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

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

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

China digs in for protracted trade fight with US

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

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

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

Shanahan to meet Chinese counterpart in Singapore: US official

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

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

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

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

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

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

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

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

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

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

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

Fears rise China could weaponise rare earths in US tech war

US-China Stalemate Over Trade Looks Set To Continue.

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

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

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

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

US Ambassador to China visiting Tibet this week

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

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

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

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

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

Gravitas: China dominates tech space, Huawei rules the markets

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

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

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

Facebook breakup could boost China rivals: Sheryl Sandberg

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

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

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

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

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

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

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

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

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

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

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

US to hold China tariffs hearing on June 17

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

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

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

Wall Street shudders as US-China trade war intensifies

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

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

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

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

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

Now China announces tariff on US goods worth $60 Bn

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

By Tony Walker The Chinese have a saying attributed to the philosopher and writer Lao Tzu: every journey begins with a single step. If that is the case, US-China relations have taken a step backwards in negotiators’ failure to advance trade negotiations in the latest round of talks in Washington, which ended unsatisfactorily.

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

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

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

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

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

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

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

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

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

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

President Donald Trump warned China on Saturday that it should strike a <a href="https://www.wionews.com/world/china-outlines-three-disagreements-in-us-trade-talks-217667">trade deal with the United States</a> now, otherwise an agreement would be "far worse for them if it has to be negotiated in my second term."

Washington and Beijing are locked in a trade battle that has seen mounting tariffs, sparking fears the dispute will damage the global economy.

Two days of talks ended Friday with no deal. China's top negotiator said the <a href="https://www.wionews.com/world/china-says-to-hold-more-trade-talks-with-us-in-beijing-217628">two sides would meet again in Beijing</a> at an unspecified date, but warned that China would make no concessions on "important principles."

"I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky &amp; have a Democrat win -- in which case they would continue to rip-off the USA for $500 Billion a year," Trump said in a tweet Saturday.

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I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky &amp; have a Democrat win - in which case they would continue to rip-off the USA for $500 Billion a year....
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1127337211777757191?ref_src=twsrc%5Etfw">May 11, 2019</a></blockquote>
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"The only problem is that they know I am going to win (best economy &amp; employment numbers in US&nbsp;history, &amp; much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!"

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....The only problem is that they know I am going to win (best economy &amp; employment numbers in U.S. history, &amp; much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1127337212813742082?ref_src=twsrc%5Etfw">May 11, 2019</a></blockquote>
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Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on $200 billion worth of Chinese imports, raising them to 25 per cent from 10 per cent.&nbsp;

He then cranked up the heat further, ordering a tariff hike on almost all remaining imports -- $300 billion worth, according to US Trade Representative Robert Lighthizer -- from the world's second-biggest economy.

Those tariffs would not take effect for months, after a period of public comment.

Trump also said Saturday that firms could easily avoid additional costs by producing goods in the United States.&nbsp;

"Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It's very simple!" he tweeted, echoing a similar message he sent Friday -- and even retweeted.

Only a week earlier, the <a href="https://www.wionews.com/world/us-officials-says-china-trade-talks-constructive-217600">United States and China had seemed poised</a> to complete a sweeping agreement.

Washington wants Beijing to tighten its intellectual property protections, cut its subsidies to state-owned firms and reduce the yawning trade deficit; China wants an end to tariffs as part of a "balanced" deal.

While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers -- including Trump supporters -- say the tariffs have hit their bottom line.&nbsp;

As the trade war spread, China imposed $110 billion in duties on farm exports and other US goods.&nbsp;

Republican Senator Chuck Grassley, from the farm state of Iowa, cautiously welcomed the new tariffs but urged negotiators to reach a quick solution "so we can avoid prolonged tariffs, which we know have an impact on the US economy."

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President Donald Trump warned China on Saturday that it should strike a trade deal with the United States now, otherwise an agreement would be "far worse for them if it has to be negotiated in my second term.

President Donald Trump warned China on Saturday that it should strike a trade deal with the United States now, otherwise an agreement would be "far worse for them if it has to be negotiated in my second term." Washington and Beijing are locked in a trade battle that has seen mounting tariffs, sparking fears the dispute will damage the global economy. Two days of talks ended Friday with no deal. China's top negotiator said the two sides would meet again in Beijing at an unspecified date, but warned that China would make no concessions on "important principles." "I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win -- in which case they would continue to rip-off the USA for $500 Billion a year," Trump said in a tweet Saturday. I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win - in which case they would continue to rip-off the USA for $500 Billion a year.... — Donald J. Trump (@realDonaldTrump) May 11, 2019 × "The only problem is that they know I am going to win (best economy & employment numbers in US history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!" ....The only problem is that they know I am going to win (best economy & employment numbers in U.S. history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS! — Donald J. Trump (@realDonaldTrump) May 11, 2019 × Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on $200 billion worth of Chinese imports, raising them to 25 per cent from 10 per cent. He then cranked up the heat further, ordering a tariff hike on almost all remaining imports -- $300 billion worth, according to US Trade Representative Robert Lighthizer -- from the world's second-biggest economy. Those tariffs would not take effect for months, after a period of public comment. Trump also said Saturday that firms could easily avoid additional costs by producing goods in the United States. "Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It's very simple!" he tweeted, echoing a similar message he sent Friday -- and even retweeted. Only a week earlier, the United States and China had seemed poised to complete a sweeping agreement. Washington wants Beijing to tighten its intellectual property protections, cut its subsidies to state-owned firms and reduce the yawning trade deficit; China wants an end to tariffs as part of a "balanced" deal. While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers -- including Trump supporters -- say the tariffs have hit their bottom line. As the trade war spread, China imposed $110 billion in duties on farm exports and other US goods. Republican Senator Chuck Grassley, from the farm state of Iowa, cautiously welcomed the new tariffs but urged negotiators to reach a quick solution "so we can avoid prolonged tariffs, which we know have an impact on the US economy." ×

Trade deal will become far worse if negotiated in my second term: Donald Trump warns China

Will A Potential Trade War Hurt The U.S. More Or China More? A trade war will hurt supply chains, financial markets and as a consequence the global economy. Palki sums up the latest on the ongoing trade dispute between China and the U.S and explains why a trade war is akin to the U.S. shooting the global economy on the boot and asking it to run a marathon

Gravitas: Is a U.S-China trade war around the corner?

In the backdrop of the <a href="https://www.wionews.com/world/tariffs-will-bring-in-far-more-wealth-to-our-country-than-even-phenomenal-deal-of-traditional-kind-donald-trump-217507">US-China trade war</a> and the impasse at the World Trade Organisation (WTO), a WTO ministerial of 22 developing countries will take place in New Delhi next week.&nbsp;

In the meeting, which will take place next week, the countries are expected to deliberate on a common position on unilateral measures being taken by few countries among other issues of interest.&nbsp;

India's commerce ministry in a release said the meeting is being held at a time when the "multilateral rule-based-trading system is facing serious and grave challenges" and in the recent past, "there have been increasing unilateral measures and countermeasures by members".

US president Donald Trump on Friday tweeted on the ongoing trade spat&nbsp;with China. "Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch," he tweeted even as Washington imposed increased tariffs on Chinese goods.

The meet will also discuss the impasse in the Appellate Body of the WTO which could impact the existence of a Dispute Settlement Mechanism at the global body and further impact the position of the WTO as an effective multilateral organisation.

The Appellate Body based in Geneva hears appeals brought by the WTO members and consists of 7 members. The US has blocked the nomination of new members at the body.

Next week's meeting will have 16 developing countries, 6 least developed countries (LDC) along with Director General, WTO Roberto Azevêdo. Countries that will participate in the meeting include Argentina, Bangladesh, Barbados, Benin, Brazil, Central African Republic (CAR), Chad, China, Egypt, Guatemala, Guyana, Indonesia, Jamaica, Kazakhstan, Malawi, Malaysia, Nigeria, Oman, Saudi Arabia, South Africa, Turkey and Uganda.&nbsp;

Bangladesh, Central African Republic and South Africa have confirmed their participation. Vice ministers, senior officials and ambassadors of respective countries will be in attendance during the meeting.&nbsp;

China will be represented by an assistant minister and its envoy. A joint statement is expected by the end of the two day meet.&nbsp;

In the backdrop of the US-China trade war and the impasse at the World Trade Organisation (WTO), a WTO ministerial of 22 developing countries will take place in New Delhi next week.

In the backdrop of the US-China trade war and the impasse at the World Trade Organisation (WTO), a WTO ministerial of 22 developing countries will take place in New Delhi next week. In the meeting, which will take place next week, the countries are expected to deliberate on a common position on unilateral measures being taken by few countries among other issues of interest. India's commerce ministry in a release said the meeting is being held at a time when the "multilateral rule-based-trading system is facing serious and grave challenges" and in the recent past, "there have been increasing unilateral measures and countermeasures by members". US president Donald Trump on Friday tweeted on the ongoing trade spat with China. "Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch," he tweeted even as Washington imposed increased tariffs on Chinese goods. The meet will also discuss the impasse in the Appellate Body of the WTO which could impact the existence of a Dispute Settlement Mechanism at the global body and further impact the position of the WTO as an effective multilateral organisation. The Appellate Body based in Geneva hears appeals brought by the WTO members and consists of 7 members. The US has blocked the nomination of new members at the body. Next week's meeting will have 16 developing countries, 6 least developed countries (LDC) along with Director General, WTO Roberto Azevêdo. Countries that will participate in the meeting include Argentina, Bangladesh, Barbados, Benin, Brazil, Central African Republic (CAR), Chad, China, Egypt, Guatemala, Guyana, Indonesia, Jamaica, Kazakhstan, Malawi, Malaysia, Nigeria, Oman, Saudi Arabia, South Africa, Turkey and Uganda. Bangladesh, Central African Republic and South Africa have confirmed their participation. Vice ministers, senior officials and ambassadors of respective countries will be in attendance during the meeting. China will be represented by an assistant minister and its envoy. A joint statement is expected by the end of the two day meet.

Amid US-China trade war, 22 WTO countries to meet in New Delhi next week

US oil prices rose on Friday on renewed optimism that a trade deal between Washington and Beijing could be struck, as investors have been fearing that a protracted tariff war would harm global economic growth.

Brent crude futures were at $70.85 a barrel at 0021 GMT, up 48 cents, or 0.7 per cent, from their last close. Brent closed little changed in the previous session.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $62.29 per barrel, up 59 cents, or 1 per cent, from their previous settlement. WTI closed the last session down 0.7 percent.

Analysts said oil was drawing support on renewed hopes that a China-US&nbsp;trade deal after US President Donald Trump said he received a "beautiful letter" from Chinese President Xi Jinping.

Trump quoted the letter as saying: "Let's work together let's see if we can get something done."

Still, traders remained on edge as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China at 12:01 a.m. EDT on Friday(0401 GMT on Saturday).

"The outcome of the US-China trade talks remains uncertain," said Alfonso Esparza, Senior Market Analyst at OANDA.

"Global growth forecasts were hit by tariff escalation last year, before a ceasefire and negotiations kicked up a notch."

The trade optimism comes amid efforts by the Organisation of Petroleum Exporting Countries to crimp supply, as well as expectations that demand will rise.

The US&nbsp;Energy Information Administration expects global oil demand to rise by 1.4 million barrels per day (bpd) this year.

US oil prices rose on Friday on renewed optimism that a trade deal between Washington and Beijing could be struck, as investors have been fearing that a protracted tariff war would harm global economic growth.

US oil prices rose on Friday on renewed optimism that a trade deal between Washington and Beijing could be struck, as investors have been fearing that a protracted tariff war would harm global economic growth. Brent crude futures were at $70.85 a barrel at 0021 GMT, up 48 cents, or 0.7 per cent, from their last close. Brent closed little changed in the previous session. US West Texas Intermediate (WTI) crude futures were at $62.29 per barrel, up 59 cents, or 1 per cent, from their previous settlement. WTI closed the last session down 0.7 percent. Analysts said oil was drawing support on renewed hopes that a China-US trade deal after US President Donald Trump said he received a "beautiful letter" from Chinese President Xi Jinping. Trump quoted the letter as saying: "Let's work together let's see if we can get something done." Still, traders remained on edge as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China at 12:01 a.m. EDT on Friday(0401 GMT on Saturday). "The outcome of the US-China trade talks remains uncertain," said Alfonso Esparza, Senior Market Analyst at OANDA. "Global growth forecasts were hit by tariff escalation last year, before a ceasefire and negotiations kicked up a notch." The trade optimism comes amid efforts by the Organisation of Petroleum Exporting Countries to crimp supply, as well as expectations that demand will rise. The US Energy Information Administration expects global oil demand to rise by 1.4 million barrels per day (bpd) this year.

Oil rallies on hopes for US-China trade deal

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