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

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

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

US-China trade war points to the real crisis that global leaders must confront at G20 Summit

By Allen Morrison and Stewart Black 
 
When US President Donald Trump meets Chinese leader Xi Jinping at the G-20 economic summit in Japan, hopes aren’t all that high that they will conclude with a comprehensive trade deal.

Nonetheless, most US business leaders and investors are optimistic that the two countries will eventually reach a trade agreement – and when they do, it will pry open Chinese markets and create a wealth of opportunities for US companies.

Specifically, American negotiators are pushing for a deal that could end forced technology transfers, improve intellectual property protection and widen access to China’s markets – all with the ultimate goal of creating a “level playing field” for US businesses.

Yet as beneficial as resolving intellectual property and technology transfer issues with China maybe – not to mention ending the trade war – this is not the biggest reason American companies have failed to do business in China. Rather, as our forthcoming research shows, their biggest failure stems from their inability to penetrate the country’s complex business ecosystems.

Changes to intellectual property regulations and tariff provisions will not magically fix this.

Doing business in China

Since the 1970s, foreign companies, including US businesses, have poured trillions of dollars into China to build global supply chains and access their markets.

In 2018, total foreign direct investment stocks in China reached a record $2.76 trillion, up from just over $915 billion a decade earlier.

For some Western companies as diverse as Coca-Cola, General Motors, Apple, Lego and L'Oréal, China has been a boon and remains a focus of their international expansion plans. After decades of commitment, they have made significant progress in China by emphasizing adaptability, delegation of decision-making, cultural learning, and talent acquisition and development.

But research we’re planning to publish later this summer shows that China remains an enigma for most U.S. businesses. Only 41 companies in the Standard &amp; Poor’s 500 stock index generate 10 per cent or more of their global revenues from China. Of the 30 largest companies in the index, only four have revenues that exceed 10 per cent of their global revenues.

And a 2017 Goldman Sachs analysis found that in all, S&amp;P 500 companies earned just 1 per cent of their revenues in China, compared with 30 per cent in total non-US sales.

Rise of the Chinese ‘megafirm’ 
 
No doubt Chinese government regulations, tariffs and the theft of intellectual property are among the significant barriers that have made it harder for US&nbsp;and other Western companies to do business in China. But we found that the biggest challenge is their failure to penetrate state-dominated business ecosystems built around what are essentially Chinese “megafirms.”

China’s largest conglomerates, which have grown an average of 20 per cent&nbsp;per year over the past decade have much in common with their Asian cousins. Like the chaebol of South Korea and keiretsu in Japan, affiliates and subsidiaries of Chinese megafirms are typically part of a network of cross-owned businesses. Ownership structures are difficult for outsiders to penetrate and act as nearly insurmountable barriers to entry for foreign companies.

But Chinese megafirms have a unique aspect to their structure and ownership: the role of the state, which includes national, provincial or municipal entities. Rather than serve as background context for decision-making within Chinese megafirms acting strictly as a regulator, the state is itself an owner and plays a much greater role than most Americans know.

The 10 biggest Chinese companies by revenue are all either state-owned or owned by a mixture of publicly listed investors and Chinese government entities. Of the 111 Chinese businesses on the Fortune Global 500 list in 2018, state-owned entities represented nearly 71%.

The rest were privately owned – many with publicly listed shares – but don’t let that fool you. With only a few exceptions, publicly listed companies in China are invariably partly owned by other companies in which operate in their ecosystem and these, in turn, are owned or partly owned by either the state or government-controlled entities.

Given the dearth of publicly accessible information and exacerbated by the maze of cross-ownerships, following the equity trail and fully understanding ownership is difficult in China and most often futile.

Success for foreign companies in China is invariably dependent on fitting into a major business ecosystem. These include networks of suppliers, assemblers, financial institutions, distributors, retailers and trading companies. At the center of this circle are typically one or several megafirms.

Unfortunately, the US businesses that can’t make it to the inside of that circle – the vast majority – are unable to prosper in China. And the Chinese government helps to pick who gets in, and who doesn’t.

Megafirms meet megabanks 
 
The Chinese government does not need to own a controlling share in order to exert powerful influence.

It can cause its companies to enter into new partnerships, diversify into new product lines, set up new production facilities, or expand distribution merely by signaling the desired outcomes through public or private statements, “introductions” to targeted partners and promises of new customers and revenue streams.

The government also uses Chinese “megabanks” to drive economic growth according to national priorities. In 2018, nearly 65 per cent of all bank loans in China were to corporate entities, twice as high as in the U.S. Megafirms are provided funding at preferential rates, leaving those on the outside at a disadvantage.

The banking sector in China is huge, with total assets of about $35 trillion in 2018, more than three times the country’s entire GDP. This circular financing feeds corporate growth and creates a circular system of codependency.

Because foreign companies are outside the system, they are at inherent disadvantage when it comes to attaining local loans from Chinese banks.

That creates another problem for Western companies. Most of them invest overseas with the goal of repatriating profits back home. China makes this very difficult. Which means they typically have to bring money in from their home countries – but because of Chinese tax rules and strict foreign exchange controls, they also have difficulty getting their investments back out.

Impenetrable China

A positive resolution to the trade war – either during the G-20 or sometime later – would be welcomed by many. But we believe that whatever agreements are reached on tariffs or intellectual property, these structural issues will persist.

The US&nbsp;and other outside companies that want to do business in China face a dilemma: Do they reinvent themselves in an effort to become insiders in China? Doing so would not only require a change in mentality, but also a commitment to being “in China, for China.”

Otherwise, China’s business ecosystem, with its megafirms and layers of affiliates with the government at the center of it all, will remain largely impenetrable for Western companies. Irrespective of what happens at the G-20, China is very unlikely to change a system that has created massive wealth and prosperity for the Chinese people. 
&nbsp;

(Allen Morrison is Professor of Global Management, Arizona State University; Stewart Black is Professor of Management Practice in Global Leadership and Strategy, INSEAD)

(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.)&nbsp; 
&nbsp;

By Allen Morrison and Stewart Black When US President Donald Trump meets Chinese leader Xi Jinping at the G-20 economic summit in Japan, hopes aren’t all that high that they will conclude with a comprehensive trade deal.

By Allen Morrison and Stewart Black When US President Donald Trump meets Chinese leader Xi Jinping at the G-20 economic summit in Japan, hopes aren’t all that high that they will conclude with a comprehensive trade deal. Nonetheless, most US business leaders and investors are optimistic that the two countries will eventually reach a trade agreement – and when they do, it will pry open Chinese markets and create a wealth of opportunities for US companies. Specifically, American negotiators are pushing for a deal that could end forced technology transfers, improve intellectual property protection and widen access to China’s markets – all with the ultimate goal of creating a “level playing field” for US businesses. Yet as beneficial as resolving intellectual property and technology transfer issues with China maybe – not to mention ending the trade war – this is not the biggest reason American companies have failed to do business in China. Rather, as our forthcoming research shows, their biggest failure stems from their inability to penetrate the country’s complex business ecosystems. Changes to intellectual property regulations and tariff provisions will not magically fix this. Doing business in China Since the 1970s, foreign companies, including US businesses, have poured trillions of dollars into China to build global supply chains and access their markets. In 2018, total foreign direct investment stocks in China reached a record $2.76 trillion, up from just over $915 billion a decade earlier. For some Western companies as diverse as Coca-Cola, General Motors, Apple, Lego and L'Oréal, China has been a boon and remains a focus of their international expansion plans. After decades of commitment, they have made significant progress in China by emphasizing adaptability, delegation of decision-making, cultural learning, and talent acquisition and development. But research we’re planning to publish later this summer shows that China remains an enigma for most U.S. businesses. Only 41 companies in the Standard & Poor’s 500 stock index generate 10 per cent or more of their global revenues from China. Of the 30 largest companies in the index, only four have revenues that exceed 10 per cent of their global revenues. And a 2017 Goldman Sachs analysis found that in all, S&P 500 companies earned just 1 per cent of their revenues in China, compared with 30 per cent in total non-US sales. Rise of the Chinese ‘megafirm’ No doubt Chinese government regulations, tariffs and the theft of intellectual property are among the significant barriers that have made it harder for US and other Western companies to do business in China. But we found that the biggest challenge is their failure to penetrate state-dominated business ecosystems built around what are essentially Chinese “megafirms.” China’s largest conglomerates, which have grown an average of 20 per cent per year over the past decade have much in common with their Asian cousins. Like the chaebol of South Korea and keiretsu in Japan, affiliates and subsidiaries of Chinese megafirms are typically part of a network of cross-owned businesses. Ownership structures are difficult for outsiders to penetrate and act as nearly insurmountable barriers to entry for foreign companies. But Chinese megafirms have a unique aspect to their structure and ownership: the role of the state, which includes national, provincial or municipal entities. Rather than serve as background context for decision-making within Chinese megafirms acting strictly as a regulator, the state is itself an owner and plays a much greater role than most Americans know. The 10 biggest Chinese companies by revenue are all either state-owned or owned by a mixture of publicly listed investors and Chinese government entities. Of the 111 Chinese businesses on the Fortune Global 500 list in 2018, state-owned entities represented nearly 71%. The rest were privately owned – many with publicly listed shares – but don’t let that fool you. With only a few exceptions, publicly listed companies in China are invariably partly owned by other companies in which operate in their ecosystem and these, in turn, are owned or partly owned by either the state or government-controlled entities. Given the dearth of publicly accessible information and exacerbated by the maze of cross-ownerships, following the equity trail and fully understanding ownership is difficult in China and most often futile. Success for foreign companies in China is invariably dependent on fitting into a major business ecosystem. These include networks of suppliers, assemblers, financial institutions, distributors, retailers and trading companies. At the center of this circle are typically one or several megafirms. Unfortunately, the US businesses that can’t make it to the inside of that circle – the vast majority – are unable to prosper in China. And the Chinese government helps to pick who gets in, and who doesn’t. Megafirms meet megabanks The Chinese government does not need to own a controlling share in order to exert powerful influence. It can cause its companies to enter into new partnerships, diversify into new product lines, set up new production facilities, or expand distribution merely by signaling the desired outcomes through public or private statements, “introductions” to targeted partners and promises of new customers and revenue streams. The government also uses Chinese “megabanks” to drive economic growth according to national priorities. In 2018, nearly 65 per cent of all bank loans in China were to corporate entities, twice as high as in the U.S. Megafirms are provided funding at preferential rates, leaving those on the outside at a disadvantage. The banking sector in China is huge, with total assets of about $35 trillion in 2018, more than three times the country’s entire GDP. This circular financing feeds corporate growth and creates a circular system of codependency. Because foreign companies are outside the system, they are at inherent disadvantage when it comes to attaining local loans from Chinese banks. That creates another problem for Western companies. Most of them invest overseas with the goal of repatriating profits back home. China makes this very difficult. Which means they typically have to bring money in from their home countries – but because of Chinese tax rules and strict foreign exchange controls, they also have difficulty getting their investments back out. Impenetrable China A positive resolution to the trade war – either during the G-20 or sometime later – would be welcomed by many. But we believe that whatever agreements are reached on tariffs or intellectual property, these structural issues will persist. The US and other outside companies that want to do business in China face a dilemma: Do they reinvent themselves in an effort to become insiders in China? Doing so would not only require a change in mentality, but also a commitment to being “in China, for China.” Otherwise, China’s business ecosystem, with its megafirms and layers of affiliates with the government at the center of it all, will remain largely impenetrable for Western companies. Irrespective of what happens at the G-20, China is very unlikely to change a system that has created massive wealth and prosperity for the Chinese people. (Allen Morrison is Professor of Global Management, Arizona State University; Stewart Black is Professor of Management Practice in Global Leadership and Strategy, INSEAD) (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.)

A Trump-Xi trade deal would do little to fix the real problems US companies face in China

<a href="https://www.wionews.com/world/fedex-sues-us-government-over-shipment-restrictions-230266">FedEx</a> warned Tuesday that its fiscal 2020 earnings outlook remains clouded by trade war uncertainty as the company's chief executive criticized the Trump administration's lurch towards protectionism.

Overall the company is projecting 2020 diluted earnings-per-share to be down by a "mid-single-digit" percentage point compared with the 2019 level.

FedEx expects higher operating income in fiscal 2020 from its domestic package and freight shipping services as growing e-commerce activity fuels higher revenues.

But operating income is expected to be dented at FedEx Express, its international shipping division, in part because of trade uncertainty.&nbsp;

"We've been very disappointed over the last few years with the assumptions that we made on the growth of international trade, particularly with the Trump administration," Chief Executive Fred Smith said on a conference call with financial analysts.

"The United States policy since 1934... was to expand international trade and now we have a huge dispute with China where the US has basically become protectionist, defined as 'I'll make everything I need in my own borders.'"

Smith, long an outspoken advocate of free trade, also took issue with China's policy on trade, which he described as "mercantilist."

US President Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 gathering in Japan later this week, an occasion that investors are hoping will bring the two countries closer to an agreement after months of tariffs, countermeasures and threats.

Smith said the company remained committed to operating in China and "completely dedicated" to comply with Chinese laws. &nbsp;

He said the company has experienced more audits "to some degree" at its Guangzhou hub in the wake of the US-China dispute.

FedEx again apologized over delivery problems involving Chinese telecommunications giant Huawei following a US crackdown on the company that Trump has linked to the <a href="https://www.wionews.com/world/us-hopes-to-re-launch-china-trade-talks-will-not-accept-conditions-on-tariffs-230453">US-China trade war</a>.

Smith said the company's newly-filed lawsuit against the Commerce Department over export restrictions was not directly related to the Huawei case but was due to a broader set of government actions that are "opaque" and put too much onus on delivery companies.

On Monday, FedEx sued the US Commerce Department over export restrictions it said to impose an "impossible burden" on delivery firms and asked a US District Court to block enforcement of the measures.

FedEx says the US rules make shippers liable for packages that could violate the restrictions, even if the shipper has no prior knowledge of the problem.

FedEx reported a net loss of $2 billion for the quarter ending May 31, compared with $1.1 billion in profits in the year-ago period.&nbsp;

The company cited lower international revenues and $316 million in costs associated with a voluntary employee buyout as factors in the loss.

Revenues rose three per cent overall to $17.8 billion.

Shares rose 0.7 per cent to $157.05 in after-hours trading.

FedEx warned Tuesday that its fiscal 2020 earnings outlook remains clouded by trade war uncertainty as the company's chief executive criticized the Trump administration's lurch towards protectionism.

FedEx warned Tuesday that its fiscal 2020 earnings outlook remains clouded by trade war uncertainty as the company's chief executive criticized the Trump administration's lurch towards protectionism. Overall the company is projecting 2020 diluted earnings-per-share to be down by a "mid-single-digit" percentage point compared with the 2019 level. FedEx expects higher operating income in fiscal 2020 from its domestic package and freight shipping services as growing e-commerce activity fuels higher revenues. But operating income is expected to be dented at FedEx Express, its international shipping division, in part because of trade uncertainty. "We've been very disappointed over the last few years with the assumptions that we made on the growth of international trade, particularly with the Trump administration," Chief Executive Fred Smith said on a conference call with financial analysts. "The United States policy since 1934... was to expand international trade and now we have a huge dispute with China where the US has basically become protectionist, defined as 'I'll make everything I need in my own borders.'" Smith, long an outspoken advocate of free trade, also took issue with China's policy on trade, which he described as "mercantilist." US President Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 gathering in Japan later this week, an occasion that investors are hoping will bring the two countries closer to an agreement after months of tariffs, countermeasures and threats. Smith said the company remained committed to operating in China and "completely dedicated" to comply with Chinese laws. He said the company has experienced more audits "to some degree" at its Guangzhou hub in the wake of the US-China dispute. FedEx again apologized over delivery problems involving Chinese telecommunications giant Huawei following a US crackdown on the company that Trump has linked to the US-China trade war. Smith said the company's newly-filed lawsuit against the Commerce Department over export restrictions was not directly related to the Huawei case but was due to a broader set of government actions that are "opaque" and put too much onus on delivery companies. On Monday, FedEx sued the US Commerce Department over export restrictions it said to impose an "impossible burden" on delivery firms and asked a US District Court to block enforcement of the measures. FedEx says the US rules make shippers liable for packages that could violate the restrictions, even if the shipper has no prior knowledge of the problem. FedEx reported a net loss of $2 billion for the quarter ending May 31, compared with $1.1 billion in profits in the year-ago period. The company cited lower international revenues and $316 million in costs associated with a voluntary employee buyout as factors in the loss. Revenues rose three per cent overall to $17.8 billion. Shares rose 0.7 per cent to $157.05 in after-hours trading.

FedEx offers cautious 2020 outlook as CEO slams United States, China on trade

<a href="https://www.wionews.com/world/us-hopes-to-re-launch-china-trade-talks-will-not-accept-conditions-on-tariffs-230453">US hopes to re-launch China trade talks, will not accept conditions on tariffs</a>

The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday.

<a href="https://www.wionews.com/india-news/us-secretary-of-state-of-state-mike-pompeo-to-meet-pm-modi-external-affairs-minister-s-jaishankar-today-230463">US Secretary of State of State Mike Pompeo to meet PM Modi, External Affairs Minister S Jaishankar today &nbsp;</a>

US Secretary of State Mike Pompeo will be meeting Prime Minister Narendra Modi in New Delhi today.&nbsp;

His meeting with PM Modi is scheduled to begin at 10 am followed by a meet with External Affairs Minister S Jaishankar at 12 pm.&nbsp;

<a href="https://www.wionews.com/world/us-border-chief-john-sanders-quits-amid-outcry-over-child-detainees-230455">US border chief John Sanders quits amid outcry over child detainees</a>

The acting head of the US Customs and Border Protection agency announced his resignation on Tuesday amid a public outcry over alarming detention conditions of migrant children in Texas.

<a href="https://www.wionews.com/world/robert-muller-to-testify-before-house-committees-on-us-russia-probe-in-july-congress-230456">Robert Muller to testify before House committees on US-Russia probe in July: Congress</a>

Former US special counsel Robert Mueller has agreed to testify in public on July 17 about his report into Russian interference in the 2016 presidential election, the House Judiciary and Intelligence Committees said Tuesday.

<a href="https://www.wionews.com/world/robots-to-take-20-million-jobs-worsening-inequality-study-230459">Robots to take 20 million jobs, worsening inequality: Study</a>

Robots are expected to take over some 20 million manufacturing jobs worldwide by 2030, extending a trend of worsening social inequality while boosting overall economic output, a new study shows.

&nbsp;

US hopes to re-launch China trade talks, will not accept conditions on tariffs The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday.

US hopes to re-launch China trade talks, will not accept conditions on tariffs The United States hopes to re-launch trade talks with China after President Donald Trump and President Xi Jinping meet in Japan on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday. US Secretary of State of State Mike Pompeo to meet PM Modi, External Affairs Minister S Jaishankar today US Secretary of State Mike Pompeo will be meeting Prime Minister Narendra Modi in New Delhi today. His meeting with PM Modi is scheduled to begin at 10 am followed by a meet with External Affairs Minister S Jaishankar at 12 pm. US border chief John Sanders quits amid outcry over child detainees The acting head of the US Customs and Border Protection agency announced his resignation on Tuesday amid a public outcry over alarming detention conditions of migrant children in Texas. Robert Muller to testify before House committees on US-Russia probe in July: Congress Former US special counsel Robert Mueller has agreed to testify in public on July 17 about his report into Russian interference in the 2016 presidential election, the House Judiciary and Intelligence Committees said Tuesday. Robots to take 20 million jobs, worsening inequality: Study Robots are expected to take over some 20 million manufacturing jobs worldwide by 2030, extending a trend of worsening social inequality while boosting overall economic output, a new study shows.

News brief: Big stories of the day

Lawyers for a senior executive at Chinese tech giant <a href="https://www.wionews.com/business-economy/huawei-ceo-says-underestimated-impact-of-us-ban-sees-revenue-dip-227902">Huawei</a> asked Canada's justice minister on Monday to quash extradition proceedings against Meng Wanzhou and for her to be released.

The court proceedings are scheduled to start on January 20. Meng is currently out on bail.

The United States wants to put Meng on trial for fraud for allegedly violating Iran sanctions and lying about it to US banks -- accusations that her lawyers dispute.

A copy of the letter to Justice Minister David Lametti was not made public.

But in a press release announcing the letter Meng's lawyers urged Lametti to "withdraw the proceedings because the extradition proceedings are without merit and cessation of the proceedings would be in the best interests of Canada's national interests."

They argue that the case is "palpably" political and "simply extraordinary" from legal, jurisdictional and foreign policy perspectives.

"In our view, Canada is at cross-roads respecting the United States' request that Canada extradite Ms&nbsp;Meng, for conduct that could not be an offence in Canada and which is at odds with Canadian values and established foreign policy regarding Iran," they said.

Under Canadian law, the justice minister can intervene in extradition cases.

Canada's relations with China have soured over Meng's arrest on a US warrant in December 2018 during a flight stopover in Vancouver.

In a move widely seen as retaliation and described by some observers as "hostage diplomacy," Beijing detained two Canadians -- former diplomat Michael Kovrig and businessman Michael Spavor -- and blocked Canadian agricultural shipments worth billions of dollars.

It later accused Kovrig of espionage and alleged that Spavor provided him with intelligence.

Former Canadian prime minister Jean Chretien recently urged Prime Minister Justin Trudeau to reject the US extradition request and cancel the case.

Foreign Minister Chrystia Freeland disagreed.

"It would set a very dangerous precedent for Canada to alter its behavior when it comes to honoring an extradition treaty in response to external pressure," she said.

Lametti's office said it would be "inappropriate" to comment while Meng's case is before the courts.

Lawyers for a senior executive at Chinese tech giant Huawei asked Canada's justice minister on Monday to quash extradition proceedings against Meng Wanzhou and for her to be released.

Lawyers for a senior executive at Chinese tech giant Huawei asked Canada's justice minister on Monday to quash extradition proceedings against Meng Wanzhou and for her to be released. The court proceedings are scheduled to start on January 20. Meng is currently out on bail. The United States wants to put Meng on trial for fraud for allegedly violating Iran sanctions and lying about it to US banks -- accusations that her lawyers dispute. A copy of the letter to Justice Minister David Lametti was not made public. But in a press release announcing the letter Meng's lawyers urged Lametti to "withdraw the proceedings because the extradition proceedings are without merit and cessation of the proceedings would be in the best interests of Canada's national interests." They argue that the case is "palpably" political and "simply extraordinary" from legal, jurisdictional and foreign policy perspectives. "In our view, Canada is at cross-roads respecting the United States' request that Canada extradite Ms Meng, for conduct that could not be an offence in Canada and which is at odds with Canadian values and established foreign policy regarding Iran," they said. Under Canadian law, the justice minister can intervene in extradition cases. Canada's relations with China have soured over Meng's arrest on a US warrant in December 2018 during a flight stopover in Vancouver. In a move widely seen as retaliation and described by some observers as "hostage diplomacy," Beijing detained two Canadians -- former diplomat Michael Kovrig and businessman Michael Spavor -- and blocked Canadian agricultural shipments worth billions of dollars. It later accused Kovrig of espionage and alleged that Spavor provided him with intelligence. Former Canadian prime minister Jean Chretien recently urged Prime Minister Justin Trudeau to reject the US extradition request and cancel the case. Foreign Minister Chrystia Freeland disagreed. "It would set a very dangerous precedent for Canada to alter its behavior when it comes to honoring an extradition treaty in response to external pressure," she said. Lametti's office said it would be "inappropriate" to comment while Meng's case is before the courts.

Huawei executive asks Canada to quash US extradition request

The US Commerce Department blacklisted five Chinese tech entities Friday in a new move against Beijing's supercomputing industry likely to raise tensions ahead of a meeting between President Trump and Xi Jinping next week.

The notice targets Sugon -- a prominent Chinese supercomputer manufacturer -- along with three of its microchip subsidiaries and a computing institute owned by the People's Liberation Army.

All of the entities will be effectively barred from obtaining US technology after the government determined they were "acting contrary to the national security or foreign policy interests of the United States."

Trade tensions between the world's top two economies have spilled over into the tech sector in recent months, with Trump's administration moving to essentially ban Chinese tech firm <a href="https://www.wionews.com/world/huawei-phone-sales-plunge-cutbacks-planned-as-us-pressure-bites-227979">Huawei</a> from the huge US market on security grounds.

In May, it added Huawei to an "entity list" of companies barred from receiving US-made components without permission from Washington, though the company was granted a 90-day reprieve.

Facebook and Google have since both announced they will move to cut off Huawei in order to comply with the US sanctions, further isolating the Chinese tech giant.

Beijing has responded with threats to release its own blacklist of "unreliable" foreign companies and individuals that appears aimed at pressuring foreign companies to maintain commercial relations with Huawei.

Earlier this month, Beijing summoned executives from American firms Dell and Microsoft and South Korea's Samsung, among others, to warn them that any moves to ramp down their businesses in China may lead to retaliation, The New York Times reported.

Trump and his Chinese counterpart Xi are set to meet next week on the sidelines of the G20 summit in Japan.

The US Commerce Department blacklisted five Chinese tech entities Friday in a new move against Beijing's supercomputing industry likely to raise tensions ahead of a meeting between President Trump and Xi Jinping next week.

The US Commerce Department blacklisted five Chinese tech entities Friday in a new move against Beijing's supercomputing industry likely to raise tensions ahead of a meeting between President Trump and Xi Jinping next week. The notice targets Sugon -- a prominent Chinese supercomputer manufacturer -- along with three of its microchip subsidiaries and a computing institute owned by the People's Liberation Army. All of the entities will be effectively barred from obtaining US technology after the government determined they were "acting contrary to the national security or foreign policy interests of the United States." Trade tensions between the world's top two economies have spilled over into the tech sector in recent months, with Trump's administration moving to essentially ban Chinese tech firm Huawei from the huge US market on security grounds. In May, it added Huawei to an "entity list" of companies barred from receiving US-made components without permission from Washington, though the company was granted a 90-day reprieve. Facebook and Google have since both announced they will move to cut off Huawei in order to comply with the US sanctions, further isolating the Chinese tech giant. Beijing has responded with threats to release its own blacklist of "unreliable" foreign companies and individuals that appears aimed at pressuring foreign companies to maintain commercial relations with Huawei. Earlier this month, Beijing summoned executives from American firms Dell and Microsoft and South Korea's Samsung, among others, to warn them that any moves to ramp down their businesses in China may lead to retaliation, The New York Times reported. Trump and his Chinese counterpart Xi are set to meet next week on the sidelines of the G20 summit in Japan.

US blocks more Chinese tech firms on national security concerns

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

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

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

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

Harley-Davidson Inc will partner with China's Qianjiang Motorcycle Co to build a new smaller motorcycle than its trademark "big hogs", making good on promises to move more production outside the United States that have angered President Donald Trump.

Trump last year threatened to impose<a href="https://www.wionews.com/world/modi-reduced-tariffs-on-harley-davidson-motorcycles-by-50-i-said-it-was-still-unacceptable-trump-226103"> higher taxes on Harley</a> after it made plans to move production for European customers overseas, part of a longer-term strategy for dealing with lower sales in the US and higher costs because of trade tariffs.

The partnership Harley outlined on Wednesday is aimed both at taking a bigger chunk of China's huge bike and moped market, while also fitting in with a plan to cut costs and source half of all sales outside the United States by 2027.

The new bike would have an engine displacement of 338 cubic centimetres, one of the smallest in the company's 116-year old history, and would be sold in China from the end of 2020.

Harley's existing range of motorcycles are generally far larger and come with high price tags and engine capacities of more than 601 cubic centimetres.

That has made the company a niche seller in Asia's big markets, where lightweight bikes and scooters dominate and left it struggling to win over consumers globally to replace a traditional US customer base which is ageing.

Harley declined to reveal a price range for the new motorbike, but Qianjiang said it would be "affordable" and Harley said it would be introduced elsewhere in Asia after the initial launch in China.

"The international motorcycle market is huge, but Harley-Davidson has not been able to penetrate it with large/expensive bikes," said Craig Kennison, an analyst with brokerage Baird.

"Our recent dealer survey work reinforces the need for Harley-Davidson to add more first-time riders. For many, affordability is an issue."

Harley's sales in China grew 27 per cent in 2018 compared to 2017, and the company has already boosted investment at its Thailand plant to serve that market and avoid additional import duty.

Harley said it had picked Qianjiang, owned by Chinese Volvo brand operator Geely, based on its experience developing upscale smaller motorcycles, supply base and knowledge of emerging markets.

The company said in 2018 that it planned to launch lightweight motorcycles in Asia and electric bikes globally. It expects to launch its first electric motorcycle without the traditional clutch and gear-shift controls later this year.

As part of a plan it calls "More Roads to Harley-Davidson", the company expects to spend $675 million-$825 million over the next four years, cutting costs and generating $5.9 billion-$6.4 billion in revenue in 2022.

Harley-Davidson Inc will partner with China's Qianjiang Motorcycle Co to build a new smaller motorcycle than its trademark "big hogs", making good on promises to move more production outside the United States that have angered President Donald Trump.

Harley-Davidson Inc will partner with China's Qianjiang Motorcycle Co to build a new smaller motorcycle than its trademark "big hogs", making good on promises to move more production outside the United States that have angered President Donald Trump. Trump last year threatened to impose higher taxes on Harley after it made plans to move production for European customers overseas, part of a longer-term strategy for dealing with lower sales in the US and higher costs because of trade tariffs. The partnership Harley outlined on Wednesday is aimed both at taking a bigger chunk of China's huge bike and moped market, while also fitting in with a plan to cut costs and source half of all sales outside the United States by 2027. The new bike would have an engine displacement of 338 cubic centimetres, one of the smallest in the company's 116-year old history, and would be sold in China from the end of 2020. Harley's existing range of motorcycles are generally far larger and come with high price tags and engine capacities of more than 601 cubic centimetres. That has made the company a niche seller in Asia's big markets, where lightweight bikes and scooters dominate and left it struggling to win over consumers globally to replace a traditional US customer base which is ageing. Harley declined to reveal a price range for the new motorbike, but Qianjiang said it would be "affordable" and Harley said it would be introduced elsewhere in Asia after the initial launch in China. "The international motorcycle market is huge, but Harley-Davidson has not been able to penetrate it with large/expensive bikes," said Craig Kennison, an analyst with brokerage Baird. "Our recent dealer survey work reinforces the need for Harley-Davidson to add more first-time riders. For many, affordability is an issue." Harley's sales in China grew 27 per cent in 2018 compared to 2017, and the company has already boosted investment at its Thailand plant to serve that market and avoid additional import duty. Harley said it had picked Qianjiang, owned by Chinese Volvo brand operator Geely, based on its experience developing upscale smaller motorcycles, supply base and knowledge of emerging markets. The company said in 2018 that it planned to launch lightweight motorcycles in Asia and electric bikes globally. It expects to launch its first electric motorcycle without the traditional clutch and gear-shift controls later this year. As part of a plan it calls "More Roads to Harley-Davidson", the company expects to spend $675 million-$825 million over the next four years, cutting costs and generating $5.9 billion-$6.4 billion in revenue in 2022.

Harley-Davidson strikes deal to build smaller bike in China

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

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

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

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

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

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

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

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

China's Huawei Technologies Co Ltd has taken a <a href="https://www.wionews.com/business-economy/huawei-ceo-says-underestimated-impact-of-us-ban-sees-revenue-dip-227902">harder-than-expected hit from a US ban</a>, the company's founder and CEO Ren Zhengfei said and slashed revenue expectations for the year.

Ren's downbeat assessment that the ban will hit revenue by $30 billion, the first time Huawei has quantified the impact of the US action, comes as a surprise after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient.

The United States has put Huawei on an export blacklist citing national security issues, barring US suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval.

The firm has denied its products pose a security threat.

The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM to limit or cease their relationships with the Chinese company.

Huawei had not expected that US determination to "crack" the company would be "so strong and so pervasive", Ren said, speaking at the company's Shenzhen headquarters on Monday.

Two US tech experts, George Gilder and Nicholas Negroponte, also joined the session.

"We did not expect they would attack us on so many aspects," Ren said, adding he expects a revival in business in 2021.

"We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with US components, and cannot even establish a connection with networks that use such components."

Huawei, which turned in a revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next, Ren said. This compares to an initial target for growth in 2019 to between $125 billion and $130 billion depending on foreign exchange fluctuations.

Trade war

The Trump administration slapped sanctions on Huawei at a time when US-China trade talks hit rough waters, prompting assertions from China's leaders about the country's progress in achieving self-sufficiency in the key semiconductor business.

Huawei has also said it could roll out its Hongmeng operating system (OS), which is being tested, within nine months if needed, as its phones face being cut off from updates of Google's Android OS in the wake of the ban.

But industry insiders have remained sceptical that Chinese chip makers can quickly meet the challenge of supplying Huawei's needs and those of other domestic technology firms.

Negroponte, a founder of the Massachusetts Institute of Technology Media Lab, said the US ban was a mistake.

"Our president has already said publicly that he would reconsider Huawei if we can make a trade deal. So clearly that is not about national security," he said.

"It is about something else," Negroponte added.

Huawei's smartphone sales have, however, been hit by the uncertainty. Ren said the firm's international smartphone shipments plunged 40%. While he did not give the time period, a spokesman clarified the CEO was referring to the past month.

Bloomberg reported on Sunday that Huawei was preparing for a 40-60% drop in international smartphone shipments.

The CEO, however, said Huawei will not cut research and development spending despite the expected hit from the ban to the company's finances and would not have large-scale layoffs.

China's Huawei Technologies Co Ltd has taken a harder-than-expected hit from a US ban, the company's founder and CEO Ren Zhengfei said and slashed revenue expectations for the year.

China's Huawei Technologies Co Ltd has taken a harder-than-expected hit from a US ban, the company's founder and CEO Ren Zhengfei said and slashed revenue expectations for the year. Ren's downbeat assessment that the ban will hit revenue by $30 billion, the first time Huawei has quantified the impact of the US action, comes as a surprise after weeks of defiant comments from company executives who maintained Huawei was technologically self-sufficient. The United States has put Huawei on an export blacklist citing national security issues, barring US suppliers from selling to the world's largest telecommunications equipment maker and No.2 maker of smartphones, without special approval. The firm has denied its products pose a security threat. The ban has forced companies, including Alphabet Inc's Google and British chip designer ARM to limit or cease their relationships with the Chinese company. Huawei had not expected that US determination to "crack" the company would be "so strong and so pervasive", Ren said, speaking at the company's Shenzhen headquarters on Monday. Two US tech experts, George Gilder and Nicholas Negroponte, also joined the session. "We did not expect they would attack us on so many aspects," Ren said, adding he expects a revival in business in 2021. "We cannot get components supply, cannot participate in many international organisations, cannot work closely with many universities, cannot use anything with US components, and cannot even establish a connection with networks that use such components." Huawei, which turned in a revenue of 721.2 billion yuan ($104 billion) last year, expects revenue of around $100 billion this year and the next, Ren said. This compares to an initial target for growth in 2019 to between $125 billion and $130 billion depending on foreign exchange fluctuations. Trade war The Trump administration slapped sanctions on Huawei at a time when US-China trade talks hit rough waters, prompting assertions from China's leaders about the country's progress in achieving self-sufficiency in the key semiconductor business. Huawei has also said it could roll out its Hongmeng operating system (OS), which is being tested, within nine months if needed, as its phones face being cut off from updates of Google's Android OS in the wake of the ban. But industry insiders have remained sceptical that Chinese chip makers can quickly meet the challenge of supplying Huawei's needs and those of other domestic technology firms. Negroponte, a founder of the Massachusetts Institute of Technology Media Lab, said the US ban was a mistake. "Our president has already said publicly that he would reconsider Huawei if we can make a trade deal. So clearly that is not about national security," he said. "It is about something else," Negroponte added. Huawei's smartphone sales have, however, been hit by the uncertainty. Ren said the firm's international smartphone shipments plunged 40%. While he did not give the time period, a spokesman clarified the CEO was referring to the past month. Bloomberg reported on Sunday that Huawei was preparing for a 40-60% drop in international smartphone shipments. The CEO, however, said Huawei will not cut research and development spending despite the expected hit from the ban to the company's finances and would not have large-scale layoffs.

US ban hurting more than expected, to wipe $30 billion off revenue: Huawei CEO Ren Zhengfei

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

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

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

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

Beijing on Tuesday slammed what it called "irresponsible and erroneous comments" by Washington about a proposed <a href="https://www.wionews.com/world/hong-kong-businesses-pledge-closures-as-extradition-anger-builds-226173">Hong Kong law</a> that would allow extraditions to mainland China after the United States expressed concerns about the legislation.

"We demand that the US side... be cautious and stop interfering in Hong Kong affairs and <a href="https://www.wionews.com/world/china-backs-hong-kong-extradition-law-opposes-foreign-interference-225947">China's internal affairs</a> in any form," foreign ministry spokesman Geng Shuang said at a regular press briefing.

Earlier in the day, US State Department spokesperson&nbsp;Morgan <a href="https://www.wionews.com/world/changes-in-fugitive-offenders-ordinance-could-undermine-hong-kongs-autonomy-us-226098">Ortagus in media briefing expressed "grave concern"</a> about the Hong Kong government’s proposed amendments to its fugitive offenders ordinance. 
&nbsp; 
She said a peaceful demonstration on Sunday by hundreds of thousands of people in Hong Kong "clearly shows the public’s opposition to the proposed amendments."

"The United States shares the concern of many in Hong Kong that the lack of procedural protection in the proposed amendments could undermine Hong Kong’s autonomy and negatively impact the territory’s longstanding protections of human rights, fundamental freedoms and democratic values," she said.

Ortagus said the United States was concerned that the amendments could damage Hong Kong’s business environment "and subject our citizens residing in or visiting Hong Kong to China’s capricious judicial system."

Watch: Hong Kong's largest protest since 1997

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"Any amendments to the fugitive offenders ordinance should be pursued with great care and in full consultation with a broad range of local and international stakeholders who may be affected by the amendments," she said.

Hong Kong leader Carrie Lam vowed on Monday to push ahead with the amendments despite the city's biggest protest since its handover from British to Chinese rule in 1997.

Britain handed Hong Kong back to China under a "one country, two systems" formula with guarantees that its autonomy and freedoms, including an independent justice system, would be protected.

But many accuse China of extensive meddling in many sectors, denying democratic reforms and squeezing freedoms.

Beijing on Tuesday slammed what it called "irresponsible and erroneous comments" by Washington about a proposed Hong Kong law that would allow extraditions to mainland China after the United States expressed concerns about the legislation.

Beijing on Tuesday slammed what it called "irresponsible and erroneous comments" by Washington about a proposed Hong Kong law that would allow extraditions to mainland China after the United States expressed concerns about the legislation. "We demand that the US side... be cautious and stop interfering in Hong Kong affairs and China's internal affairs in any form," foreign ministry spokesman Geng Shuang said at a regular press briefing. Earlier in the day, US State Department spokesperson Morgan Ortagus in media briefing expressed "grave concern" about the Hong Kong government’s proposed amendments to its fugitive offenders ordinance. She said a peaceful demonstration on Sunday by hundreds of thousands of people in Hong Kong "clearly shows the public’s opposition to the proposed amendments." "The United States shares the concern of many in Hong Kong that the lack of procedural protection in the proposed amendments could undermine Hong Kong’s autonomy and negatively impact the territory’s longstanding protections of human rights, fundamental freedoms and democratic values," she said. Ortagus said the United States was concerned that the amendments could damage Hong Kong’s business environment "and subject our citizens residing in or visiting Hong Kong to China’s capricious judicial system." Watch: Hong Kong's largest protest since 1997 × "Any amendments to the fugitive offenders ordinance should be pursued with great care and in full consultation with a broad range of local and international stakeholders who may be affected by the amendments," she said. Hong Kong leader Carrie Lam vowed on Monday to push ahead with the amendments despite the city's biggest protest since its handover from British to Chinese rule in 1997. Britain handed Hong Kong back to China under a "one country, two systems" formula with guarantees that its autonomy and freedoms, including an independent justice system, would be protected. But many accuse China of extensive meddling in many sectors, denying democratic reforms and squeezing freedoms.

China demands US 'stop interfering' in Hong Kong

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.

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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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

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