huawei on a blacklist that effectively bans US firms from doing business with it, and has put pressure on its allies also to shut Huawei out, arguing that Huawei could use its technology to carry out espionage for Beijing.

Mnuchin said the United States was prepared to come to a deal with China, but also to maintain tariffs if necessary.

"If China wants to move forward with the deal, we're prepared to move forward on the terms we've done. If China doesn't want to move forward, then President Trump is perfectly happy to move forward with tariffs to rebalance the relationship," Mnuchin said.

Commenting on an immigration deal between Mexico and the United States, Mnuchin said he believed that Mexico would meet its commitments, but added that Trump "reserves the right" to impose tariffs if the commitments were not met.

Trump himself tweeted on Saturday that "Mexico will try very hard, and if they do that, this will be a very successful agreement between the United States and Mexico".

US Treasury Secretary Steven Mnuchin said on Sunday that President Donald Trump might ease US restrictions on Huawei if there was progress in the trade row with China - but absent a deal, Washington would maintain tariffs to cut its deficit.

US Treasury Secretary Steven Mnuchin said on Sunday that President Donald Trump might ease US restrictions on Huawei if there was progress in the trade row with China - but absent a deal, Washington would maintain tariffs to cut its deficit. "I think what the president is saying is, if we move forward on trade, that perhaps he'll be willing to do certain things on Huawei if he gets comfort from China on that and certain guarantees," Mnuchin said. "But these are national security issues." Washington has imposed and then toughened import tariffs on Chinese goods in a bid to reduce the United States' trade deficit and combat what it calls unfair trade practices. It has also accused the Chinese telecommunications giant of espionage and stealing intellectual property, allegations that Huawei Technologies Co Ltd, a leading provider of next-generation 5G technology, denies. Washington has put Huawei on a blacklist that effectively bans US firms from doing business with it, and has put pressure on its allies also to shut Huawei out, arguing that Huawei could use its technology to carry out espionage for Beijing. Mnuchin said the United States was prepared to come to a deal with China, but also to maintain tariffs if necessary. "If China wants to move forward with the deal, we're prepared to move forward on the terms we've done. If China doesn't want to move forward, then President Trump is perfectly happy to move forward with tariffs to rebalance the relationship," Mnuchin said. Commenting on an immigration deal between Mexico and the United States, Mnuchin said he believed that Mexico would meet its commitments, but added that Trump "reserves the right" to impose tariffs if the commitments were not met. Trump himself tweeted on Saturday that "Mexico will try very hard, and if they do that, this will be a very successful agreement between the United States and Mexico".

US Treasury Secretary Mnuchin says Trump could ease up on Huawei if trade talks advance

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

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

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

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

China's central bank chief said Friday the country has <a href="https://www.wionews.com/world/explainer-us-china-trade-war-the-levers-they-can-pull-224809">plenty of policy tools left to handle the trade war</a> with the United States.

There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV.

"We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous," Yi said on Bloomberg TV.

<a href="https://www.wionews.com/world/china-warns-its-companies-on-us-travel-rebuffs-trade-criticism-224200">Ties between China and the US</a> have deteriorated sharply after trade negotiations stalled last month without a deal to lift bruising tariffs on goods worth $360 billion in two-way trade.

China said Thursday that it would soon release detailed information about a planned blacklist of "unreliable" foreign companies and individuals, that analysts expect will target firms cutting off supplies to <a href="https://www.wionews.com/world/amid-us-china-row-huawei-signs-deal-with-russian-telecom-company-mts-to-develop-5g-network-224867">Chinese tech giant Huawei</a>.

Last month the US Commerce Department placed Huawei and dozens of its affiliates on an "entity list" on grounds of national security, curbing its access to crucial US-made components and software -- through a 90-day reprieve was later issued.

Yi has participated in several rounds of the trade negotiations with Washington and is scheduled to meet with US Treasury Secretary Steven Mnuchin this weekend during the G20 gathering of financial policymakers in Japan.

He said the meeting with Mnuchin would be "productive talk, as always," but trade war discussions would be "uncertain and difficult", according to Bloomberg News.

Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions

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China's yuan, or renminbi, the currency has also rapidly depreciated against the dollar as trade tensions have ramped up in recent weeks, nearing the critical seven to the dollar exchange rate.

The central bank has long prevented the yuan from falling below seven, but Yi hinted the bank may no longer defend the currency at that level.

"I don't think along this mathematical scale any number is more important (than) the other number," he said.

"The trade war would have a temporary depreciation pressure on the renminbi, but you see, after the noise, (the) renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies," he told Bloomberg TV.

"I'm very confident (the) renminbi will continue to be stable at a more or less equilibrium level," Yi said.

China's central bank chief said Friday the country has plenty of policy tools left to handle the trade war with the United States. There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV.

China's central bank chief said Friday the country has plenty of policy tools left to handle the trade war with the United States. There is "tremendous" room to counter the deepening trade war, People's Bank of China governor Yi Gang said in an interview with Bloomberg TV. "We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous," Yi said on Bloomberg TV. Ties between China and the US have deteriorated sharply after trade negotiations stalled last month without a deal to lift bruising tariffs on goods worth $360 billion in two-way trade. China said Thursday that it would soon release detailed information about a planned blacklist of "unreliable" foreign companies and individuals, that analysts expect will target firms cutting off supplies to Chinese tech giant Huawei. Last month the US Commerce Department placed Huawei and dozens of its affiliates on an "entity list" on grounds of national security, curbing its access to crucial US-made components and software -- through a 90-day reprieve was later issued. Yi has participated in several rounds of the trade negotiations with Washington and is scheduled to meet with US Treasury Secretary Steven Mnuchin this weekend during the G20 gathering of financial policymakers in Japan. He said the meeting with Mnuchin would be "productive talk, as always," but trade war discussions would be "uncertain and difficult", according to Bloomberg News. Watch: IMF's Lagarde warns of 'growing concerns' over trade tensions × China's yuan, or renminbi, the currency has also rapidly depreciated against the dollar as trade tensions have ramped up in recent weeks, nearing the critical seven to the dollar exchange rate. The central bank has long prevented the yuan from falling below seven, but Yi hinted the bank may no longer defend the currency at that level. "I don't think along this mathematical scale any number is more important (than) the other number," he said. "The trade war would have a temporary depreciation pressure on the renminbi, but you see, after the noise, (the) renminbi will continue to be very stable and relatively strong compared to emerging market currencies, even compared to convertible currencies," he told Bloomberg TV. "I'm very confident (the) renminbi will continue to be stable at a more or less equilibrium level," Yi said.

China has tools to handle trade war with US: Central bank chief Yi Gang

World Bank Slashes Global Growth Forecast, But Retains Projections For India U.S.-China trade war, Brexit uncertainty ; World Bank lowers global growth forecast, but India's economic growth is pegged at 7.5% for 2019. Here's a summary of the World Bank's assessment on the risks in front of global economy

Gravitas: World Bank cuts global growth forecast

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the <a href="https://www.wionews.com/world/china-warns-its-companies-on-us-travel-rebuffs-trade-criticism-224200">US-China trade war may offer a window</a> of opportunity.

The souring of ties between the world's two largest economies will indicate the extent to which China can switch some of its giant reserve holdings to another hard currency and also point to the limitations the eurozone faces in providing a viable alternative.

In the post-World War Two era, no asset has ever fully matched US government bonds for size, liquidity and credit quality. It is the closest any global security has come to being perceived as a cash-like, risk-free asset with over $16 trillion worth of paper in circulation.

Yet, a year into a bitter tariff war, there are some signs of Beijing's discomfort at being both the United States' biggest trade adversary and one of its biggest creditors.

Recent data showed China sold more US Treasuries in March than it has in any month over the past 2-1/2 years. If that proves to be more than a one-month quirk, speculation will rise about where it is diverting those reserves, and the eurozone - the world's biggest trading bloc - tops the list of likely spots.

On size alone, eurozone government bonds appear to provide a credible landing pad: outstanding securities are almost two-thirds of the overall Treasury market.

There are signs already of greater Chinese interest in Europe -- bankers attribute record Asian demand for recent Spanish, French and Belgian debt sales to Beijing.

And China has stepped up buying debt from Europe's quasi-sovereign entities, bankers told Reuters, in particular, the European Stability Mechanism (ESM) a euro zone-guaranteed AAA/A1-rated bailout fund.

Asian investors snapped up 33 per cent&nbsp;of the ESM's recent 2 billion-euro 10-year bond, data from International Financing Review shows. Asian takeup for ESM's euro issues last year was 4 per cent-5 per cent.

But for Chinese reserve managers to shift hundreds of billions of dollars from Treasuries to Europe's single currency, the euro bloc needs to address key shortcomings.

"I find it hard to square the circle how such a huge Treasury holding can be diversified away, given the landscape we are in," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers.

"In the eurozone, there is not a big risk-free market...Twenty years down the line it may be different."

For Ahmed, the main issue is that credit risk in the bloc is not uniform. The 19 members each run their own fiscal policies, budget rules are too loosely policed to ensure adherence, and euro exit remains a theoretical possibility.

So wealthier members such as Germany remain net savers that run balanced budgets or even surpluses, while others, mostly in southern Europe, are dogged by high debt.

The resulting mix of credit and political risks make it harder to see the aggregate eurozone bond market as a true mirror of the US Treasury universe.

Ross Hutchison, a fund manager at Aberdeen Standard Investments, says it boils down to the fact the United States "has a federal nature that the euro area hasn't got yet".

Additionally, distortions stemming from years of bond-buying stimulus by the European Central Bank mean available euro government bonds are far fewer than may appear.

While euro government debt outstanding is around $9.5 trillion, the ECB is estimated to hold roughly a quarter.

And the kind of "safe" securities that reserve managers seek are even scarcer -- AAA-rated debt from Germany, the Netherlands and Luxembourg total around $2.5 trillion, less if ECB holdings are discounted. Debt from slightly lower-rated France, Belgium and Austria would add another $3 trillion.

Italy, on the other hand, has the bloc's biggest government bond market, worth $2.3 trillion. But its poor debt-to-GDP ratio, sluggish economy and populist policies make its bonds riskier and its credit rating is a notch or two above junk.

So in times of stress, investors clamour for German bonds, while in Italy, yields spike, threatening to undermine local banks that hold these securities.

Italian 10-year yields are at 2.5 per cent, versus Germany's minus 0.22 per cent.

Such risks have chipped away at the euro's fortunes as a reserve currency -- International Monetary Fund data shows it comprises 20 per cent of global central bank holdings, from 26&nbsp;per cent in 2009.

The decline is linked to the 2011 Greek debt crisis that then ravaged Spain, Italy, Portugal and Ireland, highlighting risks of default by a member state and redenomination of euro debt into a new currency.

Common bond?

European officials are keen to counter the dollar's hegemony, and at a conference last month they debated ways to win the euro a "stronger international role".

But they made no mention of the one measure that could resolve the issue at a stroke -- joint debt issuance via common euro zone bonds. Such securities would pool the bloc's risks, and offer safer securities than those from most individual nations.

Olli Rehn, Bank of Finland governor and an ECB governing council member, said last week a safe asset would help enhance the euro's international role, offering hope the issue will be on the agenda of the new European Commission later this year.

A common bond "would be more significant than the creation of another TLTRO in boosting demand for euros globally and reserve managers would be part of that story," said David Owen, chief European economist at Jefferies.

He was referring to the ECB's cheap multi-year loans.

"Maybe there will be more focus on pushing forward this agenda and taking advantage of the US and China having this trade spat," Owen added.

Others, however, note that wealthier states oppose any common bond programme, fearing they will end up footing the bill. Also, across Europe populist and anti-establishment movements are on the rise, with the agenda of slowing integration and returning power to national capitals.

Such groups grabbed a greater share of the vote in EU parliamentary elections last month, albeit less than expected.

"If anything, the trend is towards decentralisation of power," Ahmed said.

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the US-China trade war may offer a window of opportunity.

Should European countries want the euro to replace the dollar as the world's dominant reserve currency, the US-China trade war may offer a window of opportunity. The souring of ties between the world's two largest economies will indicate the extent to which China can switch some of its giant reserve holdings to another hard currency and also point to the limitations the eurozone faces in providing a viable alternative. In the post-World War Two era, no asset has ever fully matched US government bonds for size, liquidity and credit quality. It is the closest any global security has come to being perceived as a cash-like, risk-free asset with over $16 trillion worth of paper in circulation. Yet, a year into a bitter tariff war, there are some signs of Beijing's discomfort at being both the United States' biggest trade adversary and one of its biggest creditors. Recent data showed China sold more US Treasuries in March than it has in any month over the past 2-1/2 years. If that proves to be more than a one-month quirk, speculation will rise about where it is diverting those reserves, and the eurozone - the world's biggest trading bloc - tops the list of likely spots. On size alone, eurozone government bonds appear to provide a credible landing pad: outstanding securities are almost two-thirds of the overall Treasury market. There are signs already of greater Chinese interest in Europe -- bankers attribute record Asian demand for recent Spanish, French and Belgian debt sales to Beijing. And China has stepped up buying debt from Europe's quasi-sovereign entities, bankers told Reuters, in particular, the European Stability Mechanism (ESM) a euro zone-guaranteed AAA/A1-rated bailout fund. Asian investors snapped up 33 per cent of the ESM's recent 2 billion-euro 10-year bond, data from International Financing Review shows. Asian takeup for ESM's euro issues last year was 4 per cent-5 per cent. But for Chinese reserve managers to shift hundreds of billions of dollars from Treasuries to Europe's single currency, the euro bloc needs to address key shortcomings. "I find it hard to square the circle how such a huge Treasury holding can be diversified away, given the landscape we are in," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers. "In the eurozone, there is not a big risk-free market...Twenty years down the line it may be different." For Ahmed, the main issue is that credit risk in the bloc is not uniform. The 19 members each run their own fiscal policies, budget rules are too loosely policed to ensure adherence, and euro exit remains a theoretical possibility. So wealthier members such as Germany remain net savers that run balanced budgets or even surpluses, while others, mostly in southern Europe, are dogged by high debt. The resulting mix of credit and political risks make it harder to see the aggregate eurozone bond market as a true mirror of the US Treasury universe. Ross Hutchison, a fund manager at Aberdeen Standard Investments, says it boils down to the fact the United States "has a federal nature that the euro area hasn't got yet". Additionally, distortions stemming from years of bond-buying stimulus by the European Central Bank mean available euro government bonds are far fewer than may appear. While euro government debt outstanding is around $9.5 trillion, the ECB is estimated to hold roughly a quarter. And the kind of "safe" securities that reserve managers seek are even scarcer -- AAA-rated debt from Germany, the Netherlands and Luxembourg total around $2.5 trillion, less if ECB holdings are discounted. Debt from slightly lower-rated France, Belgium and Austria would add another $3 trillion. Italy, on the other hand, has the bloc's biggest government bond market, worth $2.3 trillion. But its poor debt-to-GDP ratio, sluggish economy and populist policies make its bonds riskier and its credit rating is a notch or two above junk. So in times of stress, investors clamour for German bonds, while in Italy, yields spike, threatening to undermine local banks that hold these securities. Italian 10-year yields are at 2.5 per cent, versus Germany's minus 0.22 per cent. Such risks have chipped away at the euro's fortunes as a reserve currency -- International Monetary Fund data shows it comprises 20 per cent of global central bank holdings, from 26 per cent in 2009. The decline is linked to the 2011 Greek debt crisis that then ravaged Spain, Italy, Portugal and Ireland, highlighting risks of default by a member state and redenomination of euro debt into a new currency. Common bond? European officials are keen to counter the dollar's hegemony, and at a conference last month they debated ways to win the euro a "stronger international role". But they made no mention of the one measure that could resolve the issue at a stroke -- joint debt issuance via common euro zone bonds. Such securities would pool the bloc's risks, and offer safer securities than those from most individual nations. Olli Rehn, Bank of Finland governor and an ECB governing council member, said last week a safe asset would help enhance the euro's international role, offering hope the issue will be on the agenda of the new European Commission later this year. A common bond "would be more significant than the creation of another TLTRO in boosting demand for euros globally and reserve managers would be part of that story," said David Owen, chief European economist at Jefferies. He was referring to the ECB's cheap multi-year loans. "Maybe there will be more focus on pushing forward this agenda and taking advantage of the US and China having this trade spat," Owen added. Others, however, note that wealthier states oppose any common bond programme, fearing they will end up footing the bill. Also, across Europe populist and anti-establishment movements are on the rise, with the agenda of slowing integration and returning power to national capitals. Such groups grabbed a greater share of the vote in EU parliamentary elections last month, albeit less than expected. "If anything, the trend is towards decentralisation of power," Ahmed said.

US-China trade war offers Europe chance to bank more Chinese reserves: Report

China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday.

"On the trade friction started by the US: if the <a href="https://www.wionews.com/world/opinion-us-china-trade-war-risks-something-worse-167430">US wants to talk</a>, we will keep the door open. If they want to fight, we are ready," General Wei Fenghe told an international security dialogue in Singapore.

Beijing and Washington have been locked in a bruising tit-for-tat trade war, exchanging tariffs on $360 billion in two-way trade so far.

Wei is the first Chinese defence minister to attend the forum known as the Shangri-La Dialogue since 2011.

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Washington and Beijing have been vying for influence in the Asia-Pacific region, which hosts potential flashpoints such as the South China Sea, the Korean Peninsula and the Taiwan Strait.

Washington has been pushing back against<a href="https://www.wionews.com/world/get-ready-for-difficult-times-chinas-xi-warns-during-trade-war-220625"> Beijing's aggressive</a> militarisation of the South China Sea, where China has staked "indisputable" ownership over almost the whole area and rejects partial claims by Taiwan, Brunei, Malaysia, the Philippines and Vietnam.

Beijing is also regularly angered by US and other warships transiting through the Taiwan Strait, which it considers part of its territorial waters.

China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday. "On the trade friction started by the US: if the US wants to talk, we will keep the door open.

China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday. "On the trade friction started by the US: if the US wants to talk, we will keep the door open. If they want to fight, we are ready," General Wei Fenghe told an international security dialogue in Singapore. Beijing and Washington have been locked in a bruising tit-for-tat trade war, exchanging tariffs on $360 billion in two-way trade so far. Wei is the first Chinese defence minister to attend the forum known as the Shangri-La Dialogue since 2011. × Washington and Beijing have been vying for influence in the Asia-Pacific region, which hosts potential flashpoints such as the South China Sea, the Korean Peninsula and the Taiwan Strait. Washington has been pushing back against Beijing's aggressive militarisation of the South China Sea, where China has staked "indisputable" ownership over almost the whole area and rejects partial claims by Taiwan, Brunei, Malaysia, the Philippines and Vietnam. Beijing is also regularly angered by US and other warships transiting through the Taiwan Strait, which it considers part of its territorial waters.

Ready to fight US on trade but door open for talks: Chinese defence minister

China on Saturday increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of "unreliable" foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei.

Beijing's move hits $60 billion worth of US goods with new punitive tariffs ranging from five to 25 per cent, and comes in retaliation for Washington raising punitive tariffs on $200 billion in Chinese goods to 25 per cent.

Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal, with American negotiators accusing Chinese negotiators of reneging on previous commitments.

The countries have exchanged tariffs on $360 billion in two-way trade so far.

The tit-for-tat tariff war has been upstaged in recent weeks by Washington's move to blacklist Chinese tech giant Huawei over national security concerns, threatening the firm's global ambitions.

The US Commerce Department placed Huawei on an "entity list" on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.

Hitting back, China's commerce ministry said Friday it would release its own list of "unreliable entities" that break their commercial contracts and stop supplying Chinese firms.

"For China's countermeasures, what we say, we do," said anchor Kang Hui on Chinese state-broadcaster CCTV's primetime news show that aired across multiple Chinese stations Friday.&nbsp;

"Talk and our door is open. Fight, and we'll fight to the end," said Kang.&nbsp;

China's commerce ministry said it would roll out the detailed measures against companies on the list shortly, noting foreign firms that break contracts, cut off supplies or take other discriminatory measures against Chinese firms would be included.

"Obviously it's mostly aimed at Huawei suppliers, Intel, Qualcomm, ARM ... if anything it's probably aimed at non-US companies, so European, South Korean and Japanese companies that may be trying to decide how strictly to apply the US ruling," said Andrew Polk, an economist at Trivium China. 
China wants to make it a much more difficult choice to cut off supplies to Huawei, he added.

"It's potentially putting companies in a situation where they are forced to choose between the US and China and that could definitely backfire on them," said Polk.

China's state-owned tabloid the Global Times said the new list would "work as deterrent forming a protective barrier around Chinese companies".

"China is ready to wage a protracted economic and trade war with the United States," the nationalist paper said in an editorial.

Former Chinese officials warned Friday that the trade war could last decades.

"It is quite clear now that this is no longer a trade dispute and will extend much more broadly to punitive economic measures that each side can inflict upon each other," said Christopher Balding, a China expert at the Fulbright University Vietnam, adding it was reasonable to expect further escalation by each side.

"It is quite possible there will be significant collateral damage here," Balding said.

Speaking at a defence and security conference in Singapore on Saturday, the acting US defence secretary said Huawei was "too close" to Beijing, creating "too much risk".

"The integration of civilian businesses with the military is too close. China has national policies and laws where data is required to be shared," Patrick Shanahan told the forum.

Tariff hike&nbsp; 
US President Donald Trump more than doubled punitive tariffs on $200 billion in Chinese goods to 25 percent last month, and launched the process to hit nearly all remaining imports from the Asian giant.

China responded by increasing tariffs five percent to 25 percent on 5,410 American products Saturday, worth&nbsp;$60 billion in trade.

The list includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric and toys.

Washington's tariffs appear to have already had an impact on Chinese manufacturing activity, which contracted more than expected last month.

While Trump insists China will pay billions in duties, experts note that US consumers and importers bear the brunt of tariffs on products coming into the United States.

"The United States remains an important export market for China, but its importance is declining," said Wang Shouwen, who was on China's negotiating team, according to official news agency Xinhua.

He emphasised the trade war's effect on China's economy would be "controllable".

"If the US wants to force the Chinese to make concessions by engaging in unilateralism and putting on extreme pressure, this is impossible," said Wang, according to Xinhua. 
&nbsp;

China on Saturday increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of "unreliable" foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei.

China on Saturday increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of "unreliable" foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei. Beijing's move hits $60 billion worth of US goods with new punitive tariffs ranging from five to 25 per cent, and comes in retaliation for Washington raising punitive tariffs on $200 billion in Chinese goods to 25 per cent. Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal, with American negotiators accusing Chinese negotiators of reneging on previous commitments. The countries have exchanged tariffs on $360 billion in two-way trade so far. The tit-for-tat tariff war has been upstaged in recent weeks by Washington's move to blacklist Chinese tech giant Huawei over national security concerns, threatening the firm's global ambitions. The US Commerce Department placed Huawei on an "entity list" on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued. Hitting back, China's commerce ministry said Friday it would release its own list of "unreliable entities" that break their commercial contracts and stop supplying Chinese firms. "For China's countermeasures, what we say, we do," said anchor Kang Hui on Chinese state-broadcaster CCTV's primetime news show that aired across multiple Chinese stations Friday. "Talk and our door is open. Fight, and we'll fight to the end," said Kang. China's commerce ministry said it would roll out the detailed measures against companies on the list shortly, noting foreign firms that break contracts, cut off supplies or take other discriminatory measures against Chinese firms would be included. "Obviously it's mostly aimed at Huawei suppliers, Intel, Qualcomm, ARM ... if anything it's probably aimed at non-US companies, so European, South Korean and Japanese companies that may be trying to decide how strictly to apply the US ruling," said Andrew Polk, an economist at Trivium China. China wants to make it a much more difficult choice to cut off supplies to Huawei, he added. "It's potentially putting companies in a situation where they are forced to choose between the US and China and that could definitely backfire on them," said Polk. China's state-owned tabloid the Global Times said the new list would "work as deterrent forming a protective barrier around Chinese companies". "China is ready to wage a protracted economic and trade war with the United States," the nationalist paper said in an editorial. Former Chinese officials warned Friday that the trade war could last decades. "It is quite clear now that this is no longer a trade dispute and will extend much more broadly to punitive economic measures that each side can inflict upon each other," said Christopher Balding, a China expert at the Fulbright University Vietnam, adding it was reasonable to expect further escalation by each side. "It is quite possible there will be significant collateral damage here," Balding said. Speaking at a defence and security conference in Singapore on Saturday, the acting US defence secretary said Huawei was "too close" to Beijing, creating "too much risk". "The integration of civilian businesses with the military is too close. China has national policies and laws where data is required to be shared," Patrick Shanahan told the forum. Tariff hike US President Donald Trump more than doubled punitive tariffs on $200 billion in Chinese goods to 25 percent last month, and launched the process to hit nearly all remaining imports from the Asian giant. China responded by increasing tariffs five percent to 25 percent on 5,410 American products Saturday, worth $60 billion in trade. The list includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric and toys. Washington's tariffs appear to have already had an impact on Chinese manufacturing activity, which contracted more than expected last month. While Trump insists China will pay billions in duties, experts note that US consumers and importers bear the brunt of tariffs on products coming into the United States. "The United States remains an important export market for China, but its importance is declining," said Wang Shouwen, who was on China's negotiating team, according to official news agency Xinhua. He emphasised the trade war's effect on China's economy would be "controllable". "If the US wants to force the Chinese to make concessions by engaging in unilateralism and putting on extreme pressure, this is impossible," said Wang, according to Xinhua.

China raises tariffs on US goods amid esclating tensions

US Vice President Mike Pence and Canadian Prime Minister Justin Trudeau will discuss their countries' joint dispute with China over Huawei during a meeting in Ottawa on Thursday, a senior US administration official said.

Pence, known for taking a hard line against China, will travel to the Canadian capital to discuss trade issues, including Huawei Technologies Co Ltd, the world's largest telecoms network gear maker, which Washington has moved to isolate.

"Canada has been a close ally in the way that they've approached their relationship with China - and there could be some conversation about Huawei," the official told reporters, speaking on condition of anonymity.

Washington has accused Huawei of being tied to China's government and has effectively banned US firms from doing business with the company for national security reasons.

The dispute spilt into Canada last year, and Ottawa has expressed frustration at what it sees as a lacklustre US response to harsh Chinese measures.

In December, Canada arrested Huawei's Chief Financial Officer Meng Wangzhou on a US warrant. She faces extradition to the United States on charges she conspired to defraud global banks about Huawei's relationship with a company operating in Iran. She and the company have denied the charges.

Shortly after her arrest, Canadian businessman Michael Spavor and former diplomat Michael Kovrig were detained in China and were formally arrested for espionage earlier this month. Canada has called the Canadians' detentions arbitrary.

China has also cut off imports of key Canadian commodities, hurting farmers.

"Expect some very tangible outcomes from their discussion with regard to China that we'll share with you tomorrow," a second U.S. official told reporters. The officials declined to say whether Pence would offer Canada assistance on the detentions and the trade stoppages.

Pence also plans to make a separate address in the coming days about the "current state of affairs" in China, the officials said.

The speech is seen as a sequel to one Pence gave in October, when he accused China of reckless military actions, cyber attacks and human rights abuses, as well as "malign" efforts to undermine Trump's reelection campaign in 2020.

The Huawei issue is the latest trade-related snafu to rock the relationship between the United States and Canada - normally two of the world's closest allies - since President Donald Trump took office.

One of Trump's first actions was to overhaul the 25-year-old North American Free Trade Agreement with Canada and Mexico, which he commonly refers to as one of the worst trade deals ever made.

But now that the three countries have agreed to a replacement, Pence has been travelling around trade-dependent US states to urge its passage through the Congress. He will put the new deal - the United States-Mexico-Canada Agreement or USMCA - front and centre during his first trip to Canada as vice president.

The two leaders are also expected to discuss the political crisis in Venezuela. Pence has played a major role in the Trump administration's diplomatic and economic efforts to force out President Nicolas Maduro.

Both Washington and Ottawa have backed opposition leader Juan Guaido, who invoked Venezuela's constitution in January to declare himself interim president, arguing that Maduro's 2018 re-election was illegitimate.

The Trump administration has threatened a harder line against Cuba for its support of Maduro, but Trudeau has reached out to Havana to seek its help in settling the political conflict in Venezuela.

US Vice President Mike Pence and Canadian Prime Minister Justin Trudeau will discuss their countries' joint dispute with China over Huawei during a meeting in Ottawa on Thursday, a senior US administration official said.

US Vice President Mike Pence and Canadian Prime Minister Justin Trudeau will discuss their countries' joint dispute with China over Huawei during a meeting in Ottawa on Thursday, a senior US administration official said. Pence, known for taking a hard line against China, will travel to the Canadian capital to discuss trade issues, including Huawei Technologies Co Ltd, the world's largest telecoms network gear maker, which Washington has moved to isolate. "Canada has been a close ally in the way that they've approached their relationship with China - and there could be some conversation about Huawei," the official told reporters, speaking on condition of anonymity. Washington has accused Huawei of being tied to China's government and has effectively banned US firms from doing business with the company for national security reasons. The dispute spilt into Canada last year, and Ottawa has expressed frustration at what it sees as a lacklustre US response to harsh Chinese measures. In December, Canada arrested Huawei's Chief Financial Officer Meng Wangzhou on a US warrant. She faces extradition to the United States on charges she conspired to defraud global banks about Huawei's relationship with a company operating in Iran. She and the company have denied the charges. Shortly after her arrest, Canadian businessman Michael Spavor and former diplomat Michael Kovrig were detained in China and were formally arrested for espionage earlier this month. Canada has called the Canadians' detentions arbitrary. China has also cut off imports of key Canadian commodities, hurting farmers. "Expect some very tangible outcomes from their discussion with regard to China that we'll share with you tomorrow," a second U.S. official told reporters. The officials declined to say whether Pence would offer Canada assistance on the detentions and the trade stoppages. Pence also plans to make a separate address in the coming days about the "current state of affairs" in China, the officials said. The speech is seen as a sequel to one Pence gave in October, when he accused China of reckless military actions, cyber attacks and human rights abuses, as well as "malign" efforts to undermine Trump's reelection campaign in 2020. The Huawei issue is the latest trade-related snafu to rock the relationship between the United States and Canada - normally two of the world's closest allies - since President Donald Trump took office. One of Trump's first actions was to overhaul the 25-year-old North American Free Trade Agreement with Canada and Mexico, which he commonly refers to as one of the worst trade deals ever made. But now that the three countries have agreed to a replacement, Pence has been travelling around trade-dependent US states to urge its passage through the Congress. He will put the new deal - the United States-Mexico-Canada Agreement or USMCA - front and centre during his first trip to Canada as vice president. The two leaders are also expected to discuss the political crisis in Venezuela. Pence has played a major role in the Trump administration's diplomatic and economic efforts to force out President Nicolas Maduro. Both Washington and Ottawa have backed opposition leader Juan Guaido, who invoked Venezuela's constitution in January to declare himself interim president, arguing that Maduro's 2018 re-election was illegitimate. The Trump administration has threatened a harder line against Cuba for its support of Maduro, but Trudeau has reached out to Havana to seek its help in settling the political conflict in Venezuela.

Pence, Trudeau to discuss Huawei and China trade issues in Ottawa: Official

They are used in everything from lightbulbs to guided missiles, but with China controlling 95 per cent of the world's supply of rare earth metals, they are also a potentially powerful weapon in Beijing's trade war with Washington.

Here are some key questions and answers on the prized elements.

What are rare earths?

The bedrock of electrical manufacturing, rare earths are 17 elements that serve as key components in devices ranging from hi-tech smartphones and cameras to flat-screen televisions and computers.

China dominates the global supply chain -- and Washington relies heavily on the Asian superpower to access the metals. So much so that the commodities have not been subject to the tariff increases imposed by Donald Trump's administration on Chinese goods.

But Chinese state media is now suggesting that rare earth exports to the US could be cut in retaliation for American measures, sparking fear among manufacturers.

Why is China threatening to restrict exports?

Simply put, rare earths give Beijing tremendous political and economic leverage in its spat with the United States.

The US this month threatened to cut supplies of US technology to Chinese telecom giant Huawei, citing security concerns and intensifying a trade spat that has seen both countries slap tit-for-tat tariffs on each other.

While Beijing has so far only issued cryptic warnings to suggest that rare earths could be its next weapon, "as a retaliatory trade measure, it's a no-brainer on the surface", according to OANDA senior market analyst Jeffrey Halley.

If Beijing chooses to make good on these threats, the impact on US manufacturers could be disastrous.

"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 last week in National Defense, a US industry publication.

Have we been here before?

China has been accused of using its rare earth leverage for political and economic reasons in the past.

In 2014, the World Trade Organization ruled the country had violated global trade rules by restricting exports of the metals, claiming environmental damage from mining and the need to conserve supplies.

The US, European Union and Japan had appealed to the WTO, accusing Beijing of curbing exports to give domestic tech firms an edge over foreign rivals.&nbsp;

The WTO panel ruled that the quotas were "designed to achieve industrial policy goals rather than conservation".

Four years earlier, Japanese industry sources said China temporarily cut off exports to Japan in 2010 when a territorial row flared between the Asian rivals, charges that Beijing denied.

How likely is it to make good on its threat this time?

Analysts say Beijing may not pull the trigger just yet, possibly because any restriction could spark a chase for alternative sources of rare earths.

Despite its dominance oversupply, China is not the only country with sizeable reserves of the metals.

The United States Geological Survey estimated last year there were 120 million tonnes of deposits worldwide including 44 million in China and 22 million in both Brazil and Vietnam.

If rare earths aren't all that rare, why is no one else producing them?

For much of the last century, the US-dominated rare earths production.&nbsp;

But mining the metals creates huge amounts of toxic waste and in 2003 California's Mountain Pass mine -- then the sole US miner of rare earths -- ceased production, following an environmental disaster a few years earlier.

China filled the void -- helped in no small part by lax regulations and lower costs -- and grew quickly to become the leading producer of the metals.

Rare earths "are abundant across the globe", said OANDA's Halley, but added that many countries are turned off by the heavy costs -- financial and environmental -- incurred in the production process.

"Much like everyone would like a new airport nearby, just not next door to them... the world has reaped what it has sown by handing the keys to China in this respect", he said.

They are used in everything from lightbulbs to guided missiles, but with China controlling 95 per cent of the world's supply of rare earth metals, they are also a potentially powerful weapon in Beijing's trade war with Washington.

They are used in everything from lightbulbs to guided missiles, but with China controlling 95 per cent of the world's supply of rare earth metals, they are also a potentially powerful weapon in Beijing's trade war with Washington. Here are some key questions and answers on the prized elements. What are rare earths? The bedrock of electrical manufacturing, rare earths are 17 elements that serve as key components in devices ranging from hi-tech smartphones and cameras to flat-screen televisions and computers. China dominates the global supply chain -- and Washington relies heavily on the Asian superpower to access the metals. So much so that the commodities have not been subject to the tariff increases imposed by Donald Trump's administration on Chinese goods. But Chinese state media is now suggesting that rare earth exports to the US could be cut in retaliation for American measures, sparking fear among manufacturers. Why is China threatening to restrict exports? Simply put, rare earths give Beijing tremendous political and economic leverage in its spat with the United States. The US this month threatened to cut supplies of US technology to Chinese telecom giant Huawei, citing security concerns and intensifying a trade spat that has seen both countries slap tit-for-tat tariffs on each other. While Beijing has so far only issued cryptic warnings to suggest that rare earths could be its next weapon, "as a retaliatory trade measure, it's a no-brainer on the surface", according to OANDA senior market analyst Jeffrey Halley. If Beijing chooses to make good on these threats, the impact on US manufacturers could be disastrous. "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 last week in National Defense, a US industry publication. Have we been here before? China has been accused of using its rare earth leverage for political and economic reasons in the past. In 2014, the World Trade Organization ruled the country had violated global trade rules by restricting exports of the metals, claiming environmental damage from mining and the need to conserve supplies. The US, European Union and Japan had appealed to the WTO, accusing Beijing of curbing exports to give domestic tech firms an edge over foreign rivals. The WTO panel ruled that the quotas were "designed to achieve industrial policy goals rather than conservation". Four years earlier, Japanese industry sources said China temporarily cut off exports to Japan in 2010 when a territorial row flared between the Asian rivals, charges that Beijing denied. How likely is it to make good on its threat this time? Analysts say Beijing may not pull the trigger just yet, possibly because any restriction could spark a chase for alternative sources of rare earths. Despite its dominance oversupply, China is not the only country with sizeable reserves of the metals. The United States Geological Survey estimated last year there were 120 million tonnes of deposits worldwide including 44 million in China and 22 million in both Brazil and Vietnam. If rare earths aren't all that rare, why is no one else producing them? For much of the last century, the US-dominated rare earths production. But mining the metals creates huge amounts of toxic waste and in 2003 California's Mountain Pass mine -- then the sole US miner of rare earths -- ceased production, following an environmental disaster a few years earlier. China filled the void -- helped in no small part by lax regulations and lower costs -- and grew quickly to become the leading producer of the metals. Rare earths "are abundant across the globe", said OANDA's Halley, but added that many countries are turned off by the heavy costs -- financial and environmental -- incurred in the production process. "Much like everyone would like a new airport nearby, just not next door to them... the world has reaped what it has sown by handing the keys to China in this respect", he said.

Rare earths: The latest weapon in the US-China trade war

The<a href="https://www.wionews.com/world/imf-warns-us-china-trade-war-will-jeopardize-2019-global-growth-221117"> trade war between Beijing and Washington </a>has stoked concern in financial markets that China might opt to weaponise its holdings of more than $1.1 trillion worth of US&nbsp;Treasuries in retaliation for the tariffs the Trump administration has imposed on Chinese imports.

Often referred to as the "nuclear option," choosing to dump so large a pool of assets would likely destabilise world financial markets, drive interest rates higher and push tensions between the world's two largest economies into uncharted territory.

China has been slimming its Treasury securities portfolio for some time, but most analysts see an aggressive reduction of its holdings as a remote possibility at most. There is no evidence Beijing is seriously looking to flood markets with its US&nbsp;bonds.

Here are some key points about China's Treasuries portfolio:

How much US debt does Chins own?

About a decade ago, China overtook Japan as the largest foreign holder of US&nbsp;government debt.

Its holdings stood at more than $1.12 trillion at the end of March, according to US&nbsp;Treasury Department data. Japan is a close second with nearly $1.08 trillion.

China's holdings peaked in late 2013 at nearly $1.32 trillion and have come down by about 15% since then. In March they were the lowest in about two years.

Its share of the Treasury market has fallen even faster, due to the steady issuance of US&nbsp;debt required to finance the growing federal budget deficit.

The world's second-biggest economy owns about 7% of the $16.18 trillion of US&nbsp;public debt outstanding, its lowest share in 14 years, and down from a peak of 14% in 2011. Still, its slice of the pie is exceeded only by the US&nbsp;Federal Reserve, which owns $2.15 trillion of Treasuries, or 13.5% of the market.

Treasury issuance is expected to keep accelerating following a massive tax cut enacted in December 2017, so China's share of the market will likely drop even further.

Why does China own so much US debt?

As a net exporter to the United States and the rest of the world, China has the world's largest stash of foreign-exchange reserves at more than $3 trillion. Much of that is denominated in US dollars accumulated through its persistent trade surplus with the United States since the early 1990s.

A natural place for China to park a lot of those greenbacks is the US&nbsp;Treasury market, which is by far the largest and most liquid pool of safe assets in the world.

Also, since the financial crisis of 2007-2009, US&nbsp;Treasuries have consistently yielded more than bonds issued by other large developed economies such as Japan and Germany, which has been another lure.

What is the risk to the United States if China sells?

Most analysts agree that large-scale selling by Beijing would disrupt the Treasury market and other markets.

An abrupt shift in the balance of supply and demand could drive down Treasury prices, and drive up their yields, which move in the opposite direction to prices. That would cause a spike in borrowing costs for the US government.

Also, because Treasury yields are a benchmark for US&nbsp;consumer and business credit, interest rates on everything from corporate bonds to homeowners' mortgages would rise, likely slowing the economy.

Such a jarring move would also erode global investors' confidence in the US&nbsp;dollar as the world's top reserve currency.

What is the risk to China if IT dumbs treasures?

Most analysts argue China has not opted to sell Uncle Sam's IOUs because a nosedive in US&nbsp;bond prices also would bring down the value of China's remaining Treasury holdings.

Also, China's currency, the yuan, is not fully free floating. Beijing uses its Treasury holdings as a key tool to stabilise the yuan within a targeted range, against the dollar in particular.

Some critics have alleged China uses Treasuries and its other currency reserves to hold down the yuan, making its exports more attractive. At the same time, allowing the currency to cheapen too many risks other problems, such as foreign capital flight.

Any sharp depreciation in the greenback might force Beijing to defend the yuan, which may mean shedding more of its Treasuries stake. Back in 2016, China's Treasuries holdings fell sharply by some $200 billion from May to November of that year as the yuan depreciated on worries about the Chinese economy.

Lastly, any knock-on effect in the US&nbsp;economy would also be felt in China because the United States is the destination for nearly a fifth of Chinese exports.

The trade war between Beijing and Washington has stoked concern in financial markets that China might opt to weaponise its holdings of more than $1.1 trillion worth of US Treasuries in retaliation for the tariffs the Trump administration has imposed on Chinese imports.

The trade war between Beijing and Washington has stoked concern in financial markets that China might opt to weaponise its holdings of more than $1.1 trillion worth of US Treasuries in retaliation for the tariffs the Trump administration has imposed on Chinese imports. Often referred to as the "nuclear option," choosing to dump so large a pool of assets would likely destabilise world financial markets, drive interest rates higher and push tensions between the world's two largest economies into uncharted territory. China has been slimming its Treasury securities portfolio for some time, but most analysts see an aggressive reduction of its holdings as a remote possibility at most. There is no evidence Beijing is seriously looking to flood markets with its US bonds. Here are some key points about China's Treasuries portfolio: How much US debt does Chins own? About a decade ago, China overtook Japan as the largest foreign holder of US government debt. Its holdings stood at more than $1.12 trillion at the end of March, according to US Treasury Department data. Japan is a close second with nearly $1.08 trillion. China's holdings peaked in late 2013 at nearly $1.32 trillion and have come down by about 15% since then. In March they were the lowest in about two years. Its share of the Treasury market has fallen even faster, due to the steady issuance of US debt required to finance the growing federal budget deficit. The world's second-biggest economy owns about 7% of the $16.18 trillion of US public debt outstanding, its lowest share in 14 years, and down from a peak of 14% in 2011. Still, its slice of the pie is exceeded only by the US Federal Reserve, which owns $2.15 trillion of Treasuries, or 13.5% of the market. Treasury issuance is expected to keep accelerating following a massive tax cut enacted in December 2017, so China's share of the market will likely drop even further. Why does China own so much US debt? As a net exporter to the United States and the rest of the world, China has the world's largest stash of foreign-exchange reserves at more than $3 trillion. Much of that is denominated in US dollars accumulated through its persistent trade surplus with the United States since the early 1990s. A natural place for China to park a lot of those greenbacks is the US Treasury market, which is by far the largest and most liquid pool of safe assets in the world. Also, since the financial crisis of 2007-2009, US Treasuries have consistently yielded more than bonds issued by other large developed economies such as Japan and Germany, which has been another lure. What is the risk to the United States if China sells? Most analysts agree that large-scale selling by Beijing would disrupt the Treasury market and other markets. An abrupt shift in the balance of supply and demand could drive down Treasury prices, and drive up their yields, which move in the opposite direction to prices. That would cause a spike in borrowing costs for the US government. Also, because Treasury yields are a benchmark for US consumer and business credit, interest rates on everything from corporate bonds to homeowners' mortgages would rise, likely slowing the economy. Such a jarring move would also erode global investors' confidence in the US dollar as the world's top reserve currency. What is the risk to China if IT dumbs treasures? Most analysts argue China has not opted to sell Uncle Sam's IOUs because a nosedive in US bond prices also would bring down the value of China's remaining Treasury holdings. Also, China's currency, the yuan, is not fully free floating. Beijing uses its Treasury holdings as a key tool to stabilise the yuan within a targeted range, against the dollar in particular. Some critics have alleged China uses Treasuries and its other currency reserves to hold down the yuan, making its exports more attractive. At the same time, allowing the currency to cheapen too many risks other problems, such as foreign capital flight. Any sharp depreciation in the greenback might force Beijing to defend the yuan, which may mean shedding more of its Treasuries stake. Back in 2016, China's Treasuries holdings fell sharply by some $200 billion from May to November of that year as the yuan depreciated on worries about the Chinese economy. Lastly, any knock-on effect in the US economy would also be felt in China because the United States is the destination for nearly a fifth of Chinese exports.

Will China dump US bonds as a trade weapon? Not so fast

China is digging in for a tough period of deteriorating ties with the United States, fanning the flames of patriotism with Korean War films, a viral song on the trade war, and editorials lambasting Washington.

The trade spat has turned into a war of words since President Donald Trump blacklisted Huawei last week over concerns the telecom giant's equipment could be used by Beijing for espionage.

The move, which bans US companies from providing technology Huawei needs, came as the two sides have yet to resume trade negotiations after they exchanged steep increases in tariffs.

A commentary on state-run Xinhua news agency Friday said China now had a "deeper understanding" of US "capriciousness" and was ready to fight with its "Long March" spirit.

It echoes President Xi Jinping's tough stance when he called on cadres earlier this week to brace themselves for a "new Long March" -- recalling the legendary strategic retreat by Communist revolutionaries in the 1930s who regrouped and went on to triumph in 1949.

Xi warned local officials of "complicated and long-term effects" of external influences.

The world's top two economies will "go through a long period of irrational conflict," said Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, at a government organised briefing Wednesday.

"And then during this process, step by step... come to understand each other, resist each other, and (finally) cooperate with each other."

'Selfish and arrogant'

Trump has left the door open for reconciliation with plans to meet President Xi on the sidelines of the G20 summit in Japan next month.

But Chinese state media have ramped up the rhetoric.

A Xinhua commentary Thursday called the US government "selfish and arrogant".

"The US is defying international rules, abandoning cooperation agreements and harping on America first, American privilege and American exceptionalism," it said.

Since Trump raised tariffs on $200 billion in Chinese goods in mid-May, the Communist Party mouthpiece People's Daily has been running a daily column tag-lined "an alarm bell", rejecting Trump's arguments that China's rise was leading to American losses.

Korean War films stoking anti-US sentiments from the 1950s were broadcast for six consecutive days on state television from May 16, reminding audiences of a time when the Cold War came to China's doorstep as it fought on North's side against US-led UN forces defending the South.

Meanwhile, a song penned by a former Chinese government official vowing to beat the US "out of its wits" on the trade war went viral this week, before it was pulled down from popular social media platforms WeChat and Weibo for violating their content rules.

The song is set to the tune of a well-known wartime anti-Japanese propaganda film, "Tunnel War".&nbsp;

"The Chinese nation is facing a dangerous threat now, similar to the difficult times addressed in the film," lyricist Zhao Liangtian told AFP.

"I want to use this song to awaken the masses. We need to unite as one to develop and to fight."

'Fake' patriotism

Chinese netizens have rallied around Huawei after Trump's threat to kneecap the company, which is widely seen as a move to thwart Beijing's hi-tech ambitions.

An interview last week with the telecom giant's founder, Ren Zhengfei, was one of the top trending topics on China's Twitter-like microblogging platform Weibo.

Hundreds of commentators said they wouldn't abandon the company, while a few called for boycotting iPhones.

But several others said the idea of smashing iPhones was "mere fake patriotism," after Ren himself said his family uses Apple products.

"US attempts to damage Huawei is only a delay tactic, it won't lead to a deadlock," said Shi Yinhong, director of the American studies centre at Renmin University.

But China's tech sector would have to brace itself for a long, painful period as it had relied heavily on American technologies, he said.

"The American door is closing," he said, "but China still doesn't have a plan B."&nbsp;

China is digging in for a tough period of deteriorating ties with the United States, fanning the flames of patriotism with Korean War films, a viral song on the trade war, and editorials lambasting Washington.

China is digging in for a tough period of deteriorating ties with the United States, fanning the flames of patriotism with Korean War films, a viral song on the trade war, and editorials lambasting Washington. The trade spat has turned into a war of words since President Donald Trump blacklisted Huawei last week over concerns the telecom giant's equipment could be used by Beijing for espionage. The move, which bans US companies from providing technology Huawei needs, came as the two sides have yet to resume trade negotiations after they exchanged steep increases in tariffs. A commentary on state-run Xinhua news agency Friday said China now had a "deeper understanding" of US "capriciousness" and was ready to fight with its "Long March" spirit. It echoes President Xi Jinping's tough stance when he called on cadres earlier this week to brace themselves for a "new Long March" -- recalling the legendary strategic retreat by Communist revolutionaries in the 1930s who regrouped and went on to triumph in 1949. Xi warned local officials of "complicated and long-term effects" of external influences. The world's top two economies will "go through a long period of irrational conflict," said Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, at a government organised briefing Wednesday. "And then during this process, step by step... come to understand each other, resist each other, and (finally) cooperate with each other." 'Selfish and arrogant' Trump has left the door open for reconciliation with plans to meet President Xi on the sidelines of the G20 summit in Japan next month. But Chinese state media have ramped up the rhetoric. A Xinhua commentary Thursday called the US government "selfish and arrogant". "The US is defying international rules, abandoning cooperation agreements and harping on America first, American privilege and American exceptionalism," it said. Since Trump raised tariffs on $200 billion in Chinese goods in mid-May, the Communist Party mouthpiece People's Daily has been running a daily column tag-lined "an alarm bell", rejecting Trump's arguments that China's rise was leading to American losses. Korean War films stoking anti-US sentiments from the 1950s were broadcast for six consecutive days on state television from May 16, reminding audiences of a time when the Cold War came to China's doorstep as it fought on North's side against US-led UN forces defending the South. Meanwhile, a song penned by a former Chinese government official vowing to beat the US "out of its wits" on the trade war went viral this week, before it was pulled down from popular social media platforms WeChat and Weibo for violating their content rules. The song is set to the tune of a well-known wartime anti-Japanese propaganda film, "Tunnel War". "The Chinese nation is facing a dangerous threat now, similar to the difficult times addressed in the film," lyricist Zhao Liangtian told AFP. "I want to use this song to awaken the masses. We need to unite as one to develop and to fight." 'Fake' patriotism Chinese netizens have rallied around Huawei after Trump's threat to kneecap the company, which is widely seen as a move to thwart Beijing's hi-tech ambitions. An interview last week with the telecom giant's founder, Ren Zhengfei, was one of the top trending topics on China's Twitter-like microblogging platform Weibo. Hundreds of commentators said they wouldn't abandon the company, while a few called for boycotting iPhones. But several others said the idea of smashing iPhones was "mere fake patriotism," after Ren himself said his family uses Apple products. "US attempts to damage Huawei is only a delay tactic, it won't lead to a deadlock," said Shi Yinhong, director of the American studies centre at Renmin University. But China's tech sector would have to brace itself for a long, painful period as it had relied heavily on American technologies, he said. "The American door is closing," he said, "but China still doesn't have a plan B."

China digs in for protracted trade fight with US

US president Donald Trump embarked on a four-day visit to Japan amid trade war with China. Watch full video to know more.

US President Trump reaches Japan on four-day visit

Acting US Defence Secretary Patrick Shanahan will meet China's defence minister at an Asia defence forum in Singapore, a senior US defence official said on Friday, at a time of strained relations between Beijing and Washington over trade and security.

Tensions between China and the United States have intensified in the past year, over an ongoing trade war and over the disputed South China Sea and US support for self-ruled Taiwan, which China claims as its own.

"We're doing a pull aside (meeting) with the Chinese counterpart at Shangri-La," said the official, speaking on the condition of anonymity.

Chinese Defense Minister Wei Fenghe will deliver a speech on June 2 at the Shangri-La Dialogue, the first time since 2011 that a Chinese defence minister will be at the forum, having in recent years sent lower-level officials.

"We've got a relationship with China that contains elements of both competition and cooperation," the senior US&nbsp;defence official said.

Shanahan's predecessor Jim Mattis met Wei in Singapore last year.

Separately on Friday, the Pentagon said US and Chinese officials met in Washington earlier this week.

"The dialogue emphasized a constructive, results-oriented military relationship with a focus on maintaining open and clear communication, especially in times of crisis," a Pentagon statement said. The two sides discussed topics that included the South China Sea and North Korea.

Acting US Defence Secretary Patrick Shanahan will meet China's defence minister at an Asia defence forum in Singapore, a senior US defence official said on Friday, at a time of strained relations between Beijing and Washington over trade and security.

Acting US Defence Secretary Patrick Shanahan will meet China's defence minister at an Asia defence forum in Singapore, a senior US defence official said on Friday, at a time of strained relations between Beijing and Washington over trade and security. Tensions between China and the United States have intensified in the past year, over an ongoing trade war and over the disputed South China Sea and US support for self-ruled Taiwan, which China claims as its own. "We're doing a pull aside (meeting) with the Chinese counterpart at Shangri-La," said the official, speaking on the condition of anonymity. Chinese Defense Minister Wei Fenghe will deliver a speech on June 2 at the Shangri-La Dialogue, the first time since 2011 that a Chinese defence minister will be at the forum, having in recent years sent lower-level officials. "We've got a relationship with China that contains elements of both competition and cooperation," the senior US defence official said. Shanahan's predecessor Jim Mattis met Wei in Singapore last year. Separately on Friday, the Pentagon said US and Chinese officials met in Washington earlier this week. "The dialogue emphasized a constructive, results-oriented military relationship with a focus on maintaining open and clear communication, especially in times of crisis," a Pentagon statement said. The two sides discussed topics that included the South China Sea and North Korea.

Shanahan to meet Chinese counterpart in Singapore: US official

Oil&nbsp;prices dropped on Thursday, extending falls from the previous session amid surging US&nbsp;crude inventories and weak demand from refineries.

Brent crude futures, the international benchmark for&nbsp;oil&nbsp;prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel.

Crude futures already fell by around 2 per cent the previous day.

"Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on&nbsp;prices)," said Edward Moya, senior analyst at futures brokerage OANDA.

The<a href="https://www.wionews.com/world/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-220779"> US&nbsp;crude&nbsp;oil&nbsp;</a>inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday.

Commercial US&nbsp;crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed.

Beyond weak refinery demand for feedstock crude&nbsp;oil, the increase in commercial inventories also came on the back of planned sales of US&nbsp;strategic petroleum reserves (SPR) into the commercial market.

The US&nbsp;crude&nbsp;oil&nbsp;production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month.

Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China&nbsp;trade war" were also weighing on&nbsp;oil&nbsp;prices.

Countering these bearish&nbsp;price&nbsp;factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market.

"Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on&nbsp;oil&nbsp;markets published this week.

"Macroeconomic data has rapidly deteriorated, and this is reflected in weaker&nbsp;oil&nbsp;demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said.

"On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019.

French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel. Crude futures already fell by around 2 per cent the previous day. "Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on prices)," said Edward Moya, senior analyst at futures brokerage OANDA. The US crude oil inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday. Commercial US crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed. Beyond weak refinery demand for feedstock crude oil, the increase in commercial inventories also came on the back of planned sales of US strategic petroleum reserves (SPR) into the commercial market. The US crude oil production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month. Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China trade war" were also weighing on oil prices. Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market. "Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on oil markets published this week. "Macroeconomic data has rapidly deteriorated, and this is reflected in weaker oil demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said. "On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019. French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

Oil prices fall on surging US crude stockpiles, economic concerns

Asian stock&nbsp;markets&nbsp;were mixed on Friday, with sentiment torn between investors worried that the <a href="https://www.wionews.com/world/china-says-us-must-show-sincerity-for-trade-talks-to-continue-221010">US-China trade war</a> was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

European stock&nbsp;markets&nbsp;looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week.

Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%.

Japan's Nikkei average was lower by 0.3%.

On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&amp;P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie&nbsp;global&nbsp;economic growth.

US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous."

Jasper Lawler, head of research at London Capital Group, said,&nbsp;&nbsp;"the fact that Trump is still talking about a trade agreement is offering some optimism to the&nbsp;markets."

"Traders have been focused on the damage to the&nbsp;global&nbsp;economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open.

Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns.

The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products.

China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions."

Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the&nbsp;global&nbsp;investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak."

As flight-to-safety plays dominated&nbsp;global&nbsp;markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%.

Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks.

"In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)."

"Since the&nbsp;global&nbsp;financial crisis, US&nbsp;output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit.&nbsp;Markets&nbsp;could start to fret over a&nbsp;global&nbsp;slowdown as they have done late last year."

The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US&nbsp;time. It was last quoted at 97.847, little changed on the day.

The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181.

Sterling weakened again on Thursday as pressure mounted on<a href="https://www.wionews.com/world/british-pm-theresa-may-expected-to-announce-her-departure-on-friday-report-220845"> British Prime Minister Theresa May</a> to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union.

The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro.

Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day.

In commodity&nbsp;markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months.

Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East.

US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon.

Asian stock markets were mixed on Friday, with sentiment torn between investors worried that the US-China trade war was becoming more protracted, and others hope that the world's two largest economies would reach a settlement soon. European stock markets looked slightly more optimistic. In early trade, futures for the pan-region Euro Stoxx 50 index and German DAX futures gained 0.4%, and London's FTSE futures were up 0.3%. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan bounced back to trade flat after hitting a four-month low earlier. The index is still on track for a third straight weekly loss, down 0.8% so far on the week. Chinese equities firmed as some investors took advantage of cheap share prices. The Shanghai Composite gained 0.1% and the blue-chip CSI 300 rose 0.4% in afternoon trade. Hong Kong's Hang Seng added 0.3%. Japan's Nikkei average was lower by 0.3%. On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating US-China trade war would stymie global economic growth. US President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies might be resolved within the framework of a US-China trade deal while calling the Chinese telecom giant "very dangerous." Jasper Lawler, head of research at London Capital Group, said, "the fact that Trump is still talking about a trade agreement is offering some optimism to the markets." "Traders have been focused on the damage to the global economy that a prolonged trade war could cause, so a break from the bad news is cautiously lifting sentiment," he wrote in a note on Friday, commenting on the expected higher European open. Washington last week effectively banned US firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns. The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalise Chinese products. China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions." Masanari Takada, the cross-assets strategist at Nomura Securities in Tokyo, said the US-China trade conflict "has not yet fully dented the global investor sentiment, so there is no panic-selling. But at the same time, the sentiment will likely remain weak." As flight-to-safety plays dominated global markets, the benchmark 10-year US Treasury note yield hit 2.292%, the lowest level since mid-October 2017, with the key parts of the yield curve inverted. The yield last stood at 2.3237%. Chotaro Morita, the chief fixed-income strategist at SMBC Nikko Securities, said big falls shown in a fresh US manufacturing survey appear to reflect expectations of a breakdown in the US-China trade talks. "In the last couple of years, the PMI has had a very small gap with hard data, such as industrial output. So if that holds true this time, we could see factory production plunging into negative levels (compared to a year ago)." "Since the global financial crisis, US output has fallen only once: from 2015 to early 2016 when the shale industry was badly hit. Markets could start to fret over a global slowdown as they have done late last year." The dollar index, which measures it against six major currencies, hit a high of 98.371 on Thursday US time. It was last quoted at 97.847, little changed on the day. The euro on Thursday slumped to levels last seen in May 2017 as a recovery in eurozone business activity was weaker than expected. Early Friday, the currency was flat on the day at $1.1181. Sterling weakened again on Thursday as pressure mounted on British Prime Minister Theresa May to name a date for her departure after a backlash over her last-ditch plans for Britain's exit from the European Union. The pound was last traded at $1.2663, little changed on the day. Sterling suffered its 14th consecutive day of losses against the euro on Thursday, its longest losing streak on record. It stood at 0.8829 pounds to the euro. Other major currencies were relatively calm. The dollar was holding at 109.59 yen, flat on the day. In commodity markets, oil prices tumbled on Thursday as trade tensions dampened the demand outlook, with the crude benchmarks posting their biggest daily falls in six months. Oil prices stabilised on Friday amid OPEC supply cuts and tensions in the Middle East. US crude was last seen at $58.58 a barrel, up 1.16%, after Thursday's 5.7% fall that took it to the lowest in two months. Brent crude futures rebounded 1.18% to $68.56 per barrel, after falling 4.6% in the previous session.

Asia stocks flat as trade worries linger, Europe to open higher

<a href="https://www.wionews.com/business-economy/oil-slides-on-rising-us-crude-stockpiles-saudi-arabia-vow-to-keep-market-balanced-220549">Oil&nbsp;prices</a>&nbsp;dropped on Thursday, extending&nbsp;falls from the previous&nbsp;session amid&nbsp;surging&nbsp;US&nbsp;crude&nbsp;inventories and weak demand from refineries.

Brent&nbsp;crude&nbsp;futures, the international benchmark for&nbsp;oil&nbsp;prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close.

The US&nbsp;West Texas Intermediate (WTI)&nbsp;crude&nbsp;futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel.

Crude&nbsp;futures already fell by around 2 per cent the previous&nbsp;day.

"Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on&nbsp;prices)," said Edward Moya, senior analyst at futures brokerage OANDA.

US crude&nbsp;oil&nbsp;inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday.

Commercial US&nbsp;crude&nbsp;inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed.

Beyond weak refinery demand for feedstock&nbsp;crude&nbsp;oil, the increase in commercial inventories also came on the back of planned sales of US&nbsp;strategic petroleum reserves (SPR) into the commercial market.

US crude&nbsp;oil&nbsp;production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month.

Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns&nbsp;about slowing (oil) demand growth due to the negative impact on the global economy of the <a href="https://www.wionews.com/business-economy/wall-street-shudders-as-us-china-trade-war-intensifies-218493">US-China&nbsp;trade war</a>" were also weighing on&nbsp;oil&nbsp;prices.

Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market.

"Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on&nbsp;oil&nbsp;markets published this week.

"Macroeconomic&nbsp;data has rapidly deteriorated, and this is reflected in weaker&nbsp;oil&nbsp;demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US&nbsp;bank said.

"On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019.

French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place.

"Supply management is here to stay," the bank said.

Oil prices dropped on Thursday, extending falls from the previous session amid surging US crude inventories and weak demand from refineries. Brent crude futures, the international benchmark for oil prices, were at $70.62 per barrel at 0109 GMT, down 37 cents, or 0.5 per cent, from their last close. The US West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 per cent, at $61.11 per barrel. Crude futures already fell by around 2 per cent the previous day. "Rising inventories and a slowdown with refined product demand could suggest we could see further pressure (on prices)," said Edward Moya, senior analyst at futures brokerage OANDA. US crude oil inventories rose last week, hitting their highest levels since July 2017, due to weak refinery demand, the Energy Information Administration said on Wednesday. Commercial US crude inventories rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed. Beyond weak refinery demand for feedstock crude oil, the increase in commercial inventories also came on the back of planned sales of US strategic petroleum reserves (SPR) into the commercial market. US crude oil production climbed by 100,000 barrels per day (bpd) to 12.2 million bpd, putting output near its record of 12.3 million bpd reached late last month. Ole Hansen, head of the commodity strategy at Saxo Bank, said "concerns about slowing (oil) demand growth due to the negative impact on the global economy of the US-China trade war" were also weighing on oil prices. Countering these bearish price factors have been escalating political tensions between the United States and Iran, as well as ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) that started in January in an effort to prop up the market. "Large but opposing forces have kept Brent in a $70-$75 per barrel range in recent weeks," Morgan Stanley said in a note on oil markets published this week. "Macroeconomic data has rapidly deteriorated, and this is reflected in weaker oil demand. At the same time, the downside risk to supply is materialising in key countries (adding to OPEC's production cuts)," the US bank said. "On balance, however, we still see tightness in 2H19," Morgan Stanley said, adding it expected Brent to trade in the $75-$80 per barrel range in the second half of 2019. French bank BNP Paribas said high inventories meant that OPEC would likely keep its voluntary supply cuts in place. "Supply management is here to stay," the bank said.

<a href="https://www.wionews.com/world/fears-rise-china-could-weaponise-rare-earths-in-us-tech-war-220603">China</a> warned the United States on Thursday that it must show "sincerity" if trade talks are to continue between the world's top two economies, stressing that Beijing would "not yield" on major principles.

"If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing," commerce ministry spokesman Gao Feng said at a press briefing.

The world's two largest economies have escalated tariff increases on each other's imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd.

The listing, which curbs Huawei's access to US-made components, is a potentially devastating blow for the company that has rattled technology supply chains and investors, and saw several mobile carriers on Wednesday delay the launch of new Huawei smartphone handsets.

No further&nbsp;trade&nbsp;talks between top Chinese and US&nbsp;negotiators have been scheduled since the last round ended on May 10, the same day President Donald Trump increased tariffs on $200 billion worth of Chinese goods and took steps to levy duties on all remaining Chinese imports.

Negotiations between the United States and&nbsp;China&nbsp;have stalled since early May, when Chinese officials sought major changes to the text of a proposed deal that the Trump administration says had been largely agreed.

However, Chinese Ambassador to the United States Cui Tiankai, speaking to the Fox News Channel, said on Tuesday that Beijing was still open for talks.

Repercussions of the blacklisting mounted for Huawei, with some mobile operators, including the Ymobile unit of Japan's Softbank Corp and rival KDDI Corp putting launch plans for Huawei's new P30 Lite smartphone on hold.

Another big Chinese tech firm, video surveillance equipment maker Hikvision Digital Technology Co Ltd, could also face limits on its ability to buy US technology, the New York Times reported, citing people familiar with the matter, sending the firm's Shenzhen-listed shares down 5.54 per cent.

&nbsp;

China warned the United States on Thursday that it must show "sincerity" if trade talks are to continue between the world's top two economies, stressing that Beijing would "not yield" on major principles.

China warned the United States on Thursday that it must show "sincerity" if trade talks are to continue between the world's top two economies, stressing that Beijing would "not yield" on major principles. "If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing," commerce ministry spokesman Gao Feng said at a press briefing. The world's two largest economies have escalated tariff increases on each other's imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd. The listing, which curbs Huawei's access to US-made components, is a potentially devastating blow for the company that has rattled technology supply chains and investors, and saw several mobile carriers on Wednesday delay the launch of new Huawei smartphone handsets. No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended on May 10, the same day President Donald Trump increased tariffs on $200 billion worth of Chinese goods and took steps to levy duties on all remaining Chinese imports. Negotiations between the United States and China have stalled since early May, when Chinese officials sought major changes to the text of a proposed deal that the Trump administration says had been largely agreed. However, Chinese Ambassador to the United States Cui Tiankai, speaking to the Fox News Channel, said on Tuesday that Beijing was still open for talks. Repercussions of the blacklisting mounted for Huawei, with some mobile operators, including the Ymobile unit of Japan's Softbank Corp and rival KDDI Corp putting launch plans for Huawei's new P30 Lite smartphone on hold. Another big Chinese tech firm, video surveillance equipment maker Hikvision Digital Technology Co Ltd, could also face limits on its ability to buy US technology, the New York Times reported, citing people familiar with the matter, sending the firm's Shenzhen-listed shares down 5.54 per cent.

China says US must show 'sincerity' for trade talks to continue

China must prepare for difficult times as the international situation is increasingly complex, President Xi Jinping said in comments carried by state media on Wednesday, as the country faces increased tariffs in a bitter trade war with Washington.

The two countries are locked in tit-for-tat tariff increases on each other's imports, after talks broke down to resolve their dispute.

Acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd, a potentially devastating blow for the company that has rattled technology supply chains and investors.

During a three-day trip this week to the southern province of Jiangxi, one of the cradles of China's Communist revolution, Xi urged people to learn the lessons of hardship of the past.

"Today, on the new Long March, we must overcome various major risks and challenges from home and abroad and win new victories for socialism with Chinese characteristics," state news agency Xinhua paraphrased Xi as saying.

"Our country is still in a period of important strategic opportunities for development, but the international situation is increasingly complicated," he added.

"We must be conscious of the long-term and complex nature of various unfavourable factors at home and abroad, and appropriately prepare for various difficult situations."

The report did not elaborate on those difficulties, and nor was there a direct mention of the trade war or of the United States.

Xi also talked about the importance of technology, and "emphasised that technology innovation is the lifeblood of companies".

"Only by having indigenous intellectual property and core technology can products possessing core competitiveness be produced, and only then can an invincible position be attained amid fierce competition."

China must master more core technologies and seize the "high ground" in industrial development, he added.

Xi visited a rare earths firm too, sparking speculation the sector could be the next front in the Sino-US trade war.

Xi learned in detail about China's rare earth resource situation, exploitation techniques, applications, and environmental protection measures, Xinhua said.

"Rare earths are important strategic resources, and are non-renewable resources."

China must prepare for difficult times as the international situation is increasingly complex, President Xi Jinping said in comments carried by state media on Wednesday, as the country faces increased tariffs in a bitter trade war with Washington.

China must prepare for difficult times as the international situation is increasingly complex, President Xi Jinping said in comments carried by state media on Wednesday, as the country faces increased tariffs in a bitter trade war with Washington. The two countries are locked in tit-for-tat tariff increases on each other's imports, after talks broke down to resolve their dispute. Acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd, a potentially devastating blow for the company that has rattled technology supply chains and investors. During a three-day trip this week to the southern province of Jiangxi, one of the cradles of China's Communist revolution, Xi urged people to learn the lessons of hardship of the past. "Today, on the new Long March, we must overcome various major risks and challenges from home and abroad and win new victories for socialism with Chinese characteristics," state news agency Xinhua paraphrased Xi as saying. "Our country is still in a period of important strategic opportunities for development, but the international situation is increasingly complicated," he added. "We must be conscious of the long-term and complex nature of various unfavourable factors at home and abroad, and appropriately prepare for various difficult situations." The report did not elaborate on those difficulties, and nor was there a direct mention of the trade war or of the United States. Xi also talked about the importance of technology, and "emphasised that technology innovation is the lifeblood of companies". "Only by having indigenous intellectual property and core technology can products possessing core competitiveness be produced, and only then can an invincible position be attained amid fierce competition." China must master more core technologies and seize the "high ground" in industrial development, he added. Xi visited a rare earths firm too, sparking speculation the sector could be the next front in the Sino-US trade war. Xi learned in detail about China's rare earth resource situation, exploitation techniques, applications, and environmental protection measures, Xinhua said. "Rare earths are important strategic resources, and are non-renewable resources."

Get ready for difficult times, China's Xi warns during trade war

After Android ban, will Huawei develop own operation system?

<a href="https://www.wionews.com/india-news/amidst-us-china-trade-war-american-companies-can-shift-focus-to-india-experts-220268">Amidst US-China trade war, American companies can shift focus to India: Experts</a>

Exploring the possibility of developing India as an alternative in the midst of a US-China trade war, the American corporate sector eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say.

<a href="https://www.wionews.com/world/todays-situation-not-suitable-for-talks-choice-is-resistance-only-irans-rouhani-220250">Today's situation not suitable for talks, choice is resistance only: Iran's Rouhani</a>

Iranian President Hassan Rouhani said he would be willing for talks with the US but not under the current situation, local media IRNA reported on Monday.

"Today's situation is not suitable for talks and our choice is resistance only" IRNA quoted Rouhani as saying.

<a href="https://www.wionews.com/world/huawei-founder-says-us-underestimates-company-cant-be-isolated-220252">Huawei founder says US underestimates company, 'can't be isolated'</a>

Huawei founder Ren Zhengfei struck a defiant tone Tuesday against US attempts to block his company's global ambitions, saying the US "underestimates" the telecom giant's strength.

<a href="https://www.wionews.com/sports/andreas-nikolaus-niki-lauda-three-time-formula-one-champion-dies-at-70-220260">Andreas Nikolaus 'Niki' Lauda, three-time Formula One champion, dies at 70</a>

The former Formula One driver and three-time world champion Andreas Nikolaus “Niki” Lauda has died at the age of 70.&nbsp;

The Austrian formula one driver died on Monday night after undergoing kidney dialysis.

<a href="https://www.wionews.com/world/indonesias-joko-widodo-wins-second-term-as-president-220251">Indonesia's Joko Widodo wins second term as president</a>

Indonesia's Joko Widodo won another term as president of the world's third-biggest democracy, official results showed Tuesday, after his rival Prabowo Subianto, a retired general, alleged widespread cheating.

Amidst US-China trade war, American companies can shift focus to India: Experts Exploring the possibility of developing India as an alternative in the midst of a US-China trade war, the American corporate sector eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say.

Amidst US-China trade war, American companies can shift focus to India: Experts Exploring the possibility of developing India as an alternative in the midst of a US-China trade war, the American corporate sector eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say. Today's situation not suitable for talks, choice is resistance only: Iran's Rouhani Iranian President Hassan Rouhani said he would be willing for talks with the US but not under the current situation, local media IRNA reported on Monday. "Today's situation is not suitable for talks and our choice is resistance only" IRNA quoted Rouhani as saying. Huawei founder says US underestimates company, 'can't be isolated' Huawei founder Ren Zhengfei struck a defiant tone Tuesday against US attempts to block his company's global ambitions, saying the US "underestimates" the telecom giant's strength. Andreas Nikolaus 'Niki' Lauda, three-time Formula One champion, dies at 70 The former Formula One driver and three-time world champion Andreas Nikolaus “Niki” Lauda has died at the age of 70. The Austrian formula one driver died on Monday night after undergoing kidney dialysis. Indonesia's Joko Widodo wins second term as president Indonesia's Joko Widodo won another term as president of the world's third-biggest democracy, official results showed Tuesday, after his rival Prabowo Subianto, a retired general, alleged widespread cheating.

News brief: Big stories of the day

Exploring the possibility of developing India as an alternative in the midst of a <a href="https://www.wionews.com/world/huawei-founder-says-us-underestimates-company-cant-be-isolated-220252">US-China trade war</a>, the <a href="https://www.wionews.com/world/us-eases-some-restrictions-on-chinas-huawei-to-keep-networks-operating-220249">American corporate sector</a> eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say.

"US companies are looking for transparency and consistency in the policy framework. They would appreciate a consultative process (in) framing policies," Mukesh Aghi, president of the US-India Strategic and Partnership Forum said, ahead of the declaration of the election results on May 23.

India, Aghi asserted, has "a fantastic opportunity" to attract US and European\ companies as China trade relations get strained with its partners.&nbsp;

"These companies would consider India if ease of business improves along with predictability, otherwise countries like Vietnam and Cambodia are successfully attracting these companies," Aghi said in response to a question.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-us-china-trade-war-no-end-in-sight-220243/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The new government will need to look closely at what it can do to unleash growth and create jobs because India must tackle its own apparent economic slowdown, Alyssa Ayres, from the Council on Foreign Relations think tank, told PTI.

"Economists have long recommended structural reforms as the way to do that which would likely help India address the complaints from the US and others about difficulties of doing business in the country," Ayres said in response to a question.&nbsp;

Although the final results are yet to be declared and may hold some surprises, there are several issues that whoever comes to power would need to grapple with, observed Anit Mukherjee, a policy fellow at the Center for Global Development, a think tank in Washington DC.

But the broad theme would be on the consolidation of the gains of the past five years and ushering in some much-needed reforms to accelerate growth and reduce poverty, he said.

Noting that India's economy has gone through a period of consistent, if not spectacular, growth over the last five years -- this in spite of demonetization, GST, and the NPA and farm crises — Mukherjee said this provides a platform for higher growth in the next five years.&nbsp;

"But this will depend largely on how the government can steer the macroeconomy, streamline GST, address non-performing assets and mitigate the farm crisis," he said.

There will be headwinds&nbsp;oil prices are increasing, external trade environment is hostile, vested interests have scuttled plans to reform PSU banks, and the government does not seem to have much appetite to reform agricultural markets apart from announcing a cash transfer programme just before the elections, he added.

India, he said, is going through a rapid digital transformation. Aadhaar is now almost universal, its use is now pretty well defined following the Supreme Court judgement, Mukherjee said, adding that India's financial inclusion is now among the highest in the world (over 80 per cent), thanks largely to the Jan Dhan program; and mobile phone use is ubiquitous, serving a data-hungry population.&nbsp;

"So the building blocks of a digital economy is in place and India is poised to take a big leap in the next five years. The government needs to recognise that and bring policy and regulatory clarity, especially data sharing, trade in data services and privacy protection," he said.&nbsp;

Observing that India's rise as an economic power comes with responsibilities, Mukherjee said New Delhi would do well to learn the lessons from China, which is facing a backlash over its trade and investment policies, as well its domestic policies favouring large technology firms that are perceived as a threat (eg. Blacklisting of Huawei for 5G telecom equipment and Google's decision not to allow future Android OS updates to run on Huawei smartphones).&nbsp;

"India has so far refused to engage with the US and the EU on the global E-commerce and data governance architecture but it would do well not to be sidelined in the discussions," he said in response to another question.

"It is in everyone's interest that India becomes a hub of digital innovation and commerce, with a level playing field that does not discriminate in favour of any particular special interest group," Mukherjee said.

Exploring the possibility of developing India as an alternative in the midst of a US-China trade war, the American corporate sector eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say.

Exploring the possibility of developing India as an alternative in the midst of a US-China trade war, the American corporate sector eagerly looks forward to the election results and hopes that the new government adopts a "consultative process" in framing policies, experts say. "US companies are looking for transparency and consistency in the policy framework. They would appreciate a consultative process (in) framing policies," Mukesh Aghi, president of the US-India Strategic and Partnership Forum said, ahead of the declaration of the election results on May 23. India, Aghi asserted, has "a fantastic opportunity" to attract US and European\ companies as China trade relations get strained with its partners. "These companies would consider India if ease of business improves along with predictability, otherwise countries like Vietnam and Cambodia are successfully attracting these companies," Aghi said in response to a question. The new government will need to look closely at what it can do to unleash growth and create jobs because India must tackle its own apparent economic slowdown, Alyssa Ayres, from the Council on Foreign Relations think tank, told PTI. "Economists have long recommended structural reforms as the way to do that which would likely help India address the complaints from the US and others about difficulties of doing business in the country," Ayres said in response to a question. Although the final results are yet to be declared and may hold some surprises, there are several issues that whoever comes to power would need to grapple with, observed Anit Mukherjee, a policy fellow at the Center for Global Development, a think tank in Washington DC. But the broad theme would be on the consolidation of the gains of the past five years and ushering in some much-needed reforms to accelerate growth and reduce poverty, he said. Noting that India's economy has gone through a period of consistent, if not spectacular, growth over the last five years -- this in spite of demonetization, GST, and the NPA and farm crises — Mukherjee said this provides a platform for higher growth in the next five years. "But this will depend largely on how the government can steer the macroeconomy, streamline GST, address non-performing assets and mitigate the farm crisis," he said. There will be headwinds oil prices are increasing, external trade environment is hostile, vested interests have scuttled plans to reform PSU banks, and the government does not seem to have much appetite to reform agricultural markets apart from announcing a cash transfer programme just before the elections, he added. India, he said, is going through a rapid digital transformation. Aadhaar is now almost universal, its use is now pretty well defined following the Supreme Court judgement, Mukherjee said, adding that India's financial inclusion is now among the highest in the world (over 80 per cent), thanks largely to the Jan Dhan program; and mobile phone use is ubiquitous, serving a data-hungry population. "So the building blocks of a digital economy is in place and India is poised to take a big leap in the next five years. The government needs to recognise that and bring policy and regulatory clarity, especially data sharing, trade in data services and privacy protection," he said. Observing that India's rise as an economic power comes with responsibilities, Mukherjee said New Delhi would do well to learn the lessons from China, which is facing a backlash over its trade and investment policies, as well its domestic policies favouring large technology firms that are perceived as a threat (eg. Blacklisting of Huawei for 5G telecom equipment and Google's decision not to allow future Android OS updates to run on Huawei smartphones). "India has so far refused to engage with the US and the EU on the global E-commerce and data governance architecture but it would do well not to be sidelined in the discussions," he said in response to another question. "It is in everyone's interest that India becomes a hub of digital innovation and commerce, with a level playing field that does not discriminate in favour of any particular special interest group," Mukherjee said.

Amidst US-China trade war, American companies can shift focus to India: Experts

European firms are "caught in the crossfire" of the <a href="https://www.wionews.com/business-economy/us-recession-risk-rises-as-us-china-trade-tensions-heat-up-report-219279">US-China trade war</a> and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday.

The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China.

"Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule.

"The trade tensions, according to our members, are not good for business".

According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent).

The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased.

They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other.

But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products.

Many European companies manufacture products in China and export them all over the world.

A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe.

But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing.

"The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed.

Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway.

This state of affairs was "not acceptable", Roule said.

"The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said.

'Ambiguous rules'

More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts.

State firms and their subsidies are their main bone of contention.

The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts.

And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago.

Half do not expect to see a level playing field in the next five years or even beyond.

Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies.

Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents.

Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday.

European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday. The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China. "Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule. "The trade tensions, according to our members, are not good for business". According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent). The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased. They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other. But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products. Many European companies manufacture products in China and export them all over the world. A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe. But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing. "The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed. Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway. This state of affairs was "not acceptable", Roule said. "The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said. 'Ambiguous rules' More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts. State firms and their subsidies are their main bone of contention. The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts. And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago. Half do not expect to see a level playing field in the next five years or even beyond. Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies. Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents. Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

EU firms 'caught in crossfire' of US-China trade war

European firms are "caught in the crossfire" of the <a href="https://www.wionews.com/world/eu-firms-caught-in-crossfire-of-us-china-trade-war-220067">US-China trade war </a>and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday.

The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China.

"Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule.

"The trade tensions, according to our members, are not good for business".

According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent).

The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased.

They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other.

But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products.

Many European companies manufacture products in China and export them all over the world.

A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe.

But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing.

"The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed.

Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway.

"The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said.

Chinese foreign ministry spokesman Lu Kang reiterated Beijing's denial.

"We do not have a national policy of forcing foreign companies to transfer technology," Lu said at a regular press briefing.

He recalled that the country's rubber-stamp parliament adopted in March a foreign investment law that prohibits the use of "administrative means" to force the transfer of technology.

'Ambiguous rules'&nbsp;

More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts.

State firms and their subsidies are their main bone of contention.

The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts.

And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago.

Half do not expect to see a level playing field in the next five years or even beyond.

Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies.

Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents.

Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

European firms are "caught in the crossfire" of the US-China trade war and fewer are optimistic about their future in the world's second-largest economy, a business survey showed Monday. The clash between Beijing and Washington does not benefit European companies, contrary to what some might have hoped at the beginning of the dispute last year, according to the European Union Chamber of Commerce in China. "Now the trade tensions are seen as another uncertainty on the business environment, something that won't be sorted out quickly whether there is a deal or not," said chamber vice president Charlotte Roule. "The trade tensions, according to our members, are not good for business". According to the survey, the trade war is one of the top concerns for European firms in China (23 per cent), after the Chinese economic slowdown (45 per cent), the global economy (27 per cent) and rising labour costs in China (23 per cent). The study, which received replies from 585 firms, was conducted in January, as trans-Pacific trade tensions eased. They ratcheted up again in early May with the United States and China slapping steep increases in punitive customs tariffs on each other. But early this year, a quarter of European companies in China said they were already suffering from the US increase in tariffs on Chinese products. Many European companies manufacture products in China and export them all over the world. A small number (six per cent) have already relocated to circumvent the US penalties, or are planning to do so elsewhere in Asia or Europe. But Europeans say they share many of the grievances raised by the Trump administration in its campaign against Beijing. "The fundamental issues driving the trade war need to be resolved by addressing market access barriers and regulatory challenges while also tackling SOE reform and forced tech transfer," Roule stressed. Some 20 per cent of the companies surveyed complained of being forced into technology transfers for the benefit of a Chinese partner, double the figure two years ago. For a quarter (24 per cent), such transfers were currently underway. "The authorities are saying there are no technology transfers any more but this is not what we see in our survey," she said. Chinese foreign ministry spokesman Lu Kang reiterated Beijing's denial. "We do not have a national policy of forcing foreign companies to transfer technology," Lu said at a regular press briefing. He recalled that the country's rubber-stamp parliament adopted in March a foreign investment law that prohibits the use of "administrative means" to force the transfer of technology. 'Ambiguous rules' More than half of the companies said legal protection of intellectual property was "inadequate", and 45 per cent say they suffer "unequal treatment" compared to their Chinese counterparts. State firms and their subsidies are their main bone of contention. The Europeans largely accuse these companies of enjoying preferential treatment, with 62 per cent saying they have better access to public contracts. And the outlook is getting gloomier: only 45 per cent of the firms surveyed say they are optimistic about growth prospects for their sector over the next two years, compared to 62 per cent a year ago. Half do not expect to see a level playing field in the next five years or even beyond. Fifty-three per cent say business has become more difficult in the past year, up from 48 per cent a year ago, with "ambiguous rules and regulations" topping of the list of obstacles cited by companies. Difficulties with access to the internet, which is closely monitored and censored by the Communist government, is an unfavourable factor for 51 per cent of respondents. Despite the problems, China remains one of the top three global destinations for future investment by 62 per cent of the surveyed companies, a slight increase from last year, while 56 per cent plan to expand their business in the country this year.

European Union firms 'caught in crossfire' of US-China trade war

US&nbsp;Ambassador to China Terry Branstad was scheduled to visit Tibet this week, a US&nbsp;embassy spokeswoman said, the first visit to the region by a US&nbsp;ambassador since 2015, amid escalating trade tension between the two countries.

The visit follows the passing of a law in December that requires the United States to deny visas to Chinese officials in charge of implementing policies that <a href="https://www.wionews.com/world/chinese-government-systematically-impeding-travel-to-tibet-us-state-department-report-205770">restrict access to Tibet for foreigners</a>, legislation that was denounced by China.

"This visit is a chance for the ambassador to engage with local leaders to raise longstanding concerns about restrictions on religious freedom and the preservation of Tibetan culture and language," the spokeswoman said in an emailed statement.

Branstad was travelling to Qinghai province and neighbouring Tibet from May 19 to May 25 on a trip that will include official meetings as well as visits to religious and cultural heritage sites, the spokesperson said.

Chinese Foreign Ministry spokesman Lu Kang said the government welcomed Branstad's visit and he could see for himself the big changes that have taken place there since Tibet was "peacefully liberated" more than six decades ago.

China hopes that Branstad does not take any "prejudices" with him on this trip and goes with an objective attitude so he can reach his own conclusions, Lu told a daily news briefing.

"Especially on the protection and development of Tibetan culture, religion, heritage, and history, I hope that he can respect the facts and draw his own conclusions, instead of being confused and disturbed by hearsay and certain long-standing rumours and smears."

In December, China criticised the United States for passing the Reciprocal Access to Tibet Act, which seeks to promote access to Tibet for US&nbsp;diplomats and other officials, journalists and other citizens by denying US entry for Chinese officials deemed responsible for restricting access to Tibet.

The US government is required to begin denying visas by the end of this year.

Call for restraint

China says it is "resolutely opposed" to the US&nbsp;legislation on what China considers an internal affair, and it risked causing "serious harm" to their relations.

The ambassador's visit comes as tensions have been running high between the two countries over trade. China struck a more aggressive tone in its trade war with the United States on Friday, suggesting a resumption of talks between the world's two largest economies would be meaningless unless Washington changed course.

On Saturday, the Chinese government's top diplomat, Wang Yi, told US&nbsp;Secretary of State <a href="https://www.wionews.com/world/top-us-lawmakers-press-pompeo-for-answers-on-iran-arms-control-report-219258">Mike Pompeo </a>that recent US&nbsp;words and actions had harmed the interests of China and its enterprises and that Washington should show restraint.

While the Trump administration has taken a tough stance towards China on trade and highlighted security rivalry, it has not acted on congressional calls for it to impose sanctions on China's former Communist Party chief in Tibet, Chen Quanguo, for the treatment of minority Muslims in the Xinjiang region, where he is party chief.

The State Department said in a March report Chen had replicated in Xinjiang policies similar to those credited with reducing opposition to Chinese rule in Tibet.

Beijing sent troops into remote, mountainous Tibet in 1950 in what it officially terms a peaceful liberation and has ruled there with an iron fist ever since.

US Ambassador to China Terry Branstad was scheduled to visit Tibet this week, a US embassy spokeswoman said, the first visit to the region by a US ambassador since 2015, amid escalating trade tension between the two countries.

US Ambassador to China Terry Branstad was scheduled to visit Tibet this week, a US embassy spokeswoman said, the first visit to the region by a US ambassador since 2015, amid escalating trade tension between the two countries. The visit follows the passing of a law in December that requires the United States to deny visas to Chinese officials in charge of implementing policies that restrict access to Tibet for foreigners, legislation that was denounced by China. "This visit is a chance for the ambassador to engage with local leaders to raise longstanding concerns about restrictions on religious freedom and the preservation of Tibetan culture and language," the spokeswoman said in an emailed statement. Branstad was travelling to Qinghai province and neighbouring Tibet from May 19 to May 25 on a trip that will include official meetings as well as visits to religious and cultural heritage sites, the spokesperson said. Chinese Foreign Ministry spokesman Lu Kang said the government welcomed Branstad's visit and he could see for himself the big changes that have taken place there since Tibet was "peacefully liberated" more than six decades ago. China hopes that Branstad does not take any "prejudices" with him on this trip and goes with an objective attitude so he can reach his own conclusions, Lu told a daily news briefing. "Especially on the protection and development of Tibetan culture, religion, heritage, and history, I hope that he can respect the facts and draw his own conclusions, instead of being confused and disturbed by hearsay and certain long-standing rumours and smears." In December, China criticised the United States for passing the Reciprocal Access to Tibet Act, which seeks to promote access to Tibet for US diplomats and other officials, journalists and other citizens by denying US entry for Chinese officials deemed responsible for restricting access to Tibet. The US government is required to begin denying visas by the end of this year. Call for restraint China says it is "resolutely opposed" to the US legislation on what China considers an internal affair, and it risked causing "serious harm" to their relations. The ambassador's visit comes as tensions have been running high between the two countries over trade. China struck a more aggressive tone in its trade war with the United States on Friday, suggesting a resumption of talks between the world's two largest economies would be meaningless unless Washington changed course. On Saturday, the Chinese government's top diplomat, Wang Yi, told US Secretary of State Mike Pompeo that recent US words and actions had harmed the interests of China and its enterprises and that Washington should show restraint. While the Trump administration has taken a tough stance towards China on trade and highlighted security rivalry, it has not acted on congressional calls for it to impose sanctions on China's former Communist Party chief in Tibet, Chen Quanguo, for the treatment of minority Muslims in the Xinjiang region, where he is party chief. The State Department said in a March report Chen had replicated in Xinjiang policies similar to those credited with reducing opposition to Chinese rule in Tibet. Beijing sent troops into remote, mountainous Tibet in 1950 in what it officially terms a peaceful liberation and has ruled there with an iron fist ever since.

US Ambassador to China visiting Tibet this week

Huawei said on Monday it would continue to provide security updates and services for its smartphones and tablets after being <a href="https://www.wionews.com/world/google-suspends-some-business-with-huawei-after-trump-blacklist-source-220001">barred from Google updates</a> to its Android operating system.

But it did not say what would happen with phones it would sell in the future, which are unlikely to have access to Google's popular services including Gmail, YouTube and Chrome unless a special licence is obtained.

"Huawei will continue to provide security updates and after-sales services to all existing <a href="https://www.wionews.com/world/huawei-will-not-bow-to-us-pressure-founder-and-ceo-ren-zhengfei-219916">Huawei</a> and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally," a Huawei spokesman said by email.

"We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally," said Huawei, which is the world's second-biggest smartphone maker after Samsung and aspires to the top position.

Huawei's devices in its home market do not have Google apps, but the move will hugely damage the brand's appeal to consumers outside China.

Watch: Google suspends business with Huawei; big blow to Chinese tech firm

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Almost half of the 208 million phones <a href="huawei">Huawei shipped in 2018 went to outside mainland China</a>, and Europe is the most important overseas market where its devices currently have 29% market share, according to technology research firm IDC.

Google said it would enact restrictions on Android updates to Huawei after US President Donald Trump on Thursday added the Chinese company to a trade blacklist, making it extremely difficult for it to do business with US counterparts.

"We are complying with the order and reviewing the implications," a Google spokesman said.

A source told Reuters,&nbsp;"Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google."

Google, owned by Alphabet Inc, said its Google Play app store and the security protections from Google Play Protect would continue to function on existing Huawei devices.

Huawei said on Monday it would continue to provide security updates and services for its smartphones and tablets after being barred from Google updates to its Android operating system.

Huawei said on Monday it would continue to provide security updates and services for its smartphones and tablets after being barred from Google updates to its Android operating system. But it did not say what would happen with phones it would sell in the future, which are unlikely to have access to Google's popular services including Gmail, YouTube and Chrome unless a special licence is obtained. "Huawei will continue to provide security updates and after-sales services to all existing Huawei and Honor smartphone and tablet products, covering those that have been sold and that are still in stock globally," a Huawei spokesman said by email. "We will continue to build a safe and sustainable software ecosystem, in order to provide the best experience for all users globally," said Huawei, which is the world's second-biggest smartphone maker after Samsung and aspires to the top position. Huawei's devices in its home market do not have Google apps, but the move will hugely damage the brand's appeal to consumers outside China. Watch: Google suspends business with Huawei; big blow to Chinese tech firm × Almost half of the 208 million phones Huawei shipped in 2018 went to outside mainland China, and Europe is the most important overseas market where its devices currently have 29% market share, according to technology research firm IDC. Google said it would enact restrictions on Android updates to Huawei after US President Donald Trump on Thursday added the Chinese company to a trade blacklist, making it extremely difficult for it to do business with US counterparts. "We are complying with the order and reviewing the implications," a Google spokesman said. A source told Reuters, "Huawei will only be able to use the public version of Android and will not be able to get access to proprietary apps and services from Google." Google, owned by Alphabet Inc, said its Google Play app store and the security protections from Google Play Protect would continue to function on existing Huawei devices.

Huawei responds to Android ban; guarantees security support for smartphones

Asian shares suffered a fresh bout of the shakes on Friday as tough words on trade from China's media drowned out upbeat news on the US economy and corporate earnings.

Shanghai stocks led the way into the red amid the growing fallout from President Donald Trump's move to block China's Huawei Technologies from buying vital American technology.

The sense of foreboding grew as the Communist Party's People's Daily used a frontpage commentary to evoke the patriotic spirit of past wars, saying the trade war would never bring China down.

"It is hard to get too excited as the news flows in the trade front points to an escalation rather than ease in tensions," said Rodrigo Catril, senior FX strategist at National Australia Bank.

"Many commentators are suggesting the decision on Huawei and other Chinese telecos effectively means the President has taken the 'nuclear option' and it has now moved towards a 'fully-fledged' tech war with China."

Shanghai blue chips fell 2.1 per cent, while the offshore yuan eased past 6.9400 per dollar for the first time since November, 2018.

MSCI's broadest index of Asia-Pacific shares outside Japan lost early gains to fall 0.7 per cent, leaving it at 15-week lows and down 2.6 per cent for the week.

Japan's Nikkei did manage to bounce 0.9 per cent, while the main Australian index climbed to an 11-year peak as higher commodity prices boosted miners.

But E-Mini futures for the S&amp;P 500 shed 0.36% and European stock futures pointed to opening losses.

Sentiment had been briefly soothed overnight by better US economic news, with US housing starts surprisingly strong and a welcome pickup in the Philadelphia Federal Reserve's manufacturing survey.

Upbeat results from Walmart burnished the outlook for retail spending, though the giant chain also warned that tariffs would raise prices for US consumers.

As the earnings season winds down, of the 457 S&amp;P 500 companies reporting about 75% have beaten profit expectations, according to Refinitiv data.

The Dow ended Thursday with gains of 0.84 per cent, while the S&amp;P 500 added 0.89 per cent and the Nasdaq 0.97 per cent.

Pound ground down

The chillier tone in Asia helped Treasuries recoup early losses as the session wore on, with the 10-year futures contract firming 7 ticks.

The US dollar lost a little of its shine on the safe-haven yen to stand at 109.64 from a top of 110.03. Against a basket of currencies, it was a shade softer at 96.824.

Yet the euro could make no ground and held at $1.1173, down 0.5% for the week so far.

Sterling was one of the worst performers as Britain's Prime Minister Theresa May battled to keep her Brexit deal, and her premiership, intact amid growing fears of a disorderly departure from the European Union. [GBP/]

The pound touched a three-month low of $1.2783 and was down a hefty 1.6% for the week so far.

Also under pressure was the Australian dollar, losing 1.5 per cent&nbsp;for the week to $0.6890 as investors piled into bets that interest rates would be cut in June.

The main mover in Asia was cyber currency Bitcoin which tumbled over 20 per cent&nbsp;at one stage for no discernible reason. It was last down 7 per cent.

In commodity markets, spot gold steadied at $1,287.34 per ounce as risk sentiment soured.

Oil futures firmed into a fourth session as rising tensions in the Middle East stoked fears of potential supply disruptions.&nbsp;

US&nbsp;crude was last up 14 cents at $63.01 a barrel, while Brent crude futures rose 12 cents to $72.74.

Asian shares suffered a fresh bout of the shakes on Friday as tough words on trade from China's media drowned out upbeat news on the US economy and corporate earnings.

Asian shares suffered a fresh bout of the shakes on Friday as tough words on trade from China's media drowned out upbeat news on the US economy and corporate earnings. Shanghai stocks led the way into the red amid the growing fallout from President Donald Trump's move to block China's Huawei Technologies from buying vital American technology. The sense of foreboding grew as the Communist Party's People's Daily used a frontpage commentary to evoke the patriotic spirit of past wars, saying the trade war would never bring China down. "It is hard to get too excited as the news flows in the trade front points to an escalation rather than ease in tensions," said Rodrigo Catril, senior FX strategist at National Australia Bank. "Many commentators are suggesting the decision on Huawei and other Chinese telecos effectively means the President has taken the 'nuclear option' and it has now moved towards a 'fully-fledged' tech war with China." Shanghai blue chips fell 2.1 per cent, while the offshore yuan eased past 6.9400 per dollar for the first time since November, 2018. MSCI's broadest index of Asia-Pacific shares outside Japan lost early gains to fall 0.7 per cent, leaving it at 15-week lows and down 2.6 per cent for the week. Japan's Nikkei did manage to bounce 0.9 per cent, while the main Australian index climbed to an 11-year peak as higher commodity prices boosted miners. But E-Mini futures for the S&P 500 shed 0.36% and European stock futures pointed to opening losses. Sentiment had been briefly soothed overnight by better US economic news, with US housing starts surprisingly strong and a welcome pickup in the Philadelphia Federal Reserve's manufacturing survey. Upbeat results from Walmart burnished the outlook for retail spending, though the giant chain also warned that tariffs would raise prices for US consumers. As the earnings season winds down, of the 457 S&P 500 companies reporting about 75% have beaten profit expectations, according to Refinitiv data. The Dow ended Thursday with gains of 0.84 per cent, while the S&P 500 added 0.89 per cent and the Nasdaq 0.97 per cent. Pound ground down The chillier tone in Asia helped Treasuries recoup early losses as the session wore on, with the 10-year futures contract firming 7 ticks. The US dollar lost a little of its shine on the safe-haven yen to stand at 109.64 from a top of 110.03. Against a basket of currencies, it was a shade softer at 96.824. Yet the euro could make no ground and held at $1.1173, down 0.5% for the week so far. Sterling was one of the worst performers as Britain's Prime Minister Theresa May battled to keep her Brexit deal, and her premiership, intact amid growing fears of a disorderly departure from the European Union. [GBP/] The pound touched a three-month low of $1.2783 and was down a hefty 1.6% for the week so far. Also under pressure was the Australian dollar, losing 1.5 per cent for the week to $0.6890 as investors piled into bets that interest rates would be cut in June. The main mover in Asia was cyber currency Bitcoin which tumbled over 20 per cent at one stage for no discernible reason. It was last down 7 per cent. In commodity markets, spot gold steadied at $1,287.34 per ounce as risk sentiment soured. Oil futures firmed into a fourth session as rising tensions in the Middle East stoked fears of potential supply disruptions. US crude was last up 14 cents at $63.01 a barrel, while Brent crude futures rose 12 cents to $72.74.

Global Markets: Asia shares shudder as Beijing talks tough

Over the last month the US-China trade war has boosted the risk of a US recession, say a strong majority of economists polled by Reuters, who now put the chances of that happening in the next two years at 40%.

That is up from a median 35% in last month's poll, the first time it had dipped slightly from where it held since December last year, before a crushing sell-off on Wall Street as 2018 came to a close, in part because of those worries.

US President Donald Trump has dismissed the ongoing trade war with China as a "little squabble," but there are clear signs of the conflict already having an impact on the economy, and the stock market has become jittery again.

"I have a hard time thinking of a scenario in which a further escalation of the trade tension we currently have would not make recession risk higher," said Michael Hanson, head of global macro strategy at TD Securities.

"We are already in a situation where the level of tariffs that are either imposed or threatened to be imposed over the next several weeks are really quite high ... and a move to basically putting tariffs of 25% on everything we import from China is a very real drag in the economy," said Hanson.

While only a single-digit percentage of respondents say a US&nbsp;recession is likely in the coming year, more than one-quarter of economists polled see a greater than 50% probability of recession within two years.

The most pessimistic call for the probability of a recession in one year also has crept up, from 60% to 70%.

The US&nbsp;economy is forecast to have already lost considerable momentum, slowing to 2.0% in the current quarter from 3.2% in the first three months of the year, according to median forecasts from the latest monthly poll of 120 economists.

That forecast for April-June is a sharp downgrade from 2.5% in last month's poll, owing in part to the unexpectedly strong figure reported for January-March. Growth is forecast to slow to 1.8%, below trend, by the fourth quarter of 2020.

The impact of the trade war is already being felt on the economy, with retail giants like Walmart Inc warning shoppers that prices will rise due to higher tariffs on Chinese imports.

Nearly 75% of economists or 52 of 70, who answered an additional question on what the US-China trade war developments this month had done to the risks of a US&nbsp;recession said they had increased.

China is trying to steer its economy away from exporting cheap goods and more toward domestic consumption. But the United States, already a very consumer-reliant economy, imports hundreds of billions of dollars worth of goods from China, which the Trump administration is hitting with tariffs.

Very few economists believe this will do anything but damage the economy.

"There actually seems to be a belief in the White House that trade wars are both good and winnable. Delusion creates massive risks," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

With trade uncertainty abounding and increased chances of recession, the Federal Reserve is expected to hold rates at their current 2.25-2.50% until the end of next year at least.

But over half of the smaller set of economists who answered another additional question said the Fed is likely to cut rates before end-2020. Among those respondents, more than 80 per cent expect a rate cut to be the central bank's next policy move.

Although Fed officials had previously played down the trade war's likely impact on the U.S. economy, they emphasized on Monday a protracted tit-for-tat battle was a different matter that might require a Fed response.

While interest rate futures are pricing in a cut as soon as October, the Reuters poll results are the latest evidence to suggest that the global policy rate cycle following the Great Recession over a decade ago is over.

Underlining a weak demand outlook, forecasts for core PCE, the Fed's preferred inflation gauge, were cut to average 1.7% from 1.9% this year and to 2.0% from 2.1% in 2020.

"If we have a recession, it will likely be caused by the Fed. We're in a chronic disinflationary environment, caused by the supply side of the equation, not the demand side," said Gary Cloud, co-chief investment officer for fixed income at FCI Advisors.

Over the last month the US-China trade war has boosted the risk of a US recession, say a strong majority of economists polled by Reuters, who now put the chances of that happening in the next two years at 40%.

Over the last month the US-China trade war has boosted the risk of a US recession, say a strong majority of economists polled by Reuters, who now put the chances of that happening in the next two years at 40%. That is up from a median 35% in last month's poll, the first time it had dipped slightly from where it held since December last year, before a crushing sell-off on Wall Street as 2018 came to a close, in part because of those worries. US President Donald Trump has dismissed the ongoing trade war with China as a "little squabble," but there are clear signs of the conflict already having an impact on the economy, and the stock market has become jittery again. "I have a hard time thinking of a scenario in which a further escalation of the trade tension we currently have would not make recession risk higher," said Michael Hanson, head of global macro strategy at TD Securities. "We are already in a situation where the level of tariffs that are either imposed or threatened to be imposed over the next several weeks are really quite high ... and a move to basically putting tariffs of 25% on everything we import from China is a very real drag in the economy," said Hanson. While only a single-digit percentage of respondents say a US recession is likely in the coming year, more than one-quarter of economists polled see a greater than 50% probability of recession within two years. The most pessimistic call for the probability of a recession in one year also has crept up, from 60% to 70%. The US economy is forecast to have already lost considerable momentum, slowing to 2.0% in the current quarter from 3.2% in the first three months of the year, according to median forecasts from the latest monthly poll of 120 economists. That forecast for April-June is a sharp downgrade from 2.5% in last month's poll, owing in part to the unexpectedly strong figure reported for January-March. Growth is forecast to slow to 1.8%, below trend, by the fourth quarter of 2020. The impact of the trade war is already being felt on the economy, with retail giants like Walmart Inc warning shoppers that prices will rise due to higher tariffs on Chinese imports. Nearly 75% of economists or 52 of 70, who answered an additional question on what the US-China trade war developments this month had done to the risks of a US recession said they had increased. China is trying to steer its economy away from exporting cheap goods and more toward domestic consumption. But the United States, already a very consumer-reliant economy, imports hundreds of billions of dollars worth of goods from China, which the Trump administration is hitting with tariffs. Very few economists believe this will do anything but damage the economy. "There actually seems to be a belief in the White House that trade wars are both good and winnable. Delusion creates massive risks," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. With trade uncertainty abounding and increased chances of recession, the Federal Reserve is expected to hold rates at their current 2.25-2.50% until the end of next year at least. But over half of the smaller set of economists who answered another additional question said the Fed is likely to cut rates before end-2020. Among those respondents, more than 80 per cent expect a rate cut to be the central bank's next policy move. Although Fed officials had previously played down the trade war's likely impact on the U.S. economy, they emphasized on Monday a protracted tit-for-tat battle was a different matter that might require a Fed response. While interest rate futures are pricing in a cut as soon as October, the Reuters poll results are the latest evidence to suggest that the global policy rate cycle following the Great Recession over a decade ago is over. Underlining a weak demand outlook, forecasts for core PCE, the Fed's preferred inflation gauge, were cut to average 1.7% from 1.9% this year and to 2.0% from 2.1% in 2020. "If we have a recession, it will likely be caused by the Fed. We're in a chronic disinflationary environment, caused by the supply side of the equation, not the demand side," said Gary Cloud, co-chief investment officer for fixed income at FCI Advisors.

US recession risk rises as US-China trade tensions heat up: Report

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WION Speed News: Watch top national and international news of the day, May 15th, 2019

US stocks closed sharply lower Monday, with the S&P 500 and the Dow logging their worst day since January 3, as China moved to raise tariffs on US goods and take other retaliatory measures after Washington last week increased duties on Chinese imports.

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