As the US leads a drive for the West to shun <a href="https://www.wionews.com/world/huawei-obtains-46-commercial-5g-contracts-in-30-countries-225175">Huawei</a> over security fears, the Chinese tech giant has sought to strengthen its position in Africa, where it is already well-established.

Huawei has taken a leading role in developing next-generation 5G mobile phone networks around the world.

But it has been in turmoil since Washington charged its equipment could serve as a Trojan horse for Chinese intelligence services.

The world's second smartphone marker fiercely denies the allegations, but the US has urged countries to avoid it and several companies have distanced themselves.

They include Google, whose Android operating system runs most smartphones.

Watch: Huawei says it's a 'victim of bullying by the US administration'

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And as Washington and Beijing duke it out in an escalating trade war, nations around the world are faced with the dilemma of having to choose a side between the world's two top economies.

Russian President Vladimir Putin weighed in on Friday, slamming Washington's attempt to "unceremoniously push" Huawei out of the global market. Earlier in the week, Russia's MTS telecoms giant signed a deal with Huawei to develop a 5G network in the country.

Chinese President Xi Jinping, a guest of Putin at an economic forum in Saint Petersburg, said China was "ready to share technological inventions with all partners, in particular 5G technology".

But will the escalating fight lead to African nations having to choose between China -- the continent's top trade partner -- and the US?

"For African countries this trade war may end up a binary choice. It will be very difficult for Africa to just ignore" it, said Aly-Khan Satchu, an independent economic analyst based in Nairobi.

'Very aggressive strategy'

Huawei, now a major factor in US-Chinese tensions, has looked to strengthen its ties in Africa, last week signing an agreement to reinforce its cooperation with the African Union.

"This was a way to show that Huawei is still present in Africa and that they want to remain a major player by positioning themselves in this very important growth sector," said Ruben Nizard, an economist and Sub-Saharan Africa specialist at the French financial services firm Coface.

The deal comes after the French newspaper Le Monde reported in 2018 that China had spied on the AU's headquarters in Ethiopian capital Addis Ababa, citing sources inside the organisation.

The report said the spying began in 2012 after the completion of the AU's new headquarters that was financed by China, and was only noticed when technicians discovered data on the building's servers was being sent to Shanghai.

Both China and the AU reject the allegations.

Huawei has established itself across Africa since launching in Kenya in 1998, and now operates in 40 countries, providing 4G networks to more than half of the continent.

It will also showcase 5G -- the next-generation mobile phone network that will transmit data at far greater speeds -- in Egypt for the Africa Cup of Nations, which will be held from June 21 to July 19.

"Africa is a market Huawei had identified and which they conquered thanks to a very aggressive strategy based on cheap financing and speed of execution," Satchu told AFP.

"The fact that Huawei has equipped the AU says it all," he added.

'Big Brother Beijing'

Huawei's presence in Africa goes far beyond selling smartphones and building mobile networks.

In South Africa, it provides training at the country's top universities, this year launching a specialised course on 5G.

Kenya's government signed a 17.5-billion-shilling ($172 million) deal with Huawei in April to build a data centre and "smart city" services.

The Chinese giant also offers a "safe city" surveillance programme.

This initiative, according to the firm's website, "can prevent crimes targeted towards the normal citizen, tourists, students, elderly persons etc before they occur".

It has been deployed in Kenya's capital Nairobi as well as Mauritius, with 4,000 "smart" surveillance video cameras set up at 2,000 sites across the Indian Ocean island nation.

Some media outlets in Mauritius have condemned the system as "digital dictatorship" from "Big Brother Beijing".

But Ghanaian Security Ministry Albert Kan-Dapaah, for one, says Huawei's video surveillance technology helps catch criminals.

"When a crime has been committed, thanks to the cameras, we work magic," Kan-Dapaah says in a promotional video for the Chinese firm.

Huawei Marine, the company's submarine cable arm, is helping to deploy a key 12,000-kilometre (7,450-mile) cable system connecting Africa to Asia.

With Huawei so deeply embedded in Africa, the continent may find it difficult to avoid becoming a collateral victim of the US-China bust-up.

"Africa is caught in the middle of a trade war that they should not have to take part in, because they have nothing to gain," said Nizard.

As the US leads a drive for the West to shun Huawei over security fears, the Chinese tech giant has sought to strengthen its position in Africa, where it is already well-established.

As the US leads a drive for the West to shun Huawei over security fears, the Chinese tech giant has sought to strengthen its position in Africa, where it is already well-established. Huawei has taken a leading role in developing next-generation 5G mobile phone networks around the world. But it has been in turmoil since Washington charged its equipment could serve as a Trojan horse for Chinese intelligence services. The world's second smartphone marker fiercely denies the allegations, but the US has urged countries to avoid it and several companies have distanced themselves. They include Google, whose Android operating system runs most smartphones. Watch: Huawei says it's a 'victim of bullying by the US administration' × And as Washington and Beijing duke it out in an escalating trade war, nations around the world are faced with the dilemma of having to choose a side between the world's two top economies. Russian President Vladimir Putin weighed in on Friday, slamming Washington's attempt to "unceremoniously push" Huawei out of the global market. Earlier in the week, Russia's MTS telecoms giant signed a deal with Huawei to develop a 5G network in the country. Chinese President Xi Jinping, a guest of Putin at an economic forum in Saint Petersburg, said China was "ready to share technological inventions with all partners, in particular 5G technology". But will the escalating fight lead to African nations having to choose between China -- the continent's top trade partner -- and the US? "For African countries this trade war may end up a binary choice. It will be very difficult for Africa to just ignore" it, said Aly-Khan Satchu, an independent economic analyst based in Nairobi. 'Very aggressive strategy' Huawei, now a major factor in US-Chinese tensions, has looked to strengthen its ties in Africa, last week signing an agreement to reinforce its cooperation with the African Union. "This was a way to show that Huawei is still present in Africa and that they want to remain a major player by positioning themselves in this very important growth sector," said Ruben Nizard, an economist and Sub-Saharan Africa specialist at the French financial services firm Coface. The deal comes after the French newspaper Le Monde reported in 2018 that China had spied on the AU's headquarters in Ethiopian capital Addis Ababa, citing sources inside the organisation. The report said the spying began in 2012 after the completion of the AU's new headquarters that was financed by China, and was only noticed when technicians discovered data on the building's servers was being sent to Shanghai. Both China and the AU reject the allegations. Huawei has established itself across Africa since launching in Kenya in 1998, and now operates in 40 countries, providing 4G networks to more than half of the continent. It will also showcase 5G -- the next-generation mobile phone network that will transmit data at far greater speeds -- in Egypt for the Africa Cup of Nations, which will be held from June 21 to July 19. "Africa is a market Huawei had identified and which they conquered thanks to a very aggressive strategy based on cheap financing and speed of execution," Satchu told AFP. "The fact that Huawei has equipped the AU says it all," he added. 'Big Brother Beijing' Huawei's presence in Africa goes far beyond selling smartphones and building mobile networks. In South Africa, it provides training at the country's top universities, this year launching a specialised course on 5G. Kenya's government signed a 17.5-billion-shilling ($172 million) deal with Huawei in April to build a data centre and "smart city" services. The Chinese giant also offers a "safe city" surveillance programme. This initiative, according to the firm's website, "can prevent crimes targeted towards the normal citizen, tourists, students, elderly persons etc before they occur". It has been deployed in Kenya's capital Nairobi as well as Mauritius, with 4,000 "smart" surveillance video cameras set up at 2,000 sites across the Indian Ocean island nation. Some media outlets in Mauritius have condemned the system as "digital dictatorship" from "Big Brother Beijing". But Ghanaian Security Ministry Albert Kan-Dapaah, for one, says Huawei's video surveillance technology helps catch criminals. "When a crime has been committed, thanks to the cameras, we work magic," Kan-Dapaah says in a promotional video for the Chinese firm. Huawei Marine, the company's submarine cable arm, is helping to deploy a key 12,000-kilometre (7,450-mile) cable system connecting Africa to Asia. With Huawei so deeply embedded in Africa, the continent may find it difficult to avoid becoming a collateral victim of the US-China bust-up. "Africa is caught in the middle of a trade war that they should not have to take part in, because they have nothing to gain," said Nizard.

With US driving West to shun it, Huawei seeks to strengthen grip on Africa

China plans to establish a system to ensure "national security" in technology, state media reported Saturday amid an expanding trade war with the United States which has snared Chinese tech titan Huawei.

The powerful National Development and Reform Commission has been tasked with establishing a list system to "more effectively forestall and defuse national security risks," the Xinhua news agency said.

Xinhua did not elaborate or state whether the move was linked to the trade war but said, "detailed measures will be unveiled in the near future".

Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal and US President Donald Trump raised tariffs on $200 billion in Chinese goods, which Beijing retaliated to with its own tariff hike on billions worth US goods.

The trade war has stepped up in recent weeks with Washington's move to blacklist 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.

"Based on what I know, China is building a management mechanism to protect China's key technologies," Hu Xijin, the influential editor of the Chinese daily Global Times, said Saturday on Twitter.

"This is a major step to improve its system, and also a move to counter US crackdown. Once taking effect, some technology exports to the US will be subject to the control," Hu said.

China accuses Trump of wanting to thwart Huawei's development because the company is the world leader in next-generation 5G mobile technology and faces no US competition.

Following Washington's move, Beijing on Thursday said it would draw up its own blacklist of "unreliable" foreign companies, which could target US and international firms that have cut off supplies to Huawei.

China plans to establish a system to ensure "national security" in technology, state media reported Saturday amid an expanding trade war with the United States which has snared Chinese tech titan Huawei.

China plans to establish a system to ensure "national security" in technology, state media reported Saturday amid an expanding trade war with the United States which has snared Chinese tech titan Huawei. The powerful National Development and Reform Commission has been tasked with establishing a list system to "more effectively forestall and defuse national security risks," the Xinhua news agency said. Xinhua did not elaborate or state whether the move was linked to the trade war but said, "detailed measures will be unveiled in the near future". Washington and Beijing resumed their trade battle last month when trade talks in the US ended without a deal and US President Donald Trump raised tariffs on $200 billion in Chinese goods, which Beijing retaliated to with its own tariff hike on billions worth US goods. The trade war has stepped up in recent weeks with Washington's move to blacklist 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. "Based on what I know, China is building a management mechanism to protect China's key technologies," Hu Xijin, the influential editor of the Chinese daily Global Times, said Saturday on Twitter. "This is a major step to improve its system, and also a move to counter US crackdown. Once taking effect, some technology exports to the US will be subject to the control," Hu said. China accuses Trump of wanting to thwart Huawei's development because the company is the world leader in next-generation 5G mobile technology and faces no US competition. Following Washington's move, Beijing on Thursday said it would draw up its own blacklist of "unreliable" foreign companies, which could target US and international firms that have cut off supplies to Huawei.

China to set up system to safeguard technology security

China's Xi Jinping and Russia's Vladimir Putin hit back at US global economic dominance on Friday as they took the stage together at <a href="https://www.wionews.com/world/russia-and-china-show-united-front-at-economic-forum-225258">Russia's showcase business forum</a>.

With China embroiled in a trade war with Washington and Russia under Western sanctions, Xi and Putin <a href="https://www.wionews.com/world/putin-says-us-push-for-dominance-is-a-recipe-for-trade-and-real-wars-225280">lashed out at "inequalities" in the global economic system</a> and vowed to pursue closer ties between their countries.

Putin, speaking in front of political and business leaders at the annual Saint Petersburg International Economic Forum, accused Washington of seeking to "extend its jurisdiction to the whole world".

Denouncing the "rhetoric of trade wars and sanctions", Putin called for rethinking the role of the US dollar in global trade and slammed US pressure against Chinese tech giant Huawei.&nbsp;

"They are attempting not just to squeeze but to unceremoniously push (Huawei) out of the global market," Putin said.

Xi said steps needed to be taken to "overcome inequalities" in the global economic system, adding: "The aspirations of nations toward a better life cannot be stopped."

Pointing to Russia as a key partner, he said China was looking to build "beneficial cooperation on the basis of equality and mutual respect" with friendly countries.

"China is ready to share technological inventions with all partners, in particular, 5G technology," Xi said.&nbsp;

Xi arrived in Moscow on Wednesday for a three-day visit with Putin and described the Russian leader as his "best friend" during a cosy meeting at the Kremlin.

The trip comes five years after Moscow's annexation of Ukraine's Crimea peninsula led to a serious rift with the West and a move towards Russia's neighbour to the east.

China meanwhile is locked in a trade war with the United States that has seen Washington impose sweeping duties and move to blacklist companies like Huawei.&nbsp;

Moscow and Beijing's economic ties have grown in recent years, though they remain heavily weighted in favour of China, which dwarfs Russia in economic and demographic terms.

Dozens of deals signed

Xi's visit has seen the signing of dozens of commercial contracts in e-commerce, telecoms, gas and other areas.

Other deals have been signed at the forum, including one on Friday between Russian and Chinese shipping companies to work together to develop Arctic sea routes.&nbsp;

While this is the Chinese leader's first appearance at the economic forum, where he heads a 1,000-strong delegation, he and Putin have met regularly in recent years.&nbsp;

Ahead of Xi's visit, Kremlin advisor Yury Ushakov described China as "Russia's most important economic partner".&nbsp;

The partnership is yielding increasing trade, which grew by 25 per cent in 2018 to hit a record $108 billion, he said.

But despite political tensions and repeated rounds of sanctions over Moscow's actions in Ukraine, the European Union remains by far the biggest foreign investor in Russia -- well ahead of China and the US.

"China is taking time to ramp up investments in Russia," said Charles Robertson, chief economist at Renaissance Capital. "It wants to feel secure about the long term, it doesn't want to rush into it."

He predicted China would make big investments over the next three to five years, possibly even sooner, as Russia plays an important role in projects along Beijing's New Silk Road.&nbsp;

Worry over investor arrest

The first day of the forum on Thursday saw Putin make a pitch for increased foreign investment as Russia looks to revive an economy hit by Western sanctions over Ukraine and the drop in oil prices.&nbsp;

After emerging from recession in 2017, the Russian economy ticked up by only 0.5 per cent in the first quarter of this year.&nbsp;

Putin, whose approval ratings have dropped to record lows, has vowed to boost growth through a series of "national projects" -- ranging from healthcare to infrastructure -- that will cost Russia $388 billion.

But foreign investors, already wary of Russia' volatile business climate, were further spooked by the arrest on fraud charges in February of US businessman Michael Calvey, the founder of one of the oldest private equity firms focusing on Russia.&nbsp;

He denies the charges, saying the arrest was the result of a shareholder dispute.

In a statement through his lawyers on Friday, Calvey regretted that he had been unable to attend this year's forum.&nbsp;

"He expressed regret that it will apparently not be possible for him to attend SPIEF for reasons that are beyond his control," the statement said, with Calvey also thanking the business community "for its remarkable solidarity and support".&nbsp;

China's Xi Jinping and Russia's Vladimir Putin hit back at US global economic dominance on Friday as they took the stage together at Russia's showcase business forum.

China's Xi Jinping and Russia's Vladimir Putin hit back at US global economic dominance on Friday as they took the stage together at Russia's showcase business forum. With China embroiled in a trade war with Washington and Russia under Western sanctions, Xi and Putin lashed out at "inequalities" in the global economic system and vowed to pursue closer ties between their countries. Putin, speaking in front of political and business leaders at the annual Saint Petersburg International Economic Forum, accused Washington of seeking to "extend its jurisdiction to the whole world". Denouncing the "rhetoric of trade wars and sanctions", Putin called for rethinking the role of the US dollar in global trade and slammed US pressure against Chinese tech giant Huawei. "They are attempting not just to squeeze but to unceremoniously push (Huawei) out of the global market," Putin said. Xi said steps needed to be taken to "overcome inequalities" in the global economic system, adding: "The aspirations of nations toward a better life cannot be stopped." Pointing to Russia as a key partner, he said China was looking to build "beneficial cooperation on the basis of equality and mutual respect" with friendly countries. "China is ready to share technological inventions with all partners, in particular, 5G technology," Xi said. Xi arrived in Moscow on Wednesday for a three-day visit with Putin and described the Russian leader as his "best friend" during a cosy meeting at the Kremlin. The trip comes five years after Moscow's annexation of Ukraine's Crimea peninsula led to a serious rift with the West and a move towards Russia's neighbour to the east. China meanwhile is locked in a trade war with the United States that has seen Washington impose sweeping duties and move to blacklist companies like Huawei. Moscow and Beijing's economic ties have grown in recent years, though they remain heavily weighted in favour of China, which dwarfs Russia in economic and demographic terms. Dozens of deals signed Xi's visit has seen the signing of dozens of commercial contracts in e-commerce, telecoms, gas and other areas. Other deals have been signed at the forum, including one on Friday between Russian and Chinese shipping companies to work together to develop Arctic sea routes. While this is the Chinese leader's first appearance at the economic forum, where he heads a 1,000-strong delegation, he and Putin have met regularly in recent years. Ahead of Xi's visit, Kremlin advisor Yury Ushakov described China as "Russia's most important economic partner". The partnership is yielding increasing trade, which grew by 25 per cent in 2018 to hit a record $108 billion, he said. But despite political tensions and repeated rounds of sanctions over Moscow's actions in Ukraine, the European Union remains by far the biggest foreign investor in Russia -- well ahead of China and the US. "China is taking time to ramp up investments in Russia," said Charles Robertson, chief economist at Renaissance Capital. "It wants to feel secure about the long term, it doesn't want to rush into it." He predicted China would make big investments over the next three to five years, possibly even sooner, as Russia plays an important role in projects along Beijing's New Silk Road. Worry over investor arrest The first day of the forum on Thursday saw Putin make a pitch for increased foreign investment as Russia looks to revive an economy hit by Western sanctions over Ukraine and the drop in oil prices. After emerging from recession in 2017, the Russian economy ticked up by only 0.5 per cent in the first quarter of this year. Putin, whose approval ratings have dropped to record lows, has vowed to boost growth through a series of "national projects" -- ranging from healthcare to infrastructure -- that will cost Russia $388 billion. But foreign investors, already wary of Russia' volatile business climate, were further spooked by the arrest on fraud charges in February of US businessman Michael Calvey, the founder of one of the oldest private equity firms focusing on Russia. He denies the charges, saying the arrest was the result of a shareholder dispute. In a statement through his lawyers on Friday, Calvey regretted that he had been unable to attend this year's forum. "He expressed regret that it will apparently not be possible for him to attend SPIEF for reasons that are beyond his control," the statement said, with Calvey also thanking the business community "for its remarkable solidarity and support".

Vladimir Putin, Xi Jinping hit back at US dominance at Russia economic forum

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

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

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

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

<a href="https://www.wionews.com/world/china-ready-to-fight-us-on-trade-but-door-open-for-talks-defence-minister-223524">Ready to fight US on trade but door open for talks: Chinese defence minister</a>

China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday.

<a href="https://www.wionews.com/world/iran-will-not-be-bullied-into-us-talks-president-hassan-rouhani-223523">Will not be 'bullied' into US talks: Iran President Hassan Rouhani</a>

President Hassan Rouhani on Saturday suggested Iran may be willing to hold talks if the United States showed respect and followed international rules, but Tehran would not be "bullied" into negotiations.

<a href="https://www.wionews.com/sports/liverpool-beat-tottenham-to-win-champions-league-final-223520">Liverpool beat Tottenham to win Champions League final</a>

Mohamed Salah's early penalty and a late goal by Divock Origi steered Liverpool to a sixth Champions League title on Saturday as they beat Tottenham 2-0 in an all-English final in Madrid.

<a href="https://www.wionews.com/world/mexican-president-hints-at-migration-concessions-to-defuse-us-trade-spat-223536">Mexican president hints at migration concessions to defuse US trade spat</a>

Mexico's president on Saturday hinted his country could tighten migration controls to defuse US President Donald Trump's threat to impose tariffs on Mexican goods, and said he expected "good results" from talks planned in Washington next week.

<a href="https://www.wionews.com/india-news/cyclone-fani-about-48-of-people-still-without-power-in-odishas-puri-223529">Cyclone Fani: About 48% of people still without power in Odisha's Puri</a>

About 48 per cent of the electricity consumers in Puri district are yet to get back their power connection even though 28-days have passed after the extremely severe cyclone 'Fani' made landfall near Puri town on May 3, officials said Saturday.

&nbsp;

Ready to fight US on trade but door open for talks: Chinese defence minister China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday.

Ready to fight US on trade but door open for talks: Chinese defence minister China is ready to fight the US on trade but the door is still open for talks, the country's defence minister said Sunday. Will not be 'bullied' into US talks: Iran President Hassan Rouhani President Hassan Rouhani on Saturday suggested Iran may be willing to hold talks if the United States showed respect and followed international rules, but Tehran would not be "bullied" into negotiations. Liverpool beat Tottenham to win Champions League final Mohamed Salah's early penalty and a late goal by Divock Origi steered Liverpool to a sixth Champions League title on Saturday as they beat Tottenham 2-0 in an all-English final in Madrid. Mexican president hints at migration concessions to defuse US trade spat Mexico's president on Saturday hinted his country could tighten migration controls to defuse US President Donald Trump's threat to impose tariffs on Mexican goods, and said he expected "good results" from talks planned in Washington next week. Cyclone Fani: About 48% of people still without power in Odisha's Puri About 48 per cent of the electricity consumers in Puri district are yet to get back their power connection even though 28-days have passed after the extremely severe cyclone 'Fani' made landfall near Puri town on May 3, officials said Saturday.

News brief: Big stories of the day

By Ian Sheldon

Soybeans may not seem all that useful in a war. Nonetheless, they’ve become China’s most important weapon in its ever-worsening trade conflict with the US.

China, the world’s biggest buyer of the crop, has reportedly stopped purchasing any American soybeans in retaliation for the Trump administration raising tariffs on $250 billion of Chinese goods. This is very bad news for US farmers.

While China’s targeting of soybeans may have come as something of a surprise to most Americans, to a professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected.

Even before the conclusion of the 2016 presidential race, trade analysts were already weighing the possibility that China might impose an embargo on US&nbsp;soybean imports based on protectionist rhetoric from both candidates.

As a result, with the trade war in full swing, American soybean farmers are now among its biggest losers. 
 
Here are a few figures that show why.

Soybeans, by the numbers

Soybeans are a crucial part of the global food chain, particularly as a source of protein in the production of hogs and poultry.

The importance of China as a market for soybeans has been driven by an explosion in demand for meat as consumers switch from a diet dominated by rice to one where pork, poultry and beef play an important part. Chinese production of meat from those three animals surged 250 per cent&nbsp;from 1986 to 2012 and is projected to increase another 30 per cent by the end of the current decade. However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil.

In 2017, the US accounted for $21.4 billion worth of global soybean exports, the second largest after its main competitor Brazil, which exported $25.7 billion.

Back in 2017, that was good news for American farmers, when US&nbsp;exports made up about a third of Chinese purchases, or $13.9 billion. That made soybeans the United States’ second-most valuable export to China after airplanes.

But US exports to China have fallen dramatically since China slapped a 25 per cent tariff on Americans soybeans last April as part of its initial response to President Donald Trump’s trade war.

In the current farm marketing year, which began September&nbsp;1, US farmers have exported just 5.9 million metric tons of soybeans to China, compared with an average of 29 million at the same point during the previous three years – or about 80 per cent less.

That’s why the tariffs have tremendous potential to hurt farmers in my state of Ohio, where soybeans were the number one agricultural export in 2017 at $1.3 billion. China is the state’s largest export market.

And yet nationally, Ohio is just the seventh-largest exporter of soybeans, after Illinois, Iowa, Minnesota, Nebraska, Indiana and Missouri, all of which are suffering from the tariffs.

Not only do farmers stand to lose out by giving up market share to Brazilian farmers, but soybean prices at the port of New Orleans have fallen as well and are currently $9.35 a bushel compared with $10.82 per b\ushel a year ago. This has hurt incomes and created a double whammy for Midwest farms.

(Ian Sheldon is Chair in Agricultural Marketing, Trade and Policy, The Ohio State University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/how-soybeans-became-chinas-most-powerful-weapon-in-trumps-trade-war-118088">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

By Ian Sheldon Soybeans may not seem all that useful in a war. Nonetheless, they’ve become China’s most important weapon in its ever-worsening trade conflict with the US.

By Ian Sheldon Soybeans may not seem all that useful in a war. Nonetheless, they’ve become China’s most important weapon in its ever-worsening trade conflict with the US. China, the world’s biggest buyer of the crop, has reportedly stopped purchasing any American soybeans in retaliation for the Trump administration raising tariffs on $250 billion of Chinese goods. This is very bad news for US farmers. While China’s targeting of soybeans may have come as something of a surprise to most Americans, to a professor of agricultural economics who studies international commodity markets for a living, this was not at all unexpected. Even before the conclusion of the 2016 presidential race, trade analysts were already weighing the possibility that China might impose an embargo on US soybean imports based on protectionist rhetoric from both candidates. As a result, with the trade war in full swing, American soybean farmers are now among its biggest losers. Here are a few figures that show why. Soybeans, by the numbers Soybeans are a crucial part of the global food chain, particularly as a source of protein in the production of hogs and poultry. The importance of China as a market for soybeans has been driven by an explosion in demand for meat as consumers switch from a diet dominated by rice to one where pork, poultry and beef play an important part. Chinese production of meat from those three animals surged 250 per cent from 1986 to 2012 and is projected to increase another 30 per cent by the end of the current decade. However, China is unable to produce enough animal feed itself, hence the need to import soybeans from the United States and Brazil. In 2017, the US accounted for $21.4 billion worth of global soybean exports, the second largest after its main competitor Brazil, which exported $25.7 billion. Back in 2017, that was good news for American farmers, when US exports made up about a third of Chinese purchases, or $13.9 billion. That made soybeans the United States’ second-most valuable export to China after airplanes. But US exports to China have fallen dramatically since China slapped a 25 per cent tariff on Americans soybeans last April as part of its initial response to President Donald Trump’s trade war. In the current farm marketing year, which began September 1, US farmers have exported just 5.9 million metric tons of soybeans to China, compared with an average of 29 million at the same point during the previous three years – or about 80 per cent less. That’s why the tariffs have tremendous potential to hurt farmers in my state of Ohio, where soybeans were the number one agricultural export in 2017 at $1.3 billion. China is the state’s largest export market. And yet nationally, Ohio is just the seventh-largest exporter of soybeans, after Illinois, Iowa, Minnesota, Nebraska, Indiana and Missouri, all of which are suffering from the tariffs. Not only do farmers stand to lose out by giving up market share to Brazilian farmers, but soybean prices at the port of New Orleans have fallen as well and are currently $9.35 a bushel compared with $10.82 per b\ushel a year ago. This has hurt incomes and created a double whammy for Midwest farms. (Ian Sheldon is Chair in Agricultural Marketing, Trade and Policy, The Ohio State University) (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.)

How soybeans became China’s most powerful weapon in Trump’s trade war

China's Communist Party newspaper warned the United States on Wednesday that the country was ready to use rare earths to strike back in their <a href="https://www.wionews.com/world/china-says-any-us-trade-talks-must-be-based-on-mutual-respect-221968">bitter trade war</a>, saying in an extremely strongly worded commentary "don't say we didn't warn you".

President Xi Jinping's visit to a rare earths plant last week fuelled speculation that <a href="http://wionews.com/world/us-treasury-again-says-china-is-not-manipulating-currency-222375">China</a> would use its dominant position as a supplier of rare earths for leverage in the trade war.

Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment.

While China has so far not explicitly said it will restrict rare earths exports to the United States, Chinese media has strongly implied this will happen, including remarks from the editor of influential paper the Global Times on Twitter late on Tuesday.

In a commentary headline "United States, don't underestimate China's ability to strike back", the ruling Communist Party's official People's Daily noted the "uncomfortable" dependence on rare earths from China of the United States.

Watch: China's utmost sincerity in trade talks a sign of strength

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"Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery," it said.

"Undoubtedly, the US&nbsp;side wants to use the products made by China's exported rare earths to counter and suppress China's development. The Chinese people will never accept this!" the paper added.

The industrial chain between China and the United States is highly integrated and highly complementary, and there are no winners in a trade war, it said.

"We advise the US&nbsp;side not to underestimate the Chinese side's ability to safeguard its development rights and interests. Don't say we didn't warn you!"

The expression "don't say we didn't warn you" is generally only used by official Chinese media to warn rivals over major areas of disagreement, for example during a border dispute with India in 2017 and in 1978 before China invaded Vietnam.

China accounted for 80% of rare earth imports between 2014 and 2017 by the United States, which has excluded them from recent tariffs along with some other critical Chinese minerals.

Beijing, however, has raised tariffs on imports of US&nbsp;rare earth metal ores from 10% to 25% from June 1, making it less economical to process the material in China.

China's Communist Party newspaper warned the United States on Wednesday that the country was ready to use rare earths to strike back in their bitter trade war, saying in an extremely strongly worded commentary "don't say we didn't warn you".

China's Communist Party newspaper warned the United States on Wednesday that the country was ready to use rare earths to strike back in their bitter trade war, saying in an extremely strongly worded commentary "don't say we didn't warn you". President Xi Jinping's visit to a rare earths plant last week fuelled speculation that China would use its dominant position as a supplier of rare earths for leverage in the trade war. Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment. While China has so far not explicitly said it will restrict rare earths exports to the United States, Chinese media has strongly implied this will happen, including remarks from the editor of influential paper the Global Times on Twitter late on Tuesday. In a commentary headline "United States, don't underestimate China's ability to strike back", the ruling Communist Party's official People's Daily noted the "uncomfortable" dependence on rare earths from China of the United States. Watch: China's utmost sincerity in trade talks a sign of strength "Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery," it said. "Undoubtedly, the US side wants to use the products made by China's exported rare earths to counter and suppress China's development. The Chinese people will never accept this!" the paper added. The industrial chain between China and the United States is highly integrated and highly complementary, and there are no winners in a trade war, it said. "We advise the US side not to underestimate the Chinese side's ability to safeguard its development rights and interests. Don't say we didn't warn you!" The expression "don't say we didn't warn you" is generally only used by official Chinese media to warn rivals over major areas of disagreement, for example during a border dispute with India in 2017 and in 1978 before China invaded Vietnam. China accounted for 80% of rare earth imports between 2014 and 2017 by the United States, which has excluded them from recent tariffs along with some other critical Chinese minerals. Beijing, however, has raised tariffs on imports of US rare earth metal ores from 10% to 25% from June 1, making it less economical to process the material in China.

'Don't say we didn't warn you!' China ready to hit back at US with 'rare earths'

Chinese telecoms equipment maker<a href="https://www.wionews.com/world/china-slams-us-lies-about-huaweis-government-ties-221382"> Huawei</a> is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without a detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.

Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.&nbsp;

Huawei said the four packages only contained documents and "no technology," which Reuters was unable to independently confirm.

Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the US government's move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively <a href="https://www.wionews.com/world/dont-be-too-optimistic-huawei-employees-fret-at-us-ban-221684">banning US firms from doing business</a> with them on security grounds.

Watch: Huawei says it's a 'victim of bullying by the US administration'

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"The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence," Joe Kelly, a spokesman for Huawei, told Reuters.

"We will now have to review our logistics and document delivery support requirements as a direct result of these incidents," the spokesman said.

Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were "misrouted in error" and that FedEx was not requested to divert them by any other party.

"This is an isolated issue limited to a very small number of packages," said FedEx, referring to the four parcels affected. "We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession."

The US Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called "Entity List," preventing it buying certain items from US companies without US government approval.

Formal complaint

The United States believes Huawei, the world's largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in an escalating trade battle between the world's two biggest economies.

The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.

The two packages originating from Hanoi on May 17, destined for Huawei's Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for "delivery exception," according to other images Huawei showed Reuters.

According to FedEx's website, the status "exception" means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: "Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender)," the representative wrote in broken English, according to an email Huawei showed to Reuters.

Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that.

Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx's tracking record.

The company said it has lodged a formal complaint with China's postal regulator, which it said is investigating the incident. China's State Postal Bureau did not return a request for comment.

Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without a detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without a detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others. Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records. Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information. Huawei said the four packages only contained documents and "no technology," which Reuters was unable to independently confirm. Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the US government's move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively banning US firms from doing business with them on security grounds. Watch: Huawei says it's a 'victim of bullying by the US administration' × "The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence," Joe Kelly, a spokesman for Huawei, told Reuters. "We will now have to review our logistics and document delivery support requirements as a direct result of these incidents," the spokesman said. Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei. FedEx spokeswoman Maury Donahue told Reuters the packages were "misrouted in error" and that FedEx was not requested to divert them by any other party. "This is an isolated issue limited to a very small number of packages," said FedEx, referring to the four parcels affected. "We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession." The US Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called "Entity List," preventing it buying certain items from US companies without US government approval. Formal complaint The United States believes Huawei, the world's largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government. Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. The issue has become a flashpoint in an escalating trade battle between the world's two biggest economies. The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei. The two packages originating from Hanoi on May 17, destined for Huawei's Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for "delivery exception," according to other images Huawei showed Reuters. According to FedEx's website, the status "exception" means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case. According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: "Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender)," the representative wrote in broken English, according to an email Huawei showed to Reuters. Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that. Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx's tracking record. The company said it has lodged a formal complaint with China's postal regulator, which it said is investigating the incident. China's State Postal Bureau did not return a request for comment.

Huawei reviewing FedEx relationship, says packages 'diverted'

North Korea slammed US National Security Advisor John Bolton on Monday, calling him a "human defect" that had to be banished, just as <a href="https://www.wionews.com/world/great-respect-between-us-and-north-korea-donald-trump-221859">President Donald Trump offered a positive outlook on relations with Pyongyang</a>.

Talks between Washington and Pyongyang have been deadlocked since the collapse of a summit between Trump and North Korean leader Kim Jong-un in Hanoi in February when they failed to agree a deal on denuclearisation.

The North has since sought to raise the pressure and carried out two short-range missile tests earlier this month.

Bolton said Saturday there was "no doubt" they violated UN Security Council resolutions against ballistic missile launches, but insisted Washington was still ready to resume talks.

A spokesman for the North's foreign ministry dismissed Bolton's remarks, saying Pyongyang had never accepted the <a href="https://www.wionews.com/world/north-korean-missile-test-violated-un-resolution-john-bolton-221446">UN bans on ballistic technology</a>, which denied its "rights as a sovereign nation".

"Bolton said our regular military drills violated UNSC resolutions, which is beyond stupid," he said in a statement carried by the official Korean Central News Agency (KCNA).

Without referring to the weapons as missiles, the statement said the launches did not target or threaten any neighbouring countries.

"Banning launches using ballistic technology is equal to telling us to give up our right to self-defence," he added.

The spokesman went on to denounce Bolton, calling him a "war maniac" and accusing him of "whispering war" into Trump's ears, referring to Washington's approach towards the Middle East and South America.

Calling the hawkish official "structurally faulty", he added that Bolton was working to "destroy peace and security".

"Such human defect must go away as soon as possible," the spokesman said.

The statement came just minutes after Trump -- on a visit to Japan -- said there was "great respect" between the United States and North Korea and predicted "lots of good things".

Trump expressed confidence in his relationship with Kim at the weekend and downplayed Pyongyang's recent missile launches, calling them "small weapons" that "disturbed some of my people, and others, but not me".

Last week, KCNA launched a diatribe against Democratic former US vice president Joe Biden, calling him an "imbecile" and a "fool of low IQ", prompting White House spokeswoman Sarah Sanders to say that Trump agreed with the assessment.

Watch: North Korea demands immediate return of Cargo Ship seized by US

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&nbsp;

North Korea slammed US National Security Advisor John Bolton on Monday, calling him a "human defect" that had to be banished, just as President Donald Trump offered a positive outlook on relations with Pyongyang.

North Korea slammed US National Security Advisor John Bolton on Monday, calling him a "human defect" that had to be banished, just as President Donald Trump offered a positive outlook on relations with Pyongyang. Talks between Washington and Pyongyang have been deadlocked since the collapse of a summit between Trump and North Korean leader Kim Jong-un in Hanoi in February when they failed to agree a deal on denuclearisation. The North has since sought to raise the pressure and carried out two short-range missile tests earlier this month. Bolton said Saturday there was "no doubt" they violated UN Security Council resolutions against ballistic missile launches, but insisted Washington was still ready to resume talks. A spokesman for the North's foreign ministry dismissed Bolton's remarks, saying Pyongyang had never accepted the UN bans on ballistic technology, which denied its "rights as a sovereign nation". "Bolton said our regular military drills violated UNSC resolutions, which is beyond stupid," he said in a statement carried by the official Korean Central News Agency (KCNA). Without referring to the weapons as missiles, the statement said the launches did not target or threaten any neighbouring countries. "Banning launches using ballistic technology is equal to telling us to give up our right to self-defence," he added. The spokesman went on to denounce Bolton, calling him a "war maniac" and accusing him of "whispering war" into Trump's ears, referring to Washington's approach towards the Middle East and South America. Calling the hawkish official "structurally faulty", he added that Bolton was working to "destroy peace and security". "Such human defect must go away as soon as possible," the spokesman said. The statement came just minutes after Trump -- on a visit to Japan -- said there was "great respect" between the United States and North Korea and predicted "lots of good things". Trump expressed confidence in his relationship with Kim at the weekend and downplayed Pyongyang's recent missile launches, calling them "small weapons" that "disturbed some of my people, and others, but not me". Last week, KCNA launched a diatribe against Democratic former US vice president Joe Biden, calling him an "imbecile" and a "fool of low IQ", prompting White House spokeswoman Sarah Sanders to say that Trump agreed with the assessment. Watch: North Korea demands immediate return of Cargo Ship seized by US ×

North Korea calls US National Security Advisor John Bolton 'human defect'

China should hold talks with Tibet's spiritual leader, the Dalai Lama, US Ambassador to China Terry Branstad told Chinese officials during a trip to the Himalayan region where he criticised Beijing for interfering in religious freedom.

<a href="https://www.wionews.com/world/us-ambassador-to-china-visiting-tibet-this-week-220100">Branstad visited Tibet last week</a>, the first such trip by a US ambassador since 2015, amid escalating trade and diplomatic tension between the two countries.

His visit followed the passing of a US 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.

Branstad met Chinese government officials and Tibetan religious and cultural figures, and "raised our long-standing concerns about lack of consistent access" to Tibet, the US Embassy in Beijing said in an emailed statement on Saturday.

"He encouraged the Chinese government to engage in substantive dialogue with the Dalai Lama or his representatives, without preconditions, to seek a settlement that resolves differences," an embassy spokeswoman said.

"He also expressed concerns regarding the Chinese government's interference in Tibetan Buddhists' freedom to organise and practise their religion," she said.

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.

The Dalai Lama fled to India in early 1959 after a failed uprising against Chinese rule, and Beijing still brands him a dangerous separatist. China says its leaders have the right to approve his successor, as a legacy from China's emperors.

But the 83-year-old Nobel peace laureate monk, who lives in exile in the northern Indian hill town of Dharamshala, has said that his incarnation could be found in India after he dies, and that any other successor named by China would not be respected.

Tibetan tradition holds that the soul of a senior Buddhist monk is reincarnated in the body of a child on his death.

Tibet's Communist Party secretary, Wu Yingjie, told Branstad how China had made "huge achievements" in "guaranteeing according to law" religious freedom and traditional culture in Tibet, the official Tibet Daily newspaper said late on Saturday.

Wu added that he "sincerely welcomed more American friends to visit" the region.

China's Foreign Ministry said last week that China hoped the ambassador would not take any "prejudices" with him on the trip.

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.

China should hold talks with Tibet's spiritual leader, the Dalai Lama, US Ambassador to China Terry Branstad told Chinese officials during a trip to the Himalayan region where he criticised Beijing for interfering in religious freedom.

China should hold talks with Tibet's spiritual leader, the Dalai Lama, US Ambassador to China Terry Branstad told Chinese officials during a trip to the Himalayan region where he criticised Beijing for interfering in religious freedom. Branstad visited Tibet last week, the first such trip by a US ambassador since 2015, amid escalating trade and diplomatic tension between the two countries. His visit followed the passing of a US 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. Branstad met Chinese government officials and Tibetan religious and cultural figures, and "raised our long-standing concerns about lack of consistent access" to Tibet, the US Embassy in Beijing said in an emailed statement on Saturday. "He encouraged the Chinese government to engage in substantive dialogue with the Dalai Lama or his representatives, without preconditions, to seek a settlement that resolves differences," an embassy spokeswoman said. "He also expressed concerns regarding the Chinese government's interference in Tibetan Buddhists' freedom to organise and practise their religion," she said. 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. The Dalai Lama fled to India in early 1959 after a failed uprising against Chinese rule, and Beijing still brands him a dangerous separatist. China says its leaders have the right to approve his successor, as a legacy from China's emperors. But the 83-year-old Nobel peace laureate monk, who lives in exile in the northern Indian hill town of Dharamshala, has said that his incarnation could be found in India after he dies, and that any other successor named by China would not be respected. Tibetan tradition holds that the soul of a senior Buddhist monk is reincarnated in the body of a child on his death. Tibet's Communist Party secretary, Wu Yingjie, told Branstad how China had made "huge achievements" in "guaranteeing according to law" religious freedom and traditional culture in Tibet, the official Tibet Daily newspaper said late on Saturday. Wu added that he "sincerely welcomed more American friends to visit" the region. China's Foreign Ministry said last week that China hoped the ambassador would not take any "prejudices" with him on the trip. 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.

China should hold talks with Dalai Lama: US ambassador Terry Branstad

While Huawei's founder brushes aside a US ban against his company, the telecom giant's employees have been less sanguine, confessing fears for their future in online chat rooms.

Huawei CEO Ren Zhengfei declared this week the company has a hoard of microchips and the ability to make its own in order to withstand a potentially crippling US ban on using American components and software in its products.

"If you really want to know what's going on with us, you can visit our Xinsheng Community," Ren told Chinese media, alluding to Huawei's internal forum partially open to viewers outside the company.

But a peek into Xinsheng shows his words have not reassured everyone within the Shenzhen-based company.

"During difficult times, what should we do as individuals?" posted an employee under the handle Xiao Feng on Thursday.&nbsp;

"At home reduce your debts and maintain enough cash," Xiao Feng wrote.

"Make a plan for your financial assets and don't be overly optimistic about your remuneration and income."

This week Google, whose Android operating system powers most of the world's smartphones, said it would cut ties with Huawei as a result of the ban.

Another critical partner, ARM Holdings -- a British designer of semiconductors owned by Japanese group Softbank -- said it was complying with the US restrictions.

"On its own Huawei can't resolve this problem, we need to seek support from government policy," one unnamed employee wrote last week, in a post that received dozens of likes and replies.

The employee outlined a plan for China to block off its smartphone market from all American components much in the same way Beijing fostered its internet tech giants behind a "Great Firewall" that keeps out Google, Facebook, Twitter and dozens of other foreign companies.

"Our domestic market is big enough, we can use this opportunity to build up domestic suppliers and our ecosystem," the employee wrote.

'Advance with our company'

For his part, Ren advocated the opposite response in his interview with Chinese media.

"We should not promote populism; populism is detrimental to the country," he said, noting that his family uses Apple products.

Other employees strategized ways to circumvent the US ban.

One advocated turning to Alibaba's e-commerce platform Taobao to buy the needed components. Another dangled the prospect of setting up dozens of new companies to make purchases from US suppliers.

Many denounced the US and proposed China ban McDonald's, Coca-Cola and all-American movies and TV shows.

"First time posting under my real name: we must do our jobs well, advance and retreat with our company," said an employee named Xu Jin.

The tech ban caps months of US effort to isolate Huawei, whose equipment Washington fears could be used as a Trojan horse by Chinese intelligence services.

Still, last week Trump indicated he was willing to include a fix for Huawei in a trade deal that the two economic giants have struggled to seal and US officials issued a 90-day reprieve on the ban.&nbsp;

In Xinsheng, an employee with the handle Youxin lamented: "I want to advance and retreat alongside the company, but then my boss told me to pack up and go", followed by two sad-face emoticons.

While Huawei's founder brushes aside a US ban against his company, the telecom giant's employees have been less sanguine, confessing fears for their future in online chat rooms.

While Huawei's founder brushes aside a US ban against his company, the telecom giant's employees have been less sanguine, confessing fears for their future in online chat rooms. Huawei CEO Ren Zhengfei declared this week the company has a hoard of microchips and the ability to make its own in order to withstand a potentially crippling US ban on using American components and software in its products. "If you really want to know what's going on with us, you can visit our Xinsheng Community," Ren told Chinese media, alluding to Huawei's internal forum partially open to viewers outside the company. But a peek into Xinsheng shows his words have not reassured everyone within the Shenzhen-based company. "During difficult times, what should we do as individuals?" posted an employee under the handle Xiao Feng on Thursday. "At home reduce your debts and maintain enough cash," Xiao Feng wrote. "Make a plan for your financial assets and don't be overly optimistic about your remuneration and income." This week Google, whose Android operating system powers most of the world's smartphones, said it would cut ties with Huawei as a result of the ban. Another critical partner, ARM Holdings -- a British designer of semiconductors owned by Japanese group Softbank -- said it was complying with the US restrictions. "On its own Huawei can't resolve this problem, we need to seek support from government policy," one unnamed employee wrote last week, in a post that received dozens of likes and replies. The employee outlined a plan for China to block off its smartphone market from all American components much in the same way Beijing fostered its internet tech giants behind a "Great Firewall" that keeps out Google, Facebook, Twitter and dozens of other foreign companies. "Our domestic market is big enough, we can use this opportunity to build up domestic suppliers and our ecosystem," the employee wrote. 'Advance with our company' For his part, Ren advocated the opposite response in his interview with Chinese media. "We should not promote populism; populism is detrimental to the country," he said, noting that his family uses Apple products. Other employees strategized ways to circumvent the US ban. One advocated turning to Alibaba's e-commerce platform Taobao to buy the needed components. Another dangled the prospect of setting up dozens of new companies to make purchases from US suppliers. Many denounced the US and proposed China ban McDonald's, Coca-Cola and all-American movies and TV shows. "First time posting under my real name: we must do our jobs well, advance and retreat with our company," said an employee named Xu Jin. The tech ban caps months of US effort to isolate Huawei, whose equipment Washington fears could be used as a Trojan horse by Chinese intelligence services. Still, last week Trump indicated he was willing to include a fix for Huawei in a trade deal that the two economic giants have struggled to seal and US officials issued a 90-day reprieve on the ban. In Xinsheng, an employee with the handle Youxin lamented: "I want to advance and retreat alongside the company, but then my boss told me to pack up and go", followed by two sad-face emoticons.

'Don't be too optimistic': Huawei employees fret at US ban

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

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

The neighbourhood will be a priority and the focus will be on India's ties with the United States and China in the backdrop of Beijing-Washington standoff over trade issue, former envoys said after the <a href="https://www.wionews.com/india-general-elections-2019/lok-sabha-polls-2019-narendra-modi-likely-to-take-oath-as-prime-minister-on-may-30-221221">historic victory of Narendra Modi</a> led-Bharatiya Janata Party (BJP) in country's 17 Lok Sabha elections. Other than this, ties with Iran on the energy front and Russia which is a long-standing ally of India will also be in focus.&nbsp;

Our principal diplomatic correspondent Sidhant Sibal spoke to 11 former Indian envoys on focus areas for the new government and the challenges ahead.

"The new government will have its hands full. And one of the many priorities would be the immediate neighbourhood- Sri Lanka Afghanistan and Pakistan should be higher on the list- need to work with Sri Lanka, work on Pakistan and with and for Afghanistan &nbsp;as it stands on a critical crossroad.US Taliban talks seem to have hit the wall of Taliban's intransigence andIR inflexibility. India has to be mindful of the danger of Afghanistan being pushed back to dark ages and thus needs a proactive role with all stakeholders to ensure gains of last 18 years are not sacrificed," said Amar Sinha, former Ambassador of India to Afghanistan and Tajikistan.

Ashok Sajjanhar, former Ambassador of India to Kazakhstan, Sweden and Latvia said, "Relations with the<a href="https://www.wionews.com/world/imf-warns-us-china-trade-war-will-jeopardize-2019-global-growth-221117"> US and China</a> will be the most challenging. India will have to deftly and skillfully deal with China's ascendancy and assertiveness through both cooperation and competition to safeguard and promote its strategic and economic interests. With Washington, India will need to ensure that America's growing capriciousness and unpredictability on trade matters does not adversely impact on the rapidly advancing bilateral strategic partnership. Energy security and prices, Pakistan, Afghanistan and West Asia are other challenges looming on the horizon which will need to be attended to urgently."

Kanwal Sibal, former Foreign Secretary said, "Standing up to the US &nbsp;on issues where it’s policies hurt our interests while maintaining the forward momentum of our ties. Keeping China engaged while boosting the Indo-Pacific concept. Preserving close ties with Russia as we become closer to the US and participate in hedging policies towards China."

Sharat Sabharwal, former High Commissioner to Pakistan, Ambassador to Uzbekistan, said, "Managing the relationship with a fast-rising and increasingly assertive China will remain the major foreign policy challenge of the new government. But an immediate crisis that the government may have to deal with is the mounting tension between the US and Iran, with the potential of a military conflict and its impact on India's energy supplies from West Asia and the large Indian diaspora there."

Anil Trigunayat, former Ambassador to Jordan Libya and Malta, said, "The biggest challenge in my view will be in managing the US especially with regard to our engagement with Russia and Iran as blatant unilateralism has the potential to undermine our strategic autonomy. &nbsp;If the US-Iran confrontation crosses the threshold it will have the worst repercussions for our energy security and diaspora welfare in the Gulf region."

Vijay K Nambiar, India’s former Permanent Representative to United Nations and former envoy to Pak, China, Afghanistan, said, "We are increasingly presenting an image to the outside world of an angry "underdog" power wanting to disrupt the status quo. Our biggest challenge, in the coming period, therefore, will be to preserve our traditional soft power image of an open, inclusive and introspective society that, while confident and unselfconscious about its own particularities, is willing to adopt a humane and harmonious attitude towards the outside world and to learn from others."

Deepa Wadhwa, a former envoy to Qatar, Japan, Sweden, Latvia and the Marshall Islands, said, "Sidhant, I believe the first issue the new government will have to confront, will be the fallout of the US-Iran standoff and its effect on our interests in the Middle East. The other priority will be our relationship with the US and in particular, deteriorating trade ties."

"There are perennials of our relations with China and the new government will soon have an opportunity to convey our sensitivities and concerns while batting for improved relations at the second informal summit to be held between the leaders of the two countries in the latter half of the year," Wadhwa added.

Anil Wadhwa, former Indian envoy to Italy, Poland, Oman and Thailand said, "The biggest challenge facing the new government will be the management of its complex web of relationships with the United States, Russia and China, and adapting and keeping pace with the new technological revolution which is changing the way countries operate and move forward in their domestic and external policies."

Bhaswati Mukherjee, a former Indian envoy to the Netherlands, said, "Managing the contradictions in the US-China relationship and its impact on India if a full-fledged trade war breaks out. Balancing out the relationship with Russia in the context of our strategic partnership with the US. Preparing for a meltdown in Afghanistan with the withdrawal of US troops."

Rajiv Dogra, former Indian envoy to Italy and consul general to Karachi "The biggest foreign policy challenge of the new government will be it, itself. If it flips -flops and changes direction whimsically it hands over the policy advantage to others. All said and done the coming months will test the new government repeatedly on the foreign policy front."

Neelam Deo, former Indian Ambassador to Denmark and Ivory Coast said, "With Prime Minister Modi’s return to the office, India will have continuity in foreign policy direction. We can expect an enhancement in the initiatives started in PM Modi’s first term. For example. a strong outreach to members of the Quad – Japan, USA and Australia in defence, especially on maritime matters. There will be an increased focus on building infrastructure, for example in partnership with Japan in Sri Lanka and Bangladesh as well as Africa under the Asia Africa Growth Corridor. In its second term, the Modi government will move rapidly to put more content into its relationship with the West, especially the US, while the Gulf countries will be the focus of energy diplomacy."

The neighbourhood will be a priority and the focus will be on India's ties with the United States and China in the backdrop of Beijing-Washington standoff over trade issue, former envoys said after the historic victory of Narendra Modi led-Bharatiya Janata Party (BJP) in country's 17 Lok Sabha elections.

The neighbourhood will be a priority and the focus will be on India's ties with the United States and China in the backdrop of Beijing-Washington standoff over trade issue, former envoys said after the historic victory of Narendra Modi led-Bharatiya Janata Party (BJP) in country's 17 Lok Sabha elections. Other than this, ties with Iran on the energy front and Russia which is a long-standing ally of India will also be in focus. Our principal diplomatic correspondent Sidhant Sibal spoke to 11 former Indian envoys on focus areas for the new government and the challenges ahead. "The new government will have its hands full. And one of the many priorities would be the immediate neighbourhood- Sri Lanka Afghanistan and Pakistan should be higher on the list- need to work with Sri Lanka, work on Pakistan and with and for Afghanistan as it stands on a critical crossroad.US Taliban talks seem to have hit the wall of Taliban's intransigence andIR inflexibility. India has to be mindful of the danger of Afghanistan being pushed back to dark ages and thus needs a proactive role with all stakeholders to ensure gains of last 18 years are not sacrificed," said Amar Sinha, former Ambassador of India to Afghanistan and Tajikistan. Ashok Sajjanhar, former Ambassador of India to Kazakhstan, Sweden and Latvia said, "Relations with the US and China will be the most challenging. India will have to deftly and skillfully deal with China's ascendancy and assertiveness through both cooperation and competition to safeguard and promote its strategic and economic interests. With Washington, India will need to ensure that America's growing capriciousness and unpredictability on trade matters does not adversely impact on the rapidly advancing bilateral strategic partnership. Energy security and prices, Pakistan, Afghanistan and West Asia are other challenges looming on the horizon which will need to be attended to urgently." Kanwal Sibal, former Foreign Secretary said, "Standing up to the US on issues where it’s policies hurt our interests while maintaining the forward momentum of our ties. Keeping China engaged while boosting the Indo-Pacific concept. Preserving close ties with Russia as we become closer to the US and participate in hedging policies towards China." Sharat Sabharwal, former High Commissioner to Pakistan, Ambassador to Uzbekistan, said, "Managing the relationship with a fast-rising and increasingly assertive China will remain the major foreign policy challenge of the new government. But an immediate crisis that the government may have to deal with is the mounting tension between the US and Iran, with the potential of a military conflict and its impact on India's energy supplies from West Asia and the large Indian diaspora there." Anil Trigunayat, former Ambassador to Jordan Libya and Malta, said, "The biggest challenge in my view will be in managing the US especially with regard to our engagement with Russia and Iran as blatant unilateralism has the potential to undermine our strategic autonomy. If the US-Iran confrontation crosses the threshold it will have the worst repercussions for our energy security and diaspora welfare in the Gulf region." Vijay K Nambiar, India’s former Permanent Representative to United Nations and former envoy to Pak, China, Afghanistan, said, "We are increasingly presenting an image to the outside world of an angry "underdog" power wanting to disrupt the status quo. Our biggest challenge, in the coming period, therefore, will be to preserve our traditional soft power image of an open, inclusive and introspective society that, while confident and unselfconscious about its own particularities, is willing to adopt a humane and harmonious attitude towards the outside world and to learn from others." Deepa Wadhwa, a former envoy to Qatar, Japan, Sweden, Latvia and the Marshall Islands, said, "Sidhant, I believe the first issue the new government will have to confront, will be the fallout of the US-Iran standoff and its effect on our interests in the Middle East. The other priority will be our relationship with the US and in particular, deteriorating trade ties." "There are perennials of our relations with China and the new government will soon have an opportunity to convey our sensitivities and concerns while batting for improved relations at the second informal summit to be held between the leaders of the two countries in the latter half of the year," Wadhwa added. Anil Wadhwa, former Indian envoy to Italy, Poland, Oman and Thailand said, "The biggest challenge facing the new government will be the management of its complex web of relationships with the United States, Russia and China, and adapting and keeping pace with the new technological revolution which is changing the way countries operate and move forward in their domestic and external policies." Bhaswati Mukherjee, a former Indian envoy to the Netherlands, said, "Managing the contradictions in the US-China relationship and its impact on India if a full-fledged trade war breaks out. Balancing out the relationship with Russia in the context of our strategic partnership with the US. Preparing for a meltdown in Afghanistan with the withdrawal of US troops." Rajiv Dogra, former Indian envoy to Italy and consul general to Karachi "The biggest foreign policy challenge of the new government will be it, itself. If it flips -flops and changes direction whimsically it hands over the policy advantage to others. All said and done the coming months will test the new government repeatedly on the foreign policy front." Neelam Deo, former Indian Ambassador to Denmark and Ivory Coast said, "With Prime Minister Modi’s return to the office, India will have continuity in foreign policy direction. We can expect an enhancement in the initiatives started in PM Modi’s first term. For example. a strong outreach to members of the Quad – Japan, USA and Australia in defence, especially on maritime matters. There will be an increased focus on building infrastructure, for example in partnership with Japan in Sri Lanka and Bangladesh as well as Africa under the Asia Africa Growth Corridor. In its second term, the Modi government will move rapidly to put more content into its relationship with the West, especially the US, while the Gulf countries will be the focus of energy diplomacy."

Lok Sabha election 2019: US, China and neighbouring countries to be focus areas of new government, say former envoys

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

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

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

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

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

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

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

Fears rise China could weaponise rare earths in US tech war

US-China Stalemate Over Trade Looks Set To Continue.

Gravitas: US-China Trade War: No End In Sight

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

Chinese telecoms giant Huawei is ready to deal with <a href="https://www.wionews.com/world/chinas-huawei-restricted-from-using-us-suppliers-219260">Washington's crackdown</a> and will reduce its reliance on US components, its founder told Japanese media.

President Donald Trump <a href="https://www.wionews.com/business-economy/huawei-founder-says-growth-may-slow-but-only-slightly-after-us-restrictions-219759">effectively barred Huawei from the US market</a> on Wednesday and added it to a list which would restrict US sales to the firm amid an escalating trade war with Beijing.

"We have already been preparing for this," Huawei founder and CEO Ren Zhengfei told a group of Japanese journalists Saturday in his first interview since Trump's move.

Ren said Huawei would continue to develop its own components to reduce its dependence on outside suppliers.

Huawei is a rapidly expanding leader in 5G technology but remains dependent on foreign suppliers.

It buys about $67 billion worth of components each year, including about $11 billion from US suppliers, according to The Nikkei business daily.

The usually elusive Ren, 74, has come out of the shadows in recent months in the face of increasing pressure on his company.

Ren's army background and Huawei's opaque culture have fuelled suspicions in some countries that the firm has links with the Chinese military and intelligence services.

Huawei is also the target of an intense campaign by Washington, which has been trying to persuade allies not to allow China a role in building next-generation 5G mobile networks.&nbsp;

US government agencies are already banned from buying equipment from Huawei.

"We have not done anything which violates the law," Ren said, adding the US measures would have a limited impact.

"It is expected that Huawei's growth may slow, but only slightly," he said, according The Nikkei.

A former army technician, Ren founded Huawei in 1987 with only $5,000, according to company lore.&nbsp;

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Huawei now claims to have nearly 190,000 employees, operates in 170 countries, and reported revenue of more than $100 billion in 2018.

Ren said his company would not yield to pressure from Washington.

"We will not change our management at the request of the US or accept monitoring, as &nbsp;ZTE has done," he said, as quoted by The Nikkei, referring to fellow Chinese telecoms giant ZTE which was also targeted by Washington.

ZTE came close to collapse last year after US firms were banned from selling it vital components over its continued dealings with Iran and North Korea.

Trump later reversed the decision and in return ZTE had to pay a $1 billion fine and accept monitoring by the US Commerce Department.

Chinese telecoms giant Huawei is ready to deal with Washington's crackdown and will reduce its reliance on US components, its founder told Japanese media. President Donald Trump effectively barred Huawei from the US market on Wednesday and added it to a list which would restrict US sales to the firm amid an escalating trade war with Beijing.

Chinese telecoms giant Huawei is ready to deal with Washington's crackdown and will reduce its reliance on US components, its founder told Japanese media. President Donald Trump effectively barred Huawei from the US market on Wednesday and added it to a list which would restrict US sales to the firm amid an escalating trade war with Beijing. "We have already been preparing for this," Huawei founder and CEO Ren Zhengfei told a group of Japanese journalists Saturday in his first interview since Trump's move. Ren said Huawei would continue to develop its own components to reduce its dependence on outside suppliers. Huawei is a rapidly expanding leader in 5G technology but remains dependent on foreign suppliers. It buys about $67 billion worth of components each year, including about $11 billion from US suppliers, according to The Nikkei business daily. The usually elusive Ren, 74, has come out of the shadows in recent months in the face of increasing pressure on his company. Ren's army background and Huawei's opaque culture have fuelled suspicions in some countries that the firm has links with the Chinese military and intelligence services. Huawei is also the target of an intense campaign by Washington, which has been trying to persuade allies not to allow China a role in building next-generation 5G mobile networks. US government agencies are already banned from buying equipment from Huawei. "We have not done anything which violates the law," Ren said, adding the US measures would have a limited impact. "It is expected that Huawei's growth may slow, but only slightly," he said, according The Nikkei. A former army technician, Ren founded Huawei in 1987 with only $5,000, according to company lore. × Huawei now claims to have nearly 190,000 employees, operates in 170 countries, and reported revenue of more than $100 billion in 2018. Ren said his company would not yield to pressure from Washington. "We will not change our management at the request of the US or accept monitoring, as ZTE has done," he said, as quoted by The Nikkei, referring to fellow Chinese telecoms giant ZTE which was also targeted by Washington. ZTE came close to collapse last year after US firms were banned from selling it vital components over its continued dealings with Iran and North Korea. Trump later reversed the decision and in return ZTE had to pay a $1 billion fine and accept monitoring by the US Commerce Department.

Huawei will not bow to US pressure: Founder and CEO Ren Zhengfei

Despite Pressure From The U.S., China Continues To Dominate Tech Space Here's a report of China's domination of the tech space. Clearly pressure from the U.S. hasn't hurt China or Huawei

Gravitas: China dominates tech space, Huawei rules the markets

Facebook chief operating officer Sheryl Sandberg said Friday a breakup of big US technology would not address "underlying issues" facing the sector and suggested that such a move could help rivals in China.

Sandberg, interviewed on CNBC television, was asked about the<a href="https://www.wionews.com/world/facebook-rejects-co-founder-chris-hughes-call-for-breakup-senator-urges-us-antitrust-probe-217370"> latest calls to break up Facebook </a>and other major Silicon Valley firms which dominate key sectors.

"You could break us up, you could break other tech companies up, but you actually don't address the underlying issues people are concerned about,” Sandberg said in the interview.

Sandberg said the social network used by more than two billion people was working to address concerns about election security, online violence promotion and data protection, but that a breakup might only serve to help competitors from China.

"While people are concerned with the size and power of tech companies, there's also a concern in the United States with the size and power of Chinese companies, and the realisation that those companies are not going to be broken up," she said.

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The comments come a week after one of Facebook's co-founders, Chris Hughes, said in an essay "it's time to break up Facebook," warning that it has gained too much power over what people see online.

Democratic presidential candidate Elizabeth Warren has also called for a breakup that could require Facebook to spin off its Instagram and WhatsApp units.

Sandberg maintained that Facebook's teams are working hard on safety and security issues, echoing comments since the company came under fire over a series of missteps including the leaking of data in 2016 to a consultancy working for Donald Trump.

"We know at Facebook we have a real possibility to do better and earn back people’s trust," she said.

Facebook chief executive Mark Zuckerberg said this week he was optimistic about progress toward a new regulatory framework that would apply to internet platforms.

"Overall I think in order for people to trust the internet... &nbsp;there needs to be the right regulation put in place," Zuckerberg said after meetings with French President Emmanuel Macron to discuss a report called "Creating a French Response to Make Social Media Responsible."

Facebook chief operating officer Sheryl Sandberg said Friday a breakup of big US technology would not address "underlying issues" facing the sector and suggested that such a move could help rivals in China.

Facebook chief operating officer Sheryl Sandberg said Friday a breakup of big US technology would not address "underlying issues" facing the sector and suggested that such a move could help rivals in China. Sandberg, interviewed on CNBC television, was asked about the latest calls to break up Facebook and other major Silicon Valley firms which dominate key sectors. "You could break us up, you could break other tech companies up, but you actually don't address the underlying issues people are concerned about,” Sandberg said in the interview. Sandberg said the social network used by more than two billion people was working to address concerns about election security, online violence promotion and data protection, but that a breakup might only serve to help competitors from China. "While people are concerned with the size and power of tech companies, there's also a concern in the United States with the size and power of Chinese companies, and the realisation that those companies are not going to be broken up," she said. × The comments come a week after one of Facebook's co-founders, Chris Hughes, said in an essay "it's time to break up Facebook," warning that it has gained too much power over what people see online. Democratic presidential candidate Elizabeth Warren has also called for a breakup that could require Facebook to spin off its Instagram and WhatsApp units. Sandberg maintained that Facebook's teams are working hard on safety and security issues, echoing comments since the company came under fire over a series of missteps including the leaking of data in 2016 to a consultancy working for Donald Trump. "We know at Facebook we have a real possibility to do better and earn back people’s trust," she said. Facebook chief executive Mark Zuckerberg said this week he was optimistic about progress toward a new regulatory framework that would apply to internet platforms. "Overall I think in order for people to trust the internet... there needs to be the right regulation put in place," Zuckerberg said after meetings with French President Emmanuel Macron to discuss a report called "Creating a French Response to Make Social Media Responsible."

Facebook breakup could boost China rivals: Sheryl Sandberg

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

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

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

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

Chinese President Xi Jinping declared Wednesday there was "no clash" of civilisations and denounced racial supremacy as "stupid" amid tensions with the United States and concerns over Beijing's rising global power.

His remarks came after a <a href="https://www.wionews.com/world/trump-says-he-feels-us-china-trade-talks-going-to-be-very-successful-218515">top-level US official last month </a>described the rivalry between China and the US as "a fight with a really different civilisation and a different ideology".

Kiron Skinner, the director of policy planning at the US State Department, put it in racial terms, telling a security forum that China was the<a href="https://www.wionews.com/world/victory-awaits-in-china-trade-war-trump-tells-farmers-218859"> first US "great power competitor that is not Caucasian"</a>.

"Thinking that one's own race and culture are superior, and insisting on transforming or even replacing other civilisations is stupid in its understanding and disastrous in practice," Xi said at the opening ceremony of the Conference on Dialogue of Asian Civilisations in Beijing.

"There is no clash between different civilisations, (we) just need to have the eye to appreciate the beauty in all civilisations," he added, without mentioning the United States.

Xi's speech comes less than a week after trade negotiations between Washington and Beijing took a turn for the worse, with the US hiking tariffs on $200 billion in Chinese merchandise and targeting duties on $300 billion more.

On Monday, China retaliated with an announcement that it would raise tariffs on $60 billion worth of US goods from June 1.

The two countries are locked in a battle for global influence, with diplomatic and economic tensions ranging from US military aid to self-ruled Taiwan to criticism of Beijing's Belt and Road global infrastructure programme.

China's rising influence has also raised alarm bells in Asia, especially as it continues to assert its vast territorial claims in the disputed South China Sea and East China Sea.

Last month, Philippine President Rodrigo Duterte warned Beijing to back off from a Manila-held island in the South China Sea, threatening possible military action if Beijing "touched" the island.

Xi's speech on Wednesday also focused on promoting cross-cultural collaboration across the region, and urged other Asian nations to "strengthen cultural confidence".

"On the foundation of the brilliant achievements obtained by our ancestors, we will... strive to continue writing the new glory of Asian civilisations," he said.

Chinese President Xi Jinping declared Wednesday there was "no clash" of civilisations and denounced racial supremacy as "stupid" amid tensions with the United States and concerns over Beijing's rising global power.

Chinese President Xi Jinping declared Wednesday there was "no clash" of civilisations and denounced racial supremacy as "stupid" amid tensions with the United States and concerns over Beijing's rising global power. His remarks came after a top-level US official last month described the rivalry between China and the US as "a fight with a really different civilisation and a different ideology". Kiron Skinner, the director of policy planning at the US State Department, put it in racial terms, telling a security forum that China was the first US "great power competitor that is not Caucasian". "Thinking that one's own race and culture are superior, and insisting on transforming or even replacing other civilisations is stupid in its understanding and disastrous in practice," Xi said at the opening ceremony of the Conference on Dialogue of Asian Civilisations in Beijing. "There is no clash between different civilisations, (we) just need to have the eye to appreciate the beauty in all civilisations," he added, without mentioning the United States. Xi's speech comes less than a week after trade negotiations between Washington and Beijing took a turn for the worse, with the US hiking tariffs on $200 billion in Chinese merchandise and targeting duties on $300 billion more. On Monday, China retaliated with an announcement that it would raise tariffs on $60 billion worth of US goods from June 1. The two countries are locked in a battle for global influence, with diplomatic and economic tensions ranging from US military aid to self-ruled Taiwan to criticism of Beijing's Belt and Road global infrastructure programme. China's rising influence has also raised alarm bells in Asia, especially as it continues to assert its vast territorial claims in the disputed South China Sea and East China Sea. Last month, Philippine President Rodrigo Duterte warned Beijing to back off from a Manila-held island in the South China Sea, threatening possible military action if Beijing "touched" the island. Xi's speech on Wednesday also focused on promoting cross-cultural collaboration across the region, and urged other Asian nations to "strengthen cultural confidence". "On the foundation of the brilliant achievements obtained by our ancestors, we will... strive to continue writing the new glory of Asian civilisations," he said.

There is no clash between different civilisations, says President Xi amid US-China trade war

The United States on June 17 will hold public hearings on President Donald Trump's proposal to put tariffs on another $300 billion in Chinese goods, according to a document published Monday.

The hearing is part of Trump's escalating trade offensive against Beijing. If the tariffs are imposed, they would make virtually all Chinese imports to the United States subject to steep, punitive duties.

Beijing on Monday fired its latest counter-salvo, raising tariffs on $60 billion in US exports in retaliation for Trump's decision to bump up duties on $200 billion in Chinese exports.

But Trump told reporters on Monday he had not yet decided whether to proceed with the $300 billion round.

"That is a tremendous amount of money that would come into our country," Trump said, reiterating his belief that duties are paid by trade adversaries, not US importers and consumers.

"I have not made that decision yet."

Members of the public, such as diplomats, trade bodies and individuals, also have until the hearing date to submit written comments before officials finalize the list of goods that face duties of up to 25 per cent, according to the US Trade Representative's office.

US trade with China hit record levels last year, with $540 billion in imports and $$120 billion in exports, according to the US Commerce Department.

The United States on June 17 will hold public hearings on President Donald Trump's proposal to put tariffs on another $300 billion in Chinese goods, according to a document published Monday.

The United States on June 17 will hold public hearings on President Donald Trump's proposal to put tariffs on another $300 billion in Chinese goods, according to a document published Monday. The hearing is part of Trump's escalating trade offensive against Beijing. If the tariffs are imposed, they would make virtually all Chinese imports to the United States subject to steep, punitive duties. Beijing on Monday fired its latest counter-salvo, raising tariffs on $60 billion in US exports in retaliation for Trump's decision to bump up duties on $200 billion in Chinese exports. But Trump told reporters on Monday he had not yet decided whether to proceed with the $300 billion round. "That is a tremendous amount of money that would come into our country," Trump said, reiterating his belief that duties are paid by trade adversaries, not US importers and consumers. "I have not made that decision yet." Members of the public, such as diplomats, trade bodies and individuals, also have until the hearing date to submit written comments before officials finalize the list of goods that face duties of up to 25 per cent, according to the US Trade Representative's office. US trade with China hit record levels last year, with $540 billion in imports and $$120 billion in exports, according to the US Commerce Department.

US to hold China tariffs hearing on June 17

Wall Street sank on Monday after<a href="https://www.wionews.com/world/now-china-imposes-tariffs-on-60-billion-worth-of-us-goods-218421"> China defied Washington by announcing retaliatory tariffs</a>, the latest salvo in the two countries' increasingly belligerent trade war, sending investors fleeing equities for less risky assets.

All three major US&nbsp;indexes lost ground in a widespread sell-off, with the tech-heavy Nasdaq posting its biggest one-day percentage loss this year. The S&amp;P 500 and the Dow both had their largest percentage drop since January 3.

China said it would impose higher tariffs on $60 billion in US goods despite President Donald Trump's warnings not to retaliate against additional tariffs on Chinese imports announced by the White House on Friday. The move stoked fears of a global economic downturn.

"The market's realizing that this was an absolute breakdown of (trade) talks and everything is gone backwards," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

"It could be very bad," O'Rourke added. "There's a lot of uncertainty. This should lead to further slowing in the economy."

Investors responded by fleeing equities for safe-haven assets.

US&nbsp;Treasury yields fell to six-week lows, with 10-year yields falling below those of 3-month bills, an inversion seen by many as a potential harbinger of recession.

Gold prices rose to a near three-month high.

The CBOE Volatility index, a gauge of investor anxiety, posted its biggest daily point gain so far this year.

The Dow Jones Industrial Average fell 617.38 points, or 2.38%, to 25,324.99, the S&amp;P 500 lost 69.53 points, or 2.41%, to 2,811.87 and the Nasdaq Composite dropped 269.92 points, or 3.41%, to 7,647.02.

Of the 11 major sectors of the S&amp;P 500, only utilities ended the session in the black. Trade-sensitive tech companies suffered the largest percentage decline.

Among stocks particularly vulnerable to US-China tariffs, Boeing Co slid 4.9% and Caterpillar Inc fell 4.6% while the Philadelphia Chip index was down 4.7%, posting its biggest percentage drop since January&nbsp;3 and extending last week's 6% decline.

Shares of Apple Inc sank 5.8% on the double whammy of heightened trade tensions and a decision by the US&nbsp;Supreme Court to allow an antitrust lawsuit accusing the company of monopolizing the iPhone app market.

Uber Technologies Inc extended its slide, falling 10.8% on its second day as a publicly traded company following Friday's underwhelming debut.

Ride-hailing peer Lyft Inc was also down, dropping 5.8%.

Shares of Tesla Inc fell 5.2% to their lowest in more than two years.

First quarter reporting season is in the home stretch, and of the 451 companies in the S&amp;P 500 that have posted results, 75.2% have come in above expectations.

Analysts now see an S&amp;P 500 earnings increase of 1.3% for the January-March period, significantly better than the 2% decrease expected on April 1.

Declining issues outnumbered advancing ones on the NYSE by a 4.81-to-1 ratio; on Nasdaq, a 5.12-to-1 ratio favoured decliners.

The S&amp;P 500 posted 12 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 30 new highs and 151 new lows.

Volume on US&nbsp;exchanges was 8.24 billion shares, compared to the 6.97 billion-share average over the last 20 trading days.

Wall Street sank on Monday after China defied Washington by announcing retaliatory tariffs, the latest salvo in the two countries' increasingly belligerent trade war, sending investors fleeing equities for less risky assets.

Wall Street sank on Monday after China defied Washington by announcing retaliatory tariffs, the latest salvo in the two countries' increasingly belligerent trade war, sending investors fleeing equities for less risky assets. All three major US indexes lost ground in a widespread sell-off, with the tech-heavy Nasdaq posting its biggest one-day percentage loss this year. The S&P 500 and the Dow both had their largest percentage drop since January 3. China said it would impose higher tariffs on $60 billion in US goods despite President Donald Trump's warnings not to retaliate against additional tariffs on Chinese imports announced by the White House on Friday. The move stoked fears of a global economic downturn. "The market's realizing that this was an absolute breakdown of (trade) talks and everything is gone backwards," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "It could be very bad," O'Rourke added. "There's a lot of uncertainty. This should lead to further slowing in the economy." Investors responded by fleeing equities for safe-haven assets. US Treasury yields fell to six-week lows, with 10-year yields falling below those of 3-month bills, an inversion seen by many as a potential harbinger of recession. Gold prices rose to a near three-month high. The CBOE Volatility index, a gauge of investor anxiety, posted its biggest daily point gain so far this year. The Dow Jones Industrial Average fell 617.38 points, or 2.38%, to 25,324.99, the S&P 500 lost 69.53 points, or 2.41%, to 2,811.87 and the Nasdaq Composite dropped 269.92 points, or 3.41%, to 7,647.02. Of the 11 major sectors of the S&P 500, only utilities ended the session in the black. Trade-sensitive tech companies suffered the largest percentage decline. Among stocks particularly vulnerable to US-China tariffs, Boeing Co slid 4.9% and Caterpillar Inc fell 4.6% while the Philadelphia Chip index was down 4.7%, posting its biggest percentage drop since January 3 and extending last week's 6% decline. Shares of Apple Inc sank 5.8% on the double whammy of heightened trade tensions and a decision by the US Supreme Court to allow an antitrust lawsuit accusing the company of monopolizing the iPhone app market. Uber Technologies Inc extended its slide, falling 10.8% on its second day as a publicly traded company following Friday's underwhelming debut. Ride-hailing peer Lyft Inc was also down, dropping 5.8%. Shares of Tesla Inc fell 5.2% to their lowest in more than two years. First quarter reporting season is in the home stretch, and of the 451 companies in the S&P 500 that have posted results, 75.2% have come in above expectations. Analysts now see an S&P 500 earnings increase of 1.3% for the January-March period, significantly better than the 2% decrease expected on April 1. Declining issues outnumbered advancing ones on the NYSE by a 4.81-to-1 ratio; on Nasdaq, a 5.12-to-1 ratio favoured decliners. The S&P 500 posted 12 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 30 new highs and 151 new lows. Volume on US exchanges was 8.24 billion shares, compared to the 6.97 billion-share average over the last 20 trading days.

Wall Street shudders as US-China trade war intensifies

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

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

China Neglect US President Trump's Warning Not To Retaliate. Global Markets Are Struggling As Trade Disputes Between US & China Come To The Fore.

Gravitas: US-China Trade Tensions Escalate, China Announces Retaliatory Tariffs

China has announced tariff on US goods worth $60 Bn. This tariff to come into effect from June 1. Watch this video to know more.

Now China announces tariff on US goods worth $60 Bn

&nbsp;By Tony Walker 
 
The Chinese have a saying attributed to the philosopher and writer Lao Tzu: every journey begins with a single step.

If that is the case, US-China relations have taken a step backwards in negotiators’ failure to advance trade negotiations in the latest round of talks in Washington, which ended unsatisfactorily.

China has said it is willing to resume discussions. The US has sent mixed messages, including a series of bombastic tweets from President Donald Trump warning of a worse deal if an agreement is not reached before the next presidential election.

Washington responded to the inability of the two sides to bridge their differences by raising tariffs on $200 billion worth of Chinese imports to 25 per cent from 10 per cent already imposed.

The administration has threatened to extend tariff increases to virtually all Chinese imports. This would likely prompt a trade war.

Sharp differences remain over the wording of the trade agreement itself. Beijing regards the language as too harsh on intellectual property and trade secrets theft, forced technology transfers, competition policy, access to financial services, and currency manipulation.

China appears to have hardened its position on some of these issues in the course of the negotiations, after having earlier indicated more flexibility.

This does not augur well for an early resolution.

The US has also clearly resolved to increase pressure on China on other fronts, in what risks becoming deepening differences on a range of issues.

As trade negotiators convened in Washington two US warships sailed near disputed islands and island features claimed by China in the South China Sea. This is the third time this year the US has conducted freedom of navigation operations next to Chinese-claimed territory.

Coinciding with last week’s stalled trade talks, the US also barred the large Chinese telecommunications operator, China Mobile Ltd, from operating in the US. Washington cited security concerns.

This comes in the wake of the US decision to ban the Chinese telecommunication communications equipment supplier, Huawei, from participating in the buildout of its 5G network.

US pressure led to three other members of the so-called “five eyes” security partnership, including Australia, to bar Huawei as well. Britain, alone among the “five eyes”, has agreed to allow the Chinese company to participate in non-core aspects of the 5G buildout.

This will be viewed in Beijing as an indication the US is using its economic weight to confront China more broadly and encourage its allies to follow suit.

US attempts to extradite the daughter of the founder of Huawei from Canada to face charges for breaching sanctions against Iran risk further souring relations.

While it would be premature to describe a messy pause in US-China trade negotiations as an inflexion moment in an increasingly complex relationship, it is unarguable that US-China relations have entered a new and more fractious phase.

What is unclear is whether a more overtly competitive relationship is bringing closer the day when the gloves really do come off in a way that threatens global harmony.

In any case, it seems clear a period of relative amity, during which the US and China sought to achieve a reasonable balance between an old and a new global order, is over.

Benn Steil, director of the international economics program at the Council on Foreign Relations, told Bloomberg that rivalry between the US and China for control of everything from global trade routes to cyberspace will drive the relationship for years to come.

“The heady era of global integration is gone,” Steil said.

This view may prove alarmist, but, on latest indications, overcoming trade and other differences between Washington and Beijing will be easier said than done.

Trump’s arrival in the White House, with a team of trade advisers who have made careers railing against China’s uncompetitive trade practices, has brought trading differences more sharply into focus.

Disputes over intellectual property, market access, alleged currency manipulation and a host of other trade issues have been present ever since China began its inexorable rise.

US politicians of left and right agitate against what’s perceived to be China’s mercantilist trade policies. This is blamed for American jobs draining away from the country’s manufacturing heartland.

Prominent Democrats, including Senate minority leader Chuck Schumer, support Trump’s tough stand on China. Democratic presidential hopefuls like Bernie Sanders have accused Trump of not delivering on his promises to upend US trading relationships.

Trump’s unhelpful response to the failure in Washington to achieve breakthrough points to an uncertain conclusion to complex negotiations that would lay the foundation for a more stable relationship.

This contribution to the debate provides an indication of the extent to which US-China relations have become enmeshed in American domestic politics.

Trade frictions with China risk becoming more – not less – intense as a presidential election year approaches in 2020.

Presidential campaigns tend to expose sharper differences on trade as the two sides compete for votes in the American rust belt, where factory closures have killed off tens of thousands of jobs.

One of Trump’s boasts is that he has reversed this trend by encouraging American business to reinvest onshore and bring jobs home. But disruptions to trade have their costs.

Trump’s tariff war against China has hit American farmers hard as the Chinese have retaliated by seeking alternative markets for agricultural commodities such as soybeans.

In other words, China is not without an ability to strike back at US attempts to strong-arm it over trade.

In the end, a resolution of a damaging US-China trade dispute that risks broader damage to a global trading system will require the intervention of respective leaders, Trump and his Chinese counterpart, Xi Jinping. The two will meet in June at the Osaka G20 leaders’ summit.

What is complicating that scenario is that crude US attempts to ramp up pressure on Beijing may well prove counterproductive. In Chinese culture, the issue of “face” is important.

Xi will not want to lose “face” in negotiations with Trump by yielding ground unduly. As US academic Patrick Chovanec writes:

"If we want China to embrace structural reform that requires real commitment – it’s not something we can just twist their arm to do, they have to buy into it. When you basically strong-arm them into doing something they really don’t want to do, and they’re convinced it’s harmful to their interests, at some point they are going to cheat, push back, or scuttle it, it’s just a question of when, because they haven’t bought into it."

US-China trade negotiations risk-taking more than a few steps back. 
 
(Tony Walker is Adjunct Professor, School of Communications, La Trobe University)

(This article was originally published on The DNA. Read the <a href="https://theconversation.com/stakes-are-high-as-us-ups-the-ante-on-trade-dispute-with-china-116985">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 Tony Walker The Chinese have a saying attributed to the philosopher and writer Lao Tzu: every journey begins with a single step. If that is the case, US-China relations have taken a step backwards in negotiators’ failure to advance trade negotiations in the latest round of talks in Washington, which ended unsatisfactorily.

By Tony Walker The Chinese have a saying attributed to the philosopher and writer Lao Tzu: every journey begins with a single step. If that is the case, US-China relations have taken a step backwards in negotiators’ failure to advance trade negotiations in the latest round of talks in Washington, which ended unsatisfactorily. China has said it is willing to resume discussions. The US has sent mixed messages, including a series of bombastic tweets from President Donald Trump warning of a worse deal if an agreement is not reached before the next presidential election. Washington responded to the inability of the two sides to bridge their differences by raising tariffs on $200 billion worth of Chinese imports to 25 per cent from 10 per cent already imposed. The administration has threatened to extend tariff increases to virtually all Chinese imports. This would likely prompt a trade war. Sharp differences remain over the wording of the trade agreement itself. Beijing regards the language as too harsh on intellectual property and trade secrets theft, forced technology transfers, competition policy, access to financial services, and currency manipulation. China appears to have hardened its position on some of these issues in the course of the negotiations, after having earlier indicated more flexibility. This does not augur well for an early resolution. The US has also clearly resolved to increase pressure on China on other fronts, in what risks becoming deepening differences on a range of issues. As trade negotiators convened in Washington two US warships sailed near disputed islands and island features claimed by China in the South China Sea. This is the third time this year the US has conducted freedom of navigation operations next to Chinese-claimed territory. Coinciding with last week’s stalled trade talks, the US also barred the large Chinese telecommunications operator, China Mobile Ltd, from operating in the US. Washington cited security concerns. This comes in the wake of the US decision to ban the Chinese telecommunication communications equipment supplier, Huawei, from participating in the buildout of its 5G network. US pressure led to three other members of the so-called “five eyes” security partnership, including Australia, to bar Huawei as well. Britain, alone among the “five eyes”, has agreed to allow the Chinese company to participate in non-core aspects of the 5G buildout. This will be viewed in Beijing as an indication the US is using its economic weight to confront China more broadly and encourage its allies to follow suit. US attempts to extradite the daughter of the founder of Huawei from Canada to face charges for breaching sanctions against Iran risk further souring relations. While it would be premature to describe a messy pause in US-China trade negotiations as an inflexion moment in an increasingly complex relationship, it is unarguable that US-China relations have entered a new and more fractious phase. What is unclear is whether a more overtly competitive relationship is bringing closer the day when the gloves really do come off in a way that threatens global harmony. In any case, it seems clear a period of relative amity, during which the US and China sought to achieve a reasonable balance between an old and a new global order, is over. Benn Steil, director of the international economics program at the Council on Foreign Relations, told Bloomberg that rivalry between the US and China for control of everything from global trade routes to cyberspace will drive the relationship for years to come. “The heady era of global integration is gone,” Steil said. This view may prove alarmist, but, on latest indications, overcoming trade and other differences between Washington and Beijing will be easier said than done. Trump’s arrival in the White House, with a team of trade advisers who have made careers railing against China’s uncompetitive trade practices, has brought trading differences more sharply into focus. Disputes over intellectual property, market access, alleged currency manipulation and a host of other trade issues have been present ever since China began its inexorable rise. US politicians of left and right agitate against what’s perceived to be China’s mercantilist trade policies. This is blamed for American jobs draining away from the country’s manufacturing heartland. Prominent Democrats, including Senate minority leader Chuck Schumer, support Trump’s tough stand on China. Democratic presidential hopefuls like Bernie Sanders have accused Trump of not delivering on his promises to upend US trading relationships. Trump’s unhelpful response to the failure in Washington to achieve breakthrough points to an uncertain conclusion to complex negotiations that would lay the foundation for a more stable relationship. This contribution to the debate provides an indication of the extent to which US-China relations have become enmeshed in American domestic politics. Trade frictions with China risk becoming more – not less – intense as a presidential election year approaches in 2020. Presidential campaigns tend to expose sharper differences on trade as the two sides compete for votes in the American rust belt, where factory closures have killed off tens of thousands of jobs. One of Trump’s boasts is that he has reversed this trend by encouraging American business to reinvest onshore and bring jobs home. But disruptions to trade have their costs. Trump’s tariff war against China has hit American farmers hard as the Chinese have retaliated by seeking alternative markets for agricultural commodities such as soybeans. In other words, China is not without an ability to strike back at US attempts to strong-arm it over trade. In the end, a resolution of a damaging US-China trade dispute that risks broader damage to a global trading system will require the intervention of respective leaders, Trump and his Chinese counterpart, Xi Jinping. The two will meet in June at the Osaka G20 leaders’ summit. What is complicating that scenario is that crude US attempts to ramp up pressure on Beijing may well prove counterproductive. In Chinese culture, the issue of “face” is important. Xi will not want to lose “face” in negotiations with Trump by yielding ground unduly. As US academic Patrick Chovanec writes: "If we want China to embrace structural reform that requires real commitment – it’s not something we can just twist their arm to do, they have to buy into it. When you basically strong-arm them into doing something they really don’t want to do, and they’re convinced it’s harmful to their interests, at some point they are going to cheat, push back, or scuttle it, it’s just a question of when, because they haven’t bought into it." US-China trade negotiations risk-taking more than a few steps back. (Tony Walker is Adjunct Professor, School of Communications, La Trobe University) (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Stakes are high as US ups the ante on trade dispute with China

China's foreign ministry said on Monday the country will never surrender to foreign pressure after Washington renewed its threat to impose tariffs on all Chinese imports in an escalating trade dispute.

Foreign ministry spokesman Geng Shuang made the comments at a daily briefing in Beijing.

The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal. Trump had delayed the tariffs as negotiations between Washington and Beijing were progressing.

The trade dispute between the United States and China, the world’s two biggest economies, has been escalating for over a year.&nbsp;

Both nations have repeatedly slapped billions of dollars worth of retaliatory tariffs on each other's goods as the rivalry between them has soared.

On Friday, Trump issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations.

Meanwhile, <a href="https://www.wionews.com/world/china-still-cautiously-optimistic-on-us-trade-talks-despite-new-tariffs-217928">China and the United States have agreed to hold more trade talks</a> in Beijing, Vice Premier Liu He had said.

"Negotiations have not broken down," Liu, China's chief negotiator in the talks, said in Washington on Friday, according to state television on Saturday. "Quite the opposite, I think small setbacks are normal and inevitable during the negotiations of both countries. Looking forward, we are still cautiously optimistic," Liu said.

Earlier in the day, Trump on Twitter said, "China is "dreaming" that former Vice President Joe Biden or any Democratic candidate will win the 2020 presidential election as they "love ripping off America."&nbsp;

"China is DREAMING that Sleepy Joe Biden, or any of the others, gets elected in 2020. They LOVE ripping off America!" Trump tweeted.

China's foreign ministry said on Monday the country will never surrender to foreign pressure after Washington renewed its threat to impose tariffs on all Chinese imports in an escalating trade dispute.

China's foreign ministry said on Monday the country will never surrender to foreign pressure after Washington renewed its threat to impose tariffs on all Chinese imports in an escalating trade dispute. Foreign ministry spokesman Geng Shuang made the comments at a daily briefing in Beijing. The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal. Trump had delayed the tariffs as negotiations between Washington and Beijing were progressing. The trade dispute between the United States and China, the world’s two biggest economies, has been escalating for over a year. Both nations have repeatedly slapped billions of dollars worth of retaliatory tariffs on each other's goods as the rivalry between them has soared. On Friday, Trump issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations. Meanwhile, China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He had said. "Negotiations have not broken down," Liu, China's chief negotiator in the talks, said in Washington on Friday, according to state television on Saturday. "Quite the opposite, I think small setbacks are normal and inevitable during the negotiations of both countries. Looking forward, we are still cautiously optimistic," Liu said. Earlier in the day, Trump on Twitter said, "China is "dreaming" that former Vice President Joe Biden or any Democratic candidate will win the 2020 presidential election as they "love ripping off America." "China is DREAMING that Sleepy Joe Biden, or any of the others, gets elected in 2020. They LOVE ripping off America!" Trump tweeted.

China says it will never surrender to foreign pressure amid trade dispute

China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He said as US President Donald Trump ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China.

Liu voiced a measured optimism on reaching a deal, but said there were "issues of principle" on which China would not back down.

"Negotiations have not broken down," Liu, China's chief negotiator in the talks, said in Washington on Friday, according to state television on Saturday. "Quite the opposite, I think small setbacks are normal and inevitable during the negotiations of both countries. Looking forward, we are still cautiously optimistic," Liu said.

Liu's optimism was tempered by US Treasury Secretary Steven Mnuchin, who told CNBC on Friday that there were no further talks with China planned "as of now."

Trump wrote on Twitter on Saturday that he thinks China felt they were being "beaten so badly" in the recent negotiations that they may as well wait for the 2020 presidential election "to see if they could get lucky &amp; have a Democrat win - in which case they would continue to rip-off the USA for $500 Billion a year."

"The only problem is that they know I am going to win," Trump wrote on Twitter, "... and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!"

The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal. Trump had delayed the tariffs as negotiations between Washington and Beijing were progressing.

On Friday, Trump issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations.

China strongly opposes the latest US tariff hike, and as a nation, has to respond to that, Liu told a small group of Chinese reporters in the video clip.

"Right now, both sides have reached mutual understanding in many things, but frankly speaking, there are also differences. We think these differences are significant issues of principle," Liu said. "We absolutely cannot make concessions on such issues of principle."

He added that talks would continue in Beijing, but gave no details. Underscoring a lack of progress in the talks, Trump ordered a further escalation of tariffs.

Trump's move would subject about $300 billion worth of Chinese imports to punitive tariffs, US Trade Representative Robert Lighthizer said in a statement on Friday. Lighthizer said a final decision has not been made on the new duties, which would come on top of an early Friday tariff rate increase, to 25% from 10%, on $200 billion worth of Chinese imports.

China's widely-read Global Times newspaper, which while published by the ruling Communist Party's official People's Daily newspaper does not speak for the government, said in a Sunday editorial that the United States has "seriously underestimated China's endurance".

"Washington tried to bring up terms that either harmed the sovereignty and dignity of China, or that were seriously unequal and unrealistic. Those requests have made the negotiations more difficult," the paper said.

China details differences

Three differences remain between the two countries, according to China's account of the latest talks.

One of those is over tariffs, Liu said, according to a transcript of the Q&amp;A published by Phoenix, a Hong Kong-based television station that is close to Beijing. China believes that tariffs were the genesis of the trade dispute, and that if both sides wanted to reach an agreement, then all tariffs must be eliminated, Liu said.

The second is about procurement, on which an initial consensus was reached between the leaders of the two countries in Argentina late last year. The two sides now have differing views on the volumes, Liu said. The third is over how balanced the text of the draft agreement should be, he said.

"Every nation has its dignity, so the text ought to be balanced," Liu said.

Sources told Reuters this week that China had deleted its commitments in the draft agreement that said it would change laws to resolve core complaints of the United States: theft of US intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.

Liu denied the accusations of China's reneging on promises, saying China thought it was normal to make changes before a final deal. Both sides had differing views on how to phrase it, he said.

Liu said he hoped this issue would be resolved, so it was unnecessary to "overreact" to that point. Similar to Liu, Chinese state media said China would not give in on its core interests.

"China clearly requires that the trade procurement figures should be realistic; the text must be balanced and expressed in terms that are acceptable to the Chinese people and do not undermine the sovereignty and dignity of the country," the People's Daily newspaper said in a commentary on Saturday.

The trade war has weighed on the Chinese economy.

When asked about domestic concerns over how the latest tariffs could further pressure the economy, Liu said he was optimistic about China's economy in the longer term, adding that it had entered an up-cycle after bottoming out somewhat last year.

He said he believed the Chinese economy would maintain a stable and healthy trend despite some downward pressure, and that China had ample room for fiscal and monetary policy manoeuvres.

On Monday, hours after Trump said he intended to raise tariffs, the Chinese central bank cut the amount of reserves that some small and medium-sized banks need to hold, freeing up more funds for lending to cash-strapped firms.

China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He said as US President Donald Trump ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China.

China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He said as US President Donald Trump ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China. Liu voiced a measured optimism on reaching a deal, but said there were "issues of principle" on which China would not back down. "Negotiations have not broken down," Liu, China's chief negotiator in the talks, said in Washington on Friday, according to state television on Saturday. "Quite the opposite, I think small setbacks are normal and inevitable during the negotiations of both countries. Looking forward, we are still cautiously optimistic," Liu said. Liu's optimism was tempered by US Treasury Secretary Steven Mnuchin, who told CNBC on Friday that there were no further talks with China planned "as of now." Trump wrote on Twitter on Saturday that he thinks China felt they were being "beaten so badly" in the recent negotiations that they may as well wait for the 2020 presidential election "to see if they could get lucky & have a Democrat win - in which case they would continue to rip-off the USA for $500 Billion a year." "The only problem is that they know I am going to win," Trump wrote on Twitter, "... and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!" The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal. Trump had delayed the tariffs as negotiations between Washington and Beijing were progressing. On Friday, Trump issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations. China strongly opposes the latest US tariff hike, and as a nation, has to respond to that, Liu told a small group of Chinese reporters in the video clip. "Right now, both sides have reached mutual understanding in many things, but frankly speaking, there are also differences. We think these differences are significant issues of principle," Liu said. "We absolutely cannot make concessions on such issues of principle." He added that talks would continue in Beijing, but gave no details. Underscoring a lack of progress in the talks, Trump ordered a further escalation of tariffs. Trump's move would subject about $300 billion worth of Chinese imports to punitive tariffs, US Trade Representative Robert Lighthizer said in a statement on Friday. Lighthizer said a final decision has not been made on the new duties, which would come on top of an early Friday tariff rate increase, to 25% from 10%, on $200 billion worth of Chinese imports. China's widely-read Global Times newspaper, which while published by the ruling Communist Party's official People's Daily newspaper does not speak for the government, said in a Sunday editorial that the United States has "seriously underestimated China's endurance". "Washington tried to bring up terms that either harmed the sovereignty and dignity of China, or that were seriously unequal and unrealistic. Those requests have made the negotiations more difficult," the paper said. China details differences Three differences remain between the two countries, according to China's account of the latest talks. One of those is over tariffs, Liu said, according to a transcript of the Q&A published by Phoenix, a Hong Kong-based television station that is close to Beijing. China believes that tariffs were the genesis of the trade dispute, and that if both sides wanted to reach an agreement, then all tariffs must be eliminated, Liu said. The second is about procurement, on which an initial consensus was reached between the leaders of the two countries in Argentina late last year. The two sides now have differing views on the volumes, Liu said. The third is over how balanced the text of the draft agreement should be, he said. "Every nation has its dignity, so the text ought to be balanced," Liu said. Sources told Reuters this week that China had deleted its commitments in the draft agreement that said it would change laws to resolve core complaints of the United States: theft of US intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation. Liu denied the accusations of China's reneging on promises, saying China thought it was normal to make changes before a final deal. Both sides had differing views on how to phrase it, he said. Liu said he hoped this issue would be resolved, so it was unnecessary to "overreact" to that point. Similar to Liu, Chinese state media said China would not give in on its core interests. "China clearly requires that the trade procurement figures should be realistic; the text must be balanced and expressed in terms that are acceptable to the Chinese people and do not undermine the sovereignty and dignity of the country," the People's Daily newspaper said in a commentary on Saturday. The trade war has weighed on the Chinese economy. When asked about domestic concerns over how the latest tariffs could further pressure the economy, Liu said he was optimistic about China's economy in the longer term, adding that it had entered an up-cycle after bottoming out somewhat last year. He said he believed the Chinese economy would maintain a stable and healthy trend despite some downward pressure, and that China had ample room for fiscal and monetary policy manoeuvres. On Monday, hours after Trump said he intended to raise tariffs, the Chinese central bank cut the amount of reserves that some small and medium-sized banks need to hold, freeing up more funds for lending to cash-strapped firms.

China still 'cautiously optimistic' on US trade talks despite new tariffs

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