Beijing on Friday accused Washington of<a href="http://www.wionews.com/world/us-indicts-two-chinese-hackers-for-targeting-companies-in-12-countries-185573"> 'fabricating facts' after the US</a> Justice Department indicted two hackers tied to Chinese security services who allegedly targeted companies and agencies in a dozen countries.

We urge the US to "stop smearing the Chinese side on cyber security issues," China's foreign ministry said in a statement, adding that it had lodged an official protest.

China said the US should drop the prosecution "to avoid serious damage to the relations between the two countries".

While making the announcement on hacking, the US Justice Department had said the hackers had targeted managed service providers (MSPs) in several countries. However, it did not name the companies or the countries hit by hacking.

The department said several US agencies were hit including the NASA Goddard Space Center and Jet Propulsion Laboratory, the Department of Energy's Lawrence Berkeley National Laboratory, and the US Navy.

China, however, denied the US indictment asking it to drop the charges.

"US should drop the prosecution to avoid serious damage to the relations between the two countries," the foreign ministry said.

In an announcement earlier, Deputy Attorney General Rod Rosenstein had said: "It is unacceptable that we continue to uncover cybercrime committed by China against America and other nations. That was a commitment they made to members of the international community to the United States to the G 20 and to OPEC," he said, adding, "we want China to cease its illegal cyber activities and honour&nbsp;its commitment to the international community.

The two men identified were Zhu Hua and Zhang Jianguo. They allegedly stole intellectual property and confidential business and technological data, according to the Justice department.

The Justice Department said the two hackers worked for a group called "APT10"&nbsp;which it said was backed by China's ministry of state security.

"We also worked with our counterparts in the NCIS to investigate APT theft of personally identifiable information from more than one hundred thousand US naval service members. We are deeply concerned about American innovation ending up in the wrong hands," FBI director Christopher Wray added.

Britian, a key US ally also sided with the US indictment insisting that the hacking went against the "commitments made to the UK in 2015, and, as part of the G20, not to conduct or support cyber-enabled theft of intellectual property or trade secrets."

Beijing on Friday accused Washington of 'fabricating facts' after the US Justice Department indicted two hackers tied to Chinese security services who allegedly targeted companies and agencies in a dozen countries.

Beijing on Friday accused Washington of 'fabricating facts' after the US Justice Department indicted two hackers tied to Chinese security services who allegedly targeted companies and agencies in a dozen countries. We urge the US to "stop smearing the Chinese side on cyber security issues," China's foreign ministry said in a statement, adding that it had lodged an official protest. China said the US should drop the prosecution "to avoid serious damage to the relations between the two countries". While making the announcement on hacking, the US Justice Department had said the hackers had targeted managed service providers (MSPs) in several countries. However, it did not name the companies or the countries hit by hacking. The department said several US agencies were hit including the NASA Goddard Space Center and Jet Propulsion Laboratory, the Department of Energy's Lawrence Berkeley National Laboratory, and the US Navy. China, however, denied the US indictment asking it to drop the charges. "US should drop the prosecution to avoid serious damage to the relations between the two countries," the foreign ministry said. In an announcement earlier, Deputy Attorney General Rod Rosenstein had said: "It is unacceptable that we continue to uncover cybercrime committed by China against America and other nations. That was a commitment they made to members of the international community to the United States to the G 20 and to OPEC," he said, adding, "we want China to cease its illegal cyber activities and honour its commitment to the international community. The two men identified were Zhu Hua and Zhang Jianguo. They allegedly stole intellectual property and confidential business and technological data, according to the Justice department. The Justice Department said the two hackers worked for a group called "APT10" which it said was backed by China's ministry of state security. "We also worked with our counterparts in the NCIS to investigate APT theft of personally identifiable information from more than one hundred thousand US naval service members. We are deeply concerned about American innovation ending up in the wrong hands," FBI director Christopher Wray added. Britian, a key US ally also sided with the US indictment insisting that the hacking went against the "commitments made to the UK in 2015, and, as part of the G20, not to conduct or support cyber-enabled theft of intellectual property or trade secrets."

US fabricating facts on hacking, should stop smearing China on cyber security: Foreign ministry

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week.

However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China.

A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth.

A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan.&nbsp;&nbsp; &nbsp;

"We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA.

The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019.

In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities.

"The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added.&nbsp; 
"And both events have a smoothing effect on risk sentiment."&nbsp;

In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent.

Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent.

Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty.

Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!"&nbsp;

That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts.

While a full-blown deal is some way off, the developments have provided some hope to dealers.

On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her

Brexit agreement, which a majority of lawmakers in Westminster oppose.

Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics.

However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing. While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China. A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth. A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan. "We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA. The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019. In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities. "The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added. "And both events have a smoothing effect on risk sentiment." In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent. Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent. Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty. Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts. While a full-blown deal is some way off, the developments have provided some hope to dealers. On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her Brexit agreement, which a majority of lawmakers in Westminster oppose. Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics. However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly up ahead of key meetings in China and US

By John J Stremlau

US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington. He began positively, declaring that, "Lasting stability, prosperity, independence and security on the African continent are in the national security interest of the United States."

But he then went on to ignore Africa’s own efforts to address these broad challenges, including its multilateral initiatives. Instead, Bolton’s announcement was replete with rhetoric reminiscent of the Cold War.

The new strategy makes one thing clear: What really matters to Trump is not Africa but containing and countering China.

The reaction from an African perspective is likely bemusement rather than surprise. Trump has shown little interest or empathy towards Africa. And much enmity toward China. His Africa strategy ignores two decades of complex – but generally positive – reactions across sub-Saharan Africa to China becoming the region’s biggest trading partner and a major source of aid and investment.

Previous US administrations generally welcomed Chinese engagement in Africa. Bolton, however, alleged that " China uses bribes, opaque agreements, and the strategic use of debt to hold states in Africa captive to Beijing’s wishes and demands."

But does it need to be this way? I would argue not. Africa offers China and America an opportunity to demonstrate to the world – and to each other – that their competition can be constructive with Africa playing a moderating influence by brokering an agreed trilateral agenda.

We need to explore ways to advance cooperation between Africa, China and the US as a confidence-building measure in relations between the US and China. This would obviously need to be designed for the primary benefit of African partners.

Testing trilateralism

Collaborative projects that involve the US and China, with Africa in the forefront, have been the focus of a Carter Centre project since 2014. The centre’s many successful programs in Africa, especially public health, have generated high-level trilateral policy interest. Since the Trump administration took over, these conversations have excluded his senior advisors. Nevertheless, work has continued. This has included recent developments which suggest headway is being made.

In early December the South African Institute of International Affairs hosted the troika that leads this project. The troika was represented by Seyoum Mesfin, Ethiopia’s former and longest-serving foreign minister, an ambassador to China, and regional mediator in Sudan; Zhong Jianhua, formerly China’s Special Representative on African affairs and to the Sudan conflicts; and Donald Booth, a former US ambassador to Liberia, Zambia, Ethiopia and special envoy to Sudan/South Sudan.

Three dozen African, Chinese and US scholars, as well as policy experts, contributed their analyses of previous and possible future areas for trilateral cooperation. They drew on some recent examples. These included efforts to combat piracy off the Horn of Africa and Gulf of Guinea as well as jointly developing a university campus in Liberia. Other projects have involved coordinated mediation between Sudan and South Sudan and mutually reinforcing actions to deal with the Ebola epidemic in West Africa.

Challenges ahead

Several priority areas for future tri-lateral cooperation were identified.

One was the recently constructed headquarters for the Centre for Disease Control and Prevention in Addis Ababa. Funded by China, the next priority for trilateral cooperation is to ensure the centre is equipped to provide better early warning and response to threats like Ebola.

Another priority area is expanding economic aid, trade and investment. This could be done through trilateral projects funded under China’s “Belt and Road” initiative and the US Build Act. The act was approved in October by a large bi-partisan majority of the US Congress.

A related issue is the huge loss of vital tax revenue to African governments due to huge “illicit financial flows”. These are estimated to exceed annual inflows of foreign assistance. The project will seek ways to encourage US and China to support the work of a panel set up by African Union and United Nations Economic Commission for Africa.

Two other broad areas for potential trilateral cooperation are sustainable agriculture and energy. Two initiatives started by the Obama Administration, with the support of Congress, have become popular in Africa. These are the “Feed the Future” and “Power Africa”.

Trump has long wanted to cut both. But his negative attitude isn’t shared by the US Congress, and perhaps even key members of his administration. Assistant Secretary of State for Africa, Tibor Nagy, summarised US-Africa policy before the House Foreign Affairs Committee on the same day Trump approved the new Africa strategy. Nagy’s comments reflected a different mindset. He spoke positively about the two Obama initiatives. He also didn’t seem alarmed by China’s growing presence.

At a time when many in Africa are debating how to build capable states without the undesirable aspects of either America’s “decadent” democracy or China’s “responsive” authoritarianism, engaging both should yield important insights for advancing collective self-reliance and development.

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/trumps-africa-strategy-should-have-cast-china-as-a-regional-partner-not-a-global-adversary-108901">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

By John J Stremlau US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington.

By John J Stremlau US President Donald Trump has finally approved a “New Africa Strategy”. His national security adviser, John Bolton, described the contents on December 13 at the conservative Heritage Foundation in Washington. He began positively, declaring that, "Lasting stability, prosperity, independence and security on the African continent are in the national security interest of the United States." But he then went on to ignore Africa’s own efforts to address these broad challenges, including its multilateral initiatives. Instead, Bolton’s announcement was replete with rhetoric reminiscent of the Cold War. The new strategy makes one thing clear: What really matters to Trump is not Africa but containing and countering China. The reaction from an African perspective is likely bemusement rather than surprise. Trump has shown little interest or empathy towards Africa. And much enmity toward China. His Africa strategy ignores two decades of complex – but generally positive – reactions across sub-Saharan Africa to China becoming the region’s biggest trading partner and a major source of aid and investment. Previous US administrations generally welcomed Chinese engagement in Africa. Bolton, however, alleged that " China uses bribes, opaque agreements, and the strategic use of debt to hold states in Africa captive to Beijing’s wishes and demands." But does it need to be this way? I would argue not. Africa offers China and America an opportunity to demonstrate to the world – and to each other – that their competition can be constructive with Africa playing a moderating influence by brokering an agreed trilateral agenda. We need to explore ways to advance cooperation between Africa, China and the US as a confidence-building measure in relations between the US and China. This would obviously need to be designed for the primary benefit of African partners. Testing trilateralism Collaborative projects that involve the US and China, with Africa in the forefront, have been the focus of a Carter Centre project since 2014. The centre’s many successful programs in Africa, especially public health, have generated high-level trilateral policy interest. Since the Trump administration took over, these conversations have excluded his senior advisors. Nevertheless, work has continued. This has included recent developments which suggest headway is being made. In early December the South African Institute of International Affairs hosted the troika that leads this project. The troika was represented by Seyoum Mesfin, Ethiopia’s former and longest-serving foreign minister, an ambassador to China, and regional mediator in Sudan; Zhong Jianhua, formerly China’s Special Representative on African affairs and to the Sudan conflicts; and Donald Booth, a former US ambassador to Liberia, Zambia, Ethiopia and special envoy to Sudan/South Sudan. Three dozen African, Chinese and US scholars, as well as policy experts, contributed their analyses of previous and possible future areas for trilateral cooperation. They drew on some recent examples. These included efforts to combat piracy off the Horn of Africa and Gulf of Guinea as well as jointly developing a university campus in Liberia. Other projects have involved coordinated mediation between Sudan and South Sudan and mutually reinforcing actions to deal with the Ebola epidemic in West Africa. Challenges ahead Several priority areas for future tri-lateral cooperation were identified. One was the recently constructed headquarters for the Centre for Disease Control and Prevention in Addis Ababa. Funded by China, the next priority for trilateral cooperation is to ensure the centre is equipped to provide better early warning and response to threats like Ebola. Another priority area is expanding economic aid, trade and investment. This could be done through trilateral projects funded under China’s “Belt and Road” initiative and the US Build Act. The act was approved in October by a large bi-partisan majority of the US Congress. A related issue is the huge loss of vital tax revenue to African governments due to huge “illicit financial flows”. These are estimated to exceed annual inflows of foreign assistance. The project will seek ways to encourage US and China to support the work of a panel set up by African Union and United Nations Economic Commission for Africa. Two other broad areas for potential trilateral cooperation are sustainable agriculture and energy. Two initiatives started by the Obama Administration, with the support of Congress, have become popular in Africa. These are the “Feed the Future” and “Power Africa”. Trump has long wanted to cut both. But his negative attitude isn’t shared by the US Congress, and perhaps even key members of his administration. Assistant Secretary of State for Africa, Tibor Nagy, summarised US-Africa policy before the House Foreign Affairs Committee on the same day Trump approved the new Africa strategy. Nagy’s comments reflected a different mindset. He spoke positively about the two Obama initiatives. He also didn’t seem alarmed by China’s growing presence. At a time when many in Africa are debating how to build capable states without the undesirable aspects of either America’s “decadent” democracy or China’s “responsive” authoritarianism, engaging both should yield important insights for advancing collective self-reliance and development. (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Donald Trump’s Africa strategy should have cast China as a regional partner, not a global adversary

Canada's ambassador met in Beijing Friday with a detained former diplomat for the first time since he was arrested in China amid sharpening East-West tensions over trade and other issues.

Michael Kovrig, the former diplomat, and a second Canadian, Michael Spavor, were taken into custody earlier in the week after a <a href="http://www.wionews.com/world/do-not-politicise-extradition-cases-canada-warns-us-183654">top Chinese tech executive was arrested</a> in Vancouver at the request of the United States.

Canada's foreign ministry said its ambassador to Beijing, John McCallum, was granted consular access to Kovrig and is pressing for access to Spavor. Speaking to The Canadian Press, Prime Minister Justin Trudeau predicted that access would take place "shortly."

"We are being absolutely clear on standing up for our citizens who have been detained, trying to figure out why, trying to work with China to demonstrate that this not acceptable," he told Citytv in Toronto.

Meanwhile, in Washington, Canada's foreign and defence ministers held talks with their US counterparts on the row.

The Canadians were arrested for what China has said is suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage.

But the detentions are widely believed to be retaliation for Canada's arrest December 1 of Meng Wanzhou, the chief financial officer of Chinese telecom giant Huawei.

Meng was arrested while changing planes in Vancouver, outraging China and sparking a diplomatic standoff between the North American allies and Beijing.

"This is one of the situations you get in when the two largest economies in the world, China and the United States, start picking a fight with each other," Trudeau said.&nbsp;

"The escalating trade war between them is going to have all sorts of unintended consequences for Canada, potentially the entire global economy. We're very worried about that."

The United States has accused her of lying to bankers about the use of a covert subsidiary to sell to Iran in breach of sanctions. If convicted, she faces more than 30 years in prison.

On Tuesday, a Canadian judge ordered Meng's release on Can$10 million ($7.5 million US) bail, pending a US extradition hearing.

Visit shelved

Canadian Tourism Minister Melanie Joly, meanwhile, shelved a trip to China next week to promote tourism.

Since Beijing approved Canada as a tourist destination for its citizens in 2010, the number of Chinese tourists visiting Canada has risen by 20 percent per year to almost 700,000 in 2017.

Ottawa had hoped to double the figure by 2021, opening seven new visa application offices in China this year to facilitate the processing of travel documents. But those targets are now in doubt amid a public backlash in China.

Kovrig, who works for the International Crisis Group (ICG) think tank, was being investigated by the Beijing bureau of state security, while the agency's office in northeastern Liaoning province was handling the probe into Spavor, Lu said.

Spavor is a China-based business consultant who facilitates trips to North Korea, met with its leader Kim Jong Un and arranged some of retired NBA star Dennis Rodman's trips to the country.

China's foreign ministry said ICG was not registered in China and its employees would be "in violation" of the law if they engage in activities in the country.

ICG closed its office in the Chinese capital after Beijing passed a law on NGOs, which came into force in 2017, to better control the activities on its soil of foreign organizations.

Kovrig was based in Hong Kong for ICG, working on foreign policy and security issues in the region, particularly on the Korean Peninsula.

Canada's ambassador met in Beijing Friday with a detained former diplomat for the first time since he was arrested in China amid sharpening East-West tensions over trade and other issues.

Canada's ambassador met in Beijing Friday with a detained former diplomat for the first time since he was arrested in China amid sharpening East-West tensions over trade and other issues. Michael Kovrig, the former diplomat, and a second Canadian, Michael Spavor, were taken into custody earlier in the week after a top Chinese tech executive was arrested in Vancouver at the request of the United States. Canada's foreign ministry said its ambassador to Beijing, John McCallum, was granted consular access to Kovrig and is pressing for access to Spavor. Speaking to The Canadian Press, Prime Minister Justin Trudeau predicted that access would take place "shortly." "We are being absolutely clear on standing up for our citizens who have been detained, trying to figure out why, trying to work with China to demonstrate that this not acceptable," he told Citytv in Toronto. Meanwhile, in Washington, Canada's foreign and defence ministers held talks with their US counterparts on the row. The Canadians were arrested for what China has said is suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage. But the detentions are widely believed to be retaliation for Canada's arrest December 1 of Meng Wanzhou, the chief financial officer of Chinese telecom giant Huawei. Meng was arrested while changing planes in Vancouver, outraging China and sparking a diplomatic standoff between the North American allies and Beijing. "This is one of the situations you get in when the two largest economies in the world, China and the United States, start picking a fight with each other," Trudeau said. "The escalating trade war between them is going to have all sorts of unintended consequences for Canada, potentially the entire global economy. We're very worried about that." The United States has accused her of lying to bankers about the use of a covert subsidiary to sell to Iran in breach of sanctions. If convicted, she faces more than 30 years in prison. On Tuesday, a Canadian judge ordered Meng's release on Can$10 million ($7.5 million US) bail, pending a US extradition hearing. Visit shelved Canadian Tourism Minister Melanie Joly, meanwhile, shelved a trip to China next week to promote tourism. Since Beijing approved Canada as a tourist destination for its citizens in 2010, the number of Chinese tourists visiting Canada has risen by 20 percent per year to almost 700,000 in 2017. Ottawa had hoped to double the figure by 2021, opening seven new visa application offices in China this year to facilitate the processing of travel documents. But those targets are now in doubt amid a public backlash in China. Kovrig, who works for the International Crisis Group (ICG) think tank, was being investigated by the Beijing bureau of state security, while the agency's office in northeastern Liaoning province was handling the probe into Spavor, Lu said. Spavor is a China-based business consultant who facilitates trips to North Korea, met with its leader Kim Jong Un and arranged some of retired NBA star Dennis Rodman's trips to the country. China's foreign ministry said ICG was not registered in China and its employees would be "in violation" of the law if they engage in activities in the country. ICG closed its office in the Chinese capital after Beijing passed a law on NGOs, which came into force in 2017, to better control the activities on its soil of foreign organizations. Kovrig was based in Hong Kong for ICG, working on foreign policy and security issues in the region, particularly on the Korean Peninsula.

Canada granted consular access to ex-diplomat held by China: Official

President Donald Trump on Friday predicted a major <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">US-China trade deal</a> in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies.

"China wants to make a big and very comprehensive deal. It could happen, and rather soon!" Trump tweeted.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1073617541476569088?ref_src=twsrc%5Etfw">December 14, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

His optimism followed China's decision earlier Friday to back off from extra punitive duties that had been imposed this summer on US-made cars and auto parts.

The move was seen as the first concrete result of the US leader's<a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930"> G20 talks with his counterpart Xi Jinping </a>earlier this month.

Those tariffs now fall from 40 per cent to 15 per cent -- the same rate imposed on all foreign-made vehicles. The relief will last for three months from January 1.

"Suspension of the tariffs is a concrete measure to implement the consensus reached by the two heads of state," said the announcement by the State Council's Tariff Commission Office, noting it applied to 211 product codes.

Trump said the climbdown showed that China had been forced to blink in their on-off spat, after months of heavy <a href="http://www.wionews.com/world/china-envoy-warns-of-dire-consequences-if-us-hardliners-hold-sway-179861">US tariffs</a> on Chinese imports.

"China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. US&nbsp;is doing very well," Trump said.

Beijing's move also demonstrated that talks to resolve the trade conflict have survived the tension sparked by Canada's arrest of a top Chinese telecom executive at the behest of US law enforcement.

Meng Wanzhou, chief financial officer of telecoms behemoth Huawei, has been released on bail in Canada. China wants her unconditional release. Washington wants her extradited for allegedly violating US sanctions on Iran.

China apparently retaliated by detaining two Canadians on suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage.

Washington insists that the case is driven purely by the US Justice Department, rather than anything to do with the trade dispute, but Trump has muddied the waters by suggesting he might intervene if that would help the trade talks.

Tit for tat

Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires on December 1 to a 90-day truce while they tried to find a solution to the escalating trade dispute.

Confusion and unease over what agreement the two sides reached in Argentina has roiled stock markets.

But trade negotiators talked on the phone this week to discuss a timetable for talks. Friday's announcement in Beijing also confirms what Trump said on December 2 about China acting on the auto tariffs.

"We hope that both sides will -- in accordance with the consensus reached by the two heads of state, on the premise of mutual respect, mutual equality, faithfulness, words and actions -- intensify consultations in the direction of cancelling all of the extra tariff increases," the State Council's statement said.

Stand to benefit

The tariff suspension will benefit US carmakers like Tesla and Ford which have seen China sales tumble.

"It is essential that governments work together to advance balanced and fair trade. We look forward to learning more," a spokesman for Ford said after Trump announced China would cut car tariffs.

International automakers Daimler, maker of the Mercedes-Benz, and BMW have also exported American-made SUVs to China.

US exports to China fell 25 per cent on-year in November as the higher tariffs on hundreds of American goods hurt demand.

In another signal that China may move to satisfy Trump, the country's top legislature announced Friday that it would hold a session from December 23-29 to discuss legislation on foreign investment and draft revisions to the patent law.

The United States has long complained of a lack of fair access for foreign companies in China and rampant theft of intellectual property.

For now, the National People's Congress Standing Committee has not provided details about the draft legislation.

Maintaining and resolving the trade truce could help stabilize sentiment in China, where confidence in the economy has been hurt by the trade frictions with Washington.

Earlier on Friday, economic data showed Chinese consumer spending grew at its slowest pace in 15 years and factories eased up in November, raising the prospect that Beijing could turn to fresh stimulus measures to help the sputtering economy.

China's top officials on the Politburo said in a statement Thursday that major economic indicators will be kept within a reasonable range next year.

"The meeting also signalled further market opening," economists at Trivium Research wrote in a newsletter.

President Donald Trump on Friday predicted a major US-China trade deal in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies.

President Donald Trump on Friday predicted a major US-China trade deal in the near future, saying that Beijing's negotiating position had been weakened by the impact of the tariffs war between the world's top two economies. "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" Trump tweeted. China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. U.S. is doing very well. China wants to make a big and very comprehensive deal. It could happen, and rather soon! — Donald J. Trump (@realDonaldTrump) December 14, 2018 × His optimism followed China's decision earlier Friday to back off from extra punitive duties that had been imposed this summer on US-made cars and auto parts. The move was seen as the first concrete result of the US leader's G20 talks with his counterpart Xi Jinping earlier this month. Those tariffs now fall from 40 per cent to 15 per cent -- the same rate imposed on all foreign-made vehicles. The relief will last for three months from January 1. "Suspension of the tariffs is a concrete measure to implement the consensus reached by the two heads of state," said the announcement by the State Council's Tariff Commission Office, noting it applied to 211 product codes. Trump said the climbdown showed that China had been forced to blink in their on-off spat, after months of heavy US tariffs on Chinese imports. "China just announced that their economy is growing much slower than anticipated because of our Trade War with them. They have just suspended U.S. Tariff Hikes. US is doing very well," Trump said. Beijing's move also demonstrated that talks to resolve the trade conflict have survived the tension sparked by Canada's arrest of a top Chinese telecom executive at the behest of US law enforcement. Meng Wanzhou, chief financial officer of telecoms behemoth Huawei, has been released on bail in Canada. China wants her unconditional release. Washington wants her extradited for allegedly violating US sanctions on Iran. China apparently retaliated by detaining two Canadians on suspicion of "harm to national security" -- a phrase often used by Beijing when alleging espionage. Washington insists that the case is driven purely by the US Justice Department, rather than anything to do with the trade dispute, but Trump has muddied the waters by suggesting he might intervene if that would help the trade talks. Tit for tat Trump and Chinese leader Xi Jinping agreed on the sidelines of the G20 summit in Buenos Aires on December 1 to a 90-day truce while they tried to find a solution to the escalating trade dispute. Confusion and unease over what agreement the two sides reached in Argentina has roiled stock markets. But trade negotiators talked on the phone this week to discuss a timetable for talks. Friday's announcement in Beijing also confirms what Trump said on December 2 about China acting on the auto tariffs. "We hope that both sides will -- in accordance with the consensus reached by the two heads of state, on the premise of mutual respect, mutual equality, faithfulness, words and actions -- intensify consultations in the direction of cancelling all of the extra tariff increases," the State Council's statement said. Stand to benefit The tariff suspension will benefit US carmakers like Tesla and Ford which have seen China sales tumble. "It is essential that governments work together to advance balanced and fair trade. We look forward to learning more," a spokesman for Ford said after Trump announced China would cut car tariffs. International automakers Daimler, maker of the Mercedes-Benz, and BMW have also exported American-made SUVs to China. US exports to China fell 25 per cent on-year in November as the higher tariffs on hundreds of American goods hurt demand. In another signal that China may move to satisfy Trump, the country's top legislature announced Friday that it would hold a session from December 23-29 to discuss legislation on foreign investment and draft revisions to the patent law. The United States has long complained of a lack of fair access for foreign companies in China and rampant theft of intellectual property. For now, the National People's Congress Standing Committee has not provided details about the draft legislation. Maintaining and resolving the trade truce could help stabilize sentiment in China, where confidence in the economy has been hurt by the trade frictions with Washington. Earlier on Friday, economic data showed Chinese consumer spending grew at its slowest pace in 15 years and factories eased up in November, raising the prospect that Beijing could turn to fresh stimulus measures to help the sputtering economy. China's top officials on the Politburo said in a statement Thursday that major economic indicators will be kept within a reasonable range next year. "The meeting also signalled further market opening," economists at Trivium Research wrote in a newsletter.

'Big' China-US trade deal could happen rather soon : Trump

US-China trade negotiations need to reach a successful end by March 1 or new tariffs will be imposed, US Trade Representative Robert Lighthizer said on Sunday, clarifying there is a "hard deadline" after a week of confusion among administration advisers.

Global markets are jittery over prospects of a collision between the world's two largest economic powers over China's huge trade surplus with the United States and U.S. claims that China is stealing intellectual property and technology.

"As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March," Lighthizer said on the CBS show "Face the Nation," referring to President Donald Trump's recent decision to delay new tariffs while talks proceed.

"The way this is set up is that at the end of 90 days, these tariffs will be raised," said Lighthizer, who has been tapped to lead the talks and appeared to tamp down expectations that the negotiation period could be extended.

In Argentina last weekend, Trump and Chinese President Xi Jinping agreed to a truce that delayed the planned Jan. 1 US hike of tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal.

However, the arrest of a top executive at China's Huawei Technologies Co Ltd's has roiled global markets amid fears that it could further inflame the China-US trade row.

US-China trade negotiations need to reach a successful end by March 1 or new tariffs will be imposed, US Trade Representative Robert Lighthizer said on Sunday, clarifying there is a "hard deadline" after a week of confusion among administration advisers.

US-China trade negotiations need to reach a successful end by March 1 or new tariffs will be imposed, US Trade Representative Robert Lighthizer said on Sunday, clarifying there is a "hard deadline" after a week of confusion among administration advisers. Global markets are jittery over prospects of a collision between the world's two largest economic powers over China's huge trade surplus with the United States and U.S. claims that China is stealing intellectual property and technology. "As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March," Lighthizer said on the CBS show "Face the Nation," referring to President Donald Trump's recent decision to delay new tariffs while talks proceed. "The way this is set up is that at the end of 90 days, these tariffs will be raised," said Lighthizer, who has been tapped to lead the talks and appeared to tamp down expectations that the negotiation period could be extended. In Argentina last weekend, Trump and Chinese President Xi Jinping agreed to a truce that delayed the planned Jan. 1 US hike of tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal. However, the arrest of a top executive at China's Huawei Technologies Co Ltd's has roiled global markets amid fears that it could further inflame the China-US trade row.

Trade deal must be reached by March 1 or new tariffs will be imposed: US to China

The G20 Summit 2018, besides its normal proceedings, will be remembered for a large number of bilateral and trilateral meetings on the sidelines, which seem to be even more significant than the main purpose of the meet.&nbsp;

There were some high profile bilateral meetings like US-China in the context of trade war. Meanwhile, US–Russia meeting (scheduling of which saw many flip-flops) finally could not take place due to Ukraine crisis&nbsp;and ongoing investigations into alleged Russia's involvement in the US elections.&nbsp;

The two trilateral meetings involving US-Japan-India and China-Russia-India were also very significant because of the peculiarity of Indian position in both the meetings. One of the reasons for this phenomenon is that the world has become more interconnected, hence even bilateral relations between global powers impact the world directly or indirectly.&nbsp;

For an instance, when a large number of countries including US allies, strategic and trade partners joined The Asian Infrastructure Investment Bank (AIIB), against the wishes of the US, it was quite evident that a time has come when many countries will like to have alternate sources of funding other than west dominated IMF or Japan-led Asian Development Bank (ADB). Similarly, when China exhibited aggressive design of converting atolls into artificial islands ignoring international laws, a group of democratic countries huddled together to form 'the QUAD' with a potential to counterbalance such moves.

The international relationships and strategic interests of most countries in the interlinked world today are so interwoven, that it is difficult to count countries only in one grouping; hence, many new issue based groupings have emerged in last few decades. &nbsp; &nbsp;

In the exuberance of pursuing ‘America First’ policy, in the last few years, the US has been highly critical of some of its allies, strategic and trade partners. In some cases, it used threatening gestures, while some others were slapped with sanctions. The policy got a major jolt when America literally threatened everyone to support their decision of shifting embassy to Jerusalem, but many countries junked the threat and voted as per their own perception. Pulling out of the Paris Accord for Climate Change, Iran Nuclear deal, TPP are some more examples when many of US allies were not on the same page with the Trump Administration.&nbsp;

The last G7 Summit was not a pleasant experience for the US allies due to alleged self-centred economic approach of America. The NATO allies are also relatively lesser confident of the US-backing and keep waiting for next surprise from Trump Administration. Under these circumstances, Is Trump's Concept of ‘With US’ or ‘Against the US’ is outdated in the interlinked world?&nbsp;

On the other hand, Chinese after announcing Belt and Road Initiative (BRI) in 2013, with the elevation of President Xi Jinping from ‘Chairman of everything’ to ‘Core’ and ‘Leader for life’, exhibited its expeditionary design starting from the South China Sea to land grabbing. With its fast growth, it tried to showcase that its methodology of governance was better than the democratic model. Its ‘Incremental Encroachment Strategy’ in Doklam and the South China Sea, exhibited Chinese ambitions exceeding beyond peaceful growth to the arena of global strategic dominance; hence it started facing opposition from a group of democratic countries.

In the case of Russia also, we find Germany, a US ally, drawing gas from them. Furthermore, Russia and China helped out North Korea with fuel and essentialities immediately after Singapore Summit between President Trump and North Korean leader Kim Jong-un. Russia - a strategic partner of India supplies military hardware to Pakistan. A cross-pollination of relations is therefore quite evident.&nbsp;

The time has come when most countries want to manage their international relations as per their own national interests and do not want their strategic choices to be dictated by others. It is also a fact that as the world becoming more interconnected, the trend of issue-based relationships is increasing. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The G20 Summit 2018, besides its normal proceedings, will be remembered for a large number of bilateral and trilateral meetings on the sidelines, which seem to be even more significant than the main purpose of the meet.

The G20 Summit 2018, besides its normal proceedings, will be remembered for a large number of bilateral and trilateral meetings on the sidelines, which seem to be even more significant than the main purpose of the meet. There were some high profile bilateral meetings like US-China in the context of trade war. Meanwhile, US–Russia meeting (scheduling of which saw many flip-flops) finally could not take place due to Ukraine crisis and ongoing investigations into alleged Russia's involvement in the US elections. The two trilateral meetings involving US-Japan-India and China-Russia-India were also very significant because of the peculiarity of Indian position in both the meetings. One of the reasons for this phenomenon is that the world has become more interconnected, hence even bilateral relations between global powers impact the world directly or indirectly. For an instance, when a large number of countries including US allies, strategic and trade partners joined The Asian Infrastructure Investment Bank (AIIB), against the wishes of the US, it was quite evident that a time has come when many countries will like to have alternate sources of funding other than west dominated IMF or Japan-led Asian Development Bank (ADB). Similarly, when China exhibited aggressive design of converting atolls into artificial islands ignoring international laws, a group of democratic countries huddled together to form 'the QUAD' with a potential to counterbalance such moves. The international relationships and strategic interests of most countries in the interlinked world today are so interwoven, that it is difficult to count countries only in one grouping; hence, many new issue based groupings have emerged in last few decades. In the exuberance of pursuing ‘America First’ policy, in the last few years, the US has been highly critical of some of its allies, strategic and trade partners. In some cases, it used threatening gestures, while some others were slapped with sanctions. The policy got a major jolt when America literally threatened everyone to support their decision of shifting embassy to Jerusalem, but many countries junked the threat and voted as per their own perception. Pulling out of the Paris Accord for Climate Change, Iran Nuclear deal, TPP are some more examples when many of US allies were not on the same page with the Trump Administration. The last G7 Summit was not a pleasant experience for the US allies due to alleged self-centred economic approach of America. The NATO allies are also relatively lesser confident of the US-backing and keep waiting for next surprise from Trump Administration. Under these circumstances, Is Trump's Concept of ‘With US’ or ‘Against the US’ is outdated in the interlinked world? On the other hand, Chinese after announcing Belt and Road Initiative (BRI) in 2013, with the elevation of President Xi Jinping from ‘Chairman of everything’ to ‘Core’ and ‘Leader for life’, exhibited its expeditionary design starting from the South China Sea to land grabbing. With its fast growth, it tried to showcase that its methodology of governance was better than the democratic model. Its ‘Incremental Encroachment Strategy’ in Doklam and the South China Sea, exhibited Chinese ambitions exceeding beyond peaceful growth to the arena of global strategic dominance; hence it started facing opposition from a group of democratic countries. In the case of Russia also, we find Germany, a US ally, drawing gas from them. Furthermore, Russia and China helped out North Korea with fuel and essentialities immediately after Singapore Summit between President Trump and North Korean leader Kim Jong-un. Russia - a strategic partner of India supplies military hardware to Pakistan. A cross-pollination of relations is therefore quite evident. The time has come when most countries want to manage their international relations as per their own national interests and do not want their strategic choices to be dictated by others. It is also a fact that as the world becoming more interconnected, the trend of issue-based relationships is increasing. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The importance of strategic balance in an interconnected world

By Tony Walker

The United States and China have arrived at a temporary truce in a trade conflict that was threatening to further destabilise world equity markets, entrench a global slowdown and cause more damage to a rules-based international order.

Agreement by US President Donald Trump and his Chinese counterpart, Xi Jinping, to allow further negotiations before threatened tariff increases on Chinese imports coming into effect, is a welcome development.

However, this is a temporary respite, a short-term fix, not a long-term solution to myriad trade and other tensions that have put the US and China at odds with each other.

For their own purposes and in their own interests, Trump and Xi have come away from the Argentine capital with a deal that papers over differences that extend from China’s activities in the South China Sea to its mercantilist trade policies.

As far as we know, China’s ruthless assertion of its sovereignty over disputed waters in the South China Sea was not a material subject for discussion in Buenos Aires except, possibly, in passing.

China’s rise and America’s relative decline ensure these global economic superpowers will continue to bump up against each other.

So, what was achieved and what are the prospects for an accord reached on the sidelines of the G20?

In their efforts to lower trade tensions and prevent a further erosion of global confidence, Trump and Xi agreed to a 90-day extension on the imposition of additional US tariffs on some $200 billion of Chinese imports.

Trump had threatened to increase tariffs from 10 per cent to 25 per cent on an initial batch of Chinese imports from January 1. He had also flagged his intention to impose levies on another $267 billion worth of imports if progress was not made in resolving broad-based trade differences.

A joint statement laid out a timeline for continuing negotiations. It reads:

"Both parties agree that they will endeavour to have this transaction completed within the next 90 days. If, at the end of this period of time, the parties are unable to reach an agreement, the 10 per cent tariffs will be raised to 25 percent."

In return for these temporary concessions, China agreed to:

"… purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between the two countries. China has agreed to start purchasing agricultural product immediately."

China also agreed to crack down on sales of Fentanyl by making it a controlled substance. The US is battling an opioid crisis in which Fentanyl is a lethal component.

In retaliation for US trade actions, China had imposed duties on US$110 billion of imports. A principal component of this is soybeans, effectively killing one of America’s more lucrative export markets.

Trump has been under huge pressure from his Mid-Western rural heartland over a collapse in the Chinese market for American agricultural products.

The two sides also agreed to address structural problems in the trading relationship. These extend to five areas – forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft.

These are highly complex issues and unlikely to be resolved in the short term, if at all.

In the wash-up of the Xi-Trump discussions, it appears China has got more out of the deal than the US – at least for now. It has secured a stay of execution for the implementation of tariff increases and forestalled, for the time being, tariffs on an additional bloc of Chinese exports.

In return, it has agreed to buy unspecified quantities of US products and to talk about differences.

Trump’s willingness to compromise after months of bombast reflects pressures from a shellshocked grain-producing constituency and alarm on Wall Street at prospects of a full-blown trade war.

From Beijing’s perspective, China has demonstrated that its growing economic heft has enabled it to avoid the appearance of yielding to US pressure.

If not a “win-win” for China – as Chinese officials are fond of saying – it is certainly not a “lose-lose”.

In a statement at odds with months of fire-breathing rhetoric over China’s allegedly perfidious trade practices, Trump hailed his understanding with Xi. He said: "This was an amazing and productive meeting with unlimited possibilities for both the US and China."

For their part, Chinese officials were more circumspect.

Foreign Minister Wang Yi said the talks were conducted in a “friendly and candid atmosphere”. The presidents: "Agreed that the two sides can and must get bilateral relations right… China is willing to increase imports in accordance with the needs of its domestic market and the people’s needs."

Impetus for a face-saving deal in Buenos Aires has been prompted by growing concerns about the global economy. The signs of a slowdown are clear. Trade volumes had begun to moderate in the third quarter, heightening worries of a global retrenchment.

On the sidelines of the G20, the International Monetary Fund’s managing director, Christine Lagarde, noted:

"Pressures on emerging markets have been rising and trade tensions have begun to have a negative impact, increasing downside risks."

In its October Outlook statement, the IMF warned about threats to global growth due to trade disturbances.

In their final communique, G20 leaders danced around contentious issues on trade to accommodate American objections to having the word “protectionism” inserted in the document.

In the end, participants settled on the need for reform of the World Trade Organisation to describe a world trading system that is falling short of its objectives. Washington has been agitating for a review of the WTO to strengthen its dispute resolution and appeal procedures.

The US has also objected to a continuing description of China as a developing country, with concessions that enable it to take advantage of less developed country status in its access to global markets.

On climate change, Washington separated itself from the other G20 members. All, except the US, reaffirmed their commitment to the Paris Agreement. The US announced in 2017 it was pulling out of Paris.

Foreign policy specialists will be sceptical about a de-escalation of trade hostilities given the range of issues bedevilling the US-China relationship.

Reflecting a hardening of US attitudes towards China, and in contrast to the optimism that had prevailed for much of the past two decades, Ely Ratner in Foreign Affairs notes:

"Even if tariffs are put on hold, the United States will continue to restructure the US-China economic relationship through investment restrictions, export controls, and sustained law enforcement actions against Chinese industrial and cyber-espionage."

"At the same time, there are no serious prospects for Washington and Beijing to resolve other important areas of dispute, including the South China Sea, human rights and the larger contest over the norms, rules and institutions that govern relations in Asia."

A stiffening view in the US towards China is shared more or less across the board. In those circumstances, a temporary ceasefire in Buenos Aires is unlikely to be sustained.

 
(Tony Walker is Adjunct Professor, School of Communications, La Trobe University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/g20-summit-bring-a-truce-in-us-china-trade-relations-but-its-likely-to-be-temporary-108017">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

By Tony Walker The United States and China have arrived at a temporary truce in a trade conflict that was threatening to further destabilise world equity markets, entrench a global slowdown and cause more damage to a rules-based international order.

By Tony Walker The United States and China have arrived at a temporary truce in a trade conflict that was threatening to further destabilise world equity markets, entrench a global slowdown and cause more damage to a rules-based international order. Agreement by US President Donald Trump and his Chinese counterpart, Xi Jinping, to allow further negotiations before threatened tariff increases on Chinese imports coming into effect, is a welcome development. However, this is a temporary respite, a short-term fix, not a long-term solution to myriad trade and other tensions that have put the US and China at odds with each other. For their own purposes and in their own interests, Trump and Xi have come away from the Argentine capital with a deal that papers over differences that extend from China’s activities in the South China Sea to its mercantilist trade policies. As far as we know, China’s ruthless assertion of its sovereignty over disputed waters in the South China Sea was not a material subject for discussion in Buenos Aires except, possibly, in passing. China’s rise and America’s relative decline ensure these global economic superpowers will continue to bump up against each other. So, what was achieved and what are the prospects for an accord reached on the sidelines of the G20? In their efforts to lower trade tensions and prevent a further erosion of global confidence, Trump and Xi agreed to a 90-day extension on the imposition of additional US tariffs on some $200 billion of Chinese imports. Trump had threatened to increase tariffs from 10 per cent to 25 per cent on an initial batch of Chinese imports from January 1. He had also flagged his intention to impose levies on another $267 billion worth of imports if progress was not made in resolving broad-based trade differences. A joint statement laid out a timeline for continuing negotiations. It reads: "Both parties agree that they will endeavour to have this transaction completed within the next 90 days. If, at the end of this period of time, the parties are unable to reach an agreement, the 10 per cent tariffs will be raised to 25 percent." In return for these temporary concessions, China agreed to: "… purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between the two countries. China has agreed to start purchasing agricultural product immediately." China also agreed to crack down on sales of Fentanyl by making it a controlled substance. The US is battling an opioid crisis in which Fentanyl is a lethal component. In retaliation for US trade actions, China had imposed duties on US$110 billion of imports. A principal component of this is soybeans, effectively killing one of America’s more lucrative export markets. Trump has been under huge pressure from his Mid-Western rural heartland over a collapse in the Chinese market for American agricultural products. The two sides also agreed to address structural problems in the trading relationship. These extend to five areas – forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft. These are highly complex issues and unlikely to be resolved in the short term, if at all. In the wash-up of the Xi-Trump discussions, it appears China has got more out of the deal than the US – at least for now. It has secured a stay of execution for the implementation of tariff increases and forestalled, for the time being, tariffs on an additional bloc of Chinese exports. In return, it has agreed to buy unspecified quantities of US products and to talk about differences. Trump’s willingness to compromise after months of bombast reflects pressures from a shellshocked grain-producing constituency and alarm on Wall Street at prospects of a full-blown trade war. From Beijing’s perspective, China has demonstrated that its growing economic heft has enabled it to avoid the appearance of yielding to US pressure. If not a “win-win” for China – as Chinese officials are fond of saying – it is certainly not a “lose-lose”. In a statement at odds with months of fire-breathing rhetoric over China’s allegedly perfidious trade practices, Trump hailed his understanding with Xi. He said: "This was an amazing and productive meeting with unlimited possibilities for both the US and China." For their part, Chinese officials were more circumspect. Foreign Minister Wang Yi said the talks were conducted in a “friendly and candid atmosphere”. The presidents: "Agreed that the two sides can and must get bilateral relations right… China is willing to increase imports in accordance with the needs of its domestic market and the people’s needs." Impetus for a face-saving deal in Buenos Aires has been prompted by growing concerns about the global economy. The signs of a slowdown are clear. Trade volumes had begun to moderate in the third quarter, heightening worries of a global retrenchment. On the sidelines of the G20, the International Monetary Fund’s managing director, Christine Lagarde, noted: "Pressures on emerging markets have been rising and trade tensions have begun to have a negative impact, increasing downside risks." In its October Outlook statement, the IMF warned about threats to global growth due to trade disturbances. In their final communique, G20 leaders danced around contentious issues on trade to accommodate American objections to having the word “protectionism” inserted in the document. In the end, participants settled on the need for reform of the World Trade Organisation to describe a world trading system that is falling short of its objectives. Washington has been agitating for a review of the WTO to strengthen its dispute resolution and appeal procedures. The US has also objected to a continuing description of China as a developing country, with concessions that enable it to take advantage of less developed country status in its access to global markets. On climate change, Washington separated itself from the other G20 members. All, except the US, reaffirmed their commitment to the Paris Agreement. The US announced in 2017 it was pulling out of Paris. Foreign policy specialists will be sceptical about a de-escalation of trade hostilities given the range of issues bedevilling the US-China relationship. Reflecting a hardening of US attitudes towards China, and in contrast to the optimism that had prevailed for much of the past two decades, Ely Ratner in Foreign Affairs notes: "Even if tariffs are put on hold, the United States will continue to restructure the US-China economic relationship through investment restrictions, export controls, and sustained law enforcement actions against Chinese industrial and cyber-espionage." "At the same time, there are no serious prospects for Washington and Beijing to resolve other important areas of dispute, including the South China Sea, human rights and the larger contest over the norms, rules and institutions that govern relations in Asia." A stiffening view in the US towards China is shared more or less across the board. In those circumstances, a temporary ceasefire in Buenos Aires is unlikely to be sustained. (Tony Walker is Adjunct Professor, School of Communications, La Trobe University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

G20 summit brings a truce in US-China trade relations

US President <a href="http://www.wionews.com/world/us-says-it-is-suspending-new-china-tariffs-for-90-days-180809">Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs</a> in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place.

Following more than two hours of dinner talks between the two leaders, the White House said an increase of tariffs from 10 to 25 per cent due to kick in on January 1 would now be put on hold, providing room for intense negotiations.&nbsp;

The agreement hashed out over steak in the Argentine capital Buenos Aires, lowers the temperature in a conflict that has spooked world markets.

The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting," the White House said.

"The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," said Chinese Foreign Minister Wang Yi.

Partial truce

Under the agreement, Trump is shelving a plan to raise existing tariffs of 10 per cent to 25 per cent from the start of next year.

Xi avoids further immediate pressure on China's slowing economy, while Trump -- hit by the US Democrats' congressional win in last month's mid-term elections -- can ease damage to agricultural US states that export to China, particularly the key soybean crop.

"This was a rare opportunity for China because (the mid-terms) made Trump a lame president," said Beijing-based political consultant Hua Po.

"So at this time it was acceptable for China to maintain some bottom lines while making some major concessions."

But Brad Setser, a former Treasury official and now senior fellow at the Council on Foreign Relations in Washington, told Bloomberg much remains to be done.

"The hard part is finding the basis for a real deal that settles the broader issues rather than agreeing on a pause," Setser said.

The truce is only partial.

Some $50 billion worth of Chinese imports already face 25 per cent tariffs, while the 10 per cent tariffs -- which target a massive $200 billion in goods -- will also remain in effect.&nbsp;

Meanwhile, China has targeted $110 billion worth of US imports for tariffs.&nbsp;

If there is any further retaliation, Trump has warned, he will slap punitive duties on the remaining $267 billion in Chinese goods coming to the United States.

And Saturday's truce also contained an ultimatum.

The White House made clear that the 10 per cent tariffs would still leap up to 25 per cent if China doesn't meet US demands in 90 days.

These include China stopping a host of trade barriers, intellectual property theft and other actions that Washington says make fair trade impossible.&nbsp;

Tough negotiations lie ahead, but Trump was upbeat.

"This was an amazing and productive meeting with unlimited possibilities for both the United States and China," he said in a statement.

Steaks and high stakes

The meeting -- featuring a menu of sirloin steak, caramel rolled pancakes and Argentine wine -- went on longer than scheduled.&nbsp;

And while it may have been tacked on to the end of two days of G20 diplomacy, it was in many ways the main event of the weekend.

German Chancellor Angela Merkel, who was also attending the G20, spoke for many when she urged progress.

"We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs," she said.

Personal chemistry factor

On the US side at the dinner, Trump was accompanied by advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting a deal.

But hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer were also present.&nbsp;

Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations.

He has prided himself on building a good relationship with the Chinese leader, even though he acknowledges it may have trouble surviving the growing crisis.

At the dinner, Trump said his ties to Xi were "a very primary reason" for considering a deal possible.

US President Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place.

US President Donald Trump and China's Xi Jinping agreed Saturday to suspend any new tariffs in the escalating trade war between the world's two largest economies, even if huge existing duties will remain in place. Following more than two hours of dinner talks between the two leaders, the White House said an increase of tariffs from 10 to 25 per cent due to kick in on January 1 would now be put on hold, providing room for intense negotiations. The agreement hashed out over steak in the Argentine capital Buenos Aires, lowers the temperature in a conflict that has spooked world markets. The two leaders, who were in Buenos Aires for a summit of the G20 countries, called it "a highly successful meeting," the White House said. "The principal agreement has effectively prevented further expansion of economic friction between the two countries and has opened up new space for win-win cooperation," said Chinese Foreign Minister Wang Yi. Partial truce Under the agreement, Trump is shelving a plan to raise existing tariffs of 10 per cent to 25 per cent from the start of next year. Xi avoids further immediate pressure on China's slowing economy, while Trump -- hit by the US Democrats' congressional win in last month's mid-term elections -- can ease damage to agricultural US states that export to China, particularly the key soybean crop. "This was a rare opportunity for China because (the mid-terms) made Trump a lame president," said Beijing-based political consultant Hua Po. "So at this time it was acceptable for China to maintain some bottom lines while making some major concessions." But Brad Setser, a former Treasury official and now senior fellow at the Council on Foreign Relations in Washington, told Bloomberg much remains to be done. "The hard part is finding the basis for a real deal that settles the broader issues rather than agreeing on a pause," Setser said. The truce is only partial. Some $50 billion worth of Chinese imports already face 25 per cent tariffs, while the 10 per cent tariffs -- which target a massive $200 billion in goods -- will also remain in effect. Meanwhile, China has targeted $110 billion worth of US imports for tariffs. If there is any further retaliation, Trump has warned, he will slap punitive duties on the remaining $267 billion in Chinese goods coming to the United States. And Saturday's truce also contained an ultimatum. The White House made clear that the 10 per cent tariffs would still leap up to 25 per cent if China doesn't meet US demands in 90 days. These include China stopping a host of trade barriers, intellectual property theft and other actions that Washington says make fair trade impossible. Tough negotiations lie ahead, but Trump was upbeat. "This was an amazing and productive meeting with unlimited possibilities for both the United States and China," he said in a statement. Steaks and high stakes The meeting -- featuring a menu of sirloin steak, caramel rolled pancakes and Argentine wine -- went on longer than scheduled. And while it may have been tacked on to the end of two days of G20 diplomacy, it was in many ways the main event of the weekend. German Chancellor Angela Merkel, who was also attending the G20, spoke for many when she urged progress. "We all realize that we are indirectly influenced by the fact that Sino-American economic relations are not running as smoothly as a world order needs," she said. Personal chemistry factor On the US side at the dinner, Trump was accompanied by advisers such as Larry Kudlow and Treasury Secretary Steven Mnuchin, who are widely seen as wanting a deal. But hawkish advisers like Peter Navarro and US Trade Representative Robert Lighthizer were also present. Trump, as often in his diplomatic dealings, appears to consider his personal chemistry with Xi the most important factor in the success of the negotiations. He has prided himself on building a good relationship with the Chinese leader, even though he acknowledges it may have trouble surviving the growing crisis. At the dinner, Trump said his ties to Xi were "a very primary reason" for considering a deal possible.

US, China agree to trade war ceasefire, talks to continue

China has not accepted India's proposal to carry out bilateral trade in local currencies which was aimed at bridging the ballooning trade deficit with the neighbouring country, an official said.

India's exports to China stood at only $13.4 billion, imports aggregated to $76.4 billion in 2017-18, leaving a trade deficit of $63 billion. It was $51.11 billion in 2016-17.

India had suggested China for renminbi-rupee trade to boost its exports and tackle the widening trade deficit concern.

'They have not accepted the proposal,'&nbsp;the official said.

The issue was discussed in an inter-ministerial meeting in October. In the meeting, it was suggested to the Reserve Bank of India and the Department of Economic Affairs would look at the possibility of exploring renminbi-rupee trade with China.

India has also proposed trade in national currencies with some other countries, including Russia, Iran and Venezuela. New Delhi has trade deficit with these three countries, too.

The Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that the government should promote exports from India in the domestic currency.

'This will help in bridging trade deficit with countries like China,'&nbsp;Gupta said.

Trade experts have stated that bilateral trade in domestic currencies will help India only in the case of those countries with which it has a trade balance.

"Trade imbalance should not be there with the country with which we want to do trade in rupee. It will not help in bridging the deficit. The partner country should have an opportunity to invest in India to use the rupee," said Biswajit Dhar, a professor at Jawaharlal Nehru University.

The Indian industry and exporters have time and again raised the issue of increasing trade deficit with China and have asked the government to seek greater market access for domestic goods in the Chinese market.

Recently, China has permitted exports of rice and sugar. But India wants to increase exports of several other items, including pharmaceuticals, engineering and services.&nbsp;

China has not accepted India's proposal to carry out bilateral trade in local currencies which was aimed at bridging the ballooning trade deficit with the neighbouring country, an official said.

China has not accepted India's proposal to carry out bilateral trade in local currencies which was aimed at bridging the ballooning trade deficit with the neighbouring country, an official said. India's exports to China stood at only $13.4 billion, imports aggregated to $76.4 billion in 2017-18, leaving a trade deficit of $63 billion. It was $51.11 billion in 2016-17. India had suggested China for renminbi-rupee trade to boost its exports and tackle the widening trade deficit concern. 'They have not accepted the proposal,' the official said. The issue was discussed in an inter-ministerial meeting in October. In the meeting, it was suggested to the Reserve Bank of India and the Department of Economic Affairs would look at the possibility of exploring renminbi-rupee trade with China. India has also proposed trade in national currencies with some other countries, including Russia, Iran and Venezuela. New Delhi has trade deficit with these three countries, too. The Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta said that the government should promote exports from India in the domestic currency. 'This will help in bridging trade deficit with countries like China,' Gupta said. Trade experts have stated that bilateral trade in domestic currencies will help India only in the case of those countries with which it has a trade balance. "Trade imbalance should not be there with the country with which we want to do trade in rupee. It will not help in bridging the deficit. The partner country should have an opportunity to invest in India to use the rupee," said Biswajit Dhar, a professor at Jawaharlal Nehru University. The Indian industry and exporters have time and again raised the issue of increasing trade deficit with China and have asked the government to seek greater market access for domestic goods in the Chinese market. Recently, China has permitted exports of rice and sugar. But India wants to increase exports of several other items, including pharmaceuticals, engineering and services.

China says no to India's proposal for bilateral trade in domestic currencies

US President Donald Trump said <a href="http://www.wionews.com/world/ahead-of-g20-meeting-with-xi-trump-says-billions-of-dollar-pouring-into-us-due-to-tariffs-on-china-180279">Thursday a trade deal with Beijing</a> was "close" but added he might prefer not to reach one, cooling hopes for a breakthrough at a summit this week.

Trump and Chinese President Xi Jinping are due to meet during the Group of 20 summit in Argentina, which begins Friday.

"I think we are very close to doing something with China but I don't know that I want to do it," Trump told reporters at the White House before departing for Buenos Aires.

Trump has slapped punishing tariffs on more than $250 billion in Chinese imports so far this year, demanding that Beijing end allegedly unfair trade practices and reverse industrial policies criticized by other major economies.

US officials in recent days have also renewed their criticism of Beijing in advance of the Xi-Trump meeting.

Markets are hoping a deal can be reached before the end of the year, when US duty rates are due to increase significantly.

Trump on Thursday also reiterated that US tariffs were generating tax revenues: "What we have right now is billions and billions of dollars coming into the United States in the form of taxes," he said.

Economists and critics of the president's trade policies point out duties are paid by importers and thus constitute a tax on US industry and consumers that is not paid by China.

Trump also said he believed Beijing was hoping to strike a deal.

"I think China wants to make a deal. I am open to making a deal but frankly I like the deal that we have right now," he said.

Wall Street extended early losses following Trump's remarks, with the Dow Jones Industrial Average 0.6 per cent lower shortly after 1600 GMT. 
&nbsp;

US President Donald Trump said Thursday a trade deal with Beijing was "close" but added he might prefer not to reach one, cooling hopes for a breakthrough at a summit this week.

US President Donald Trump said Thursday a trade deal with Beijing was "close" but added he might prefer not to reach one, cooling hopes for a breakthrough at a summit this week. Trump and Chinese President Xi Jinping are due to meet during the Group of 20 summit in Argentina, which begins Friday. "I think we are very close to doing something with China but I don't know that I want to do it," Trump told reporters at the White House before departing for Buenos Aires. Trump has slapped punishing tariffs on more than $250 billion in Chinese imports so far this year, demanding that Beijing end allegedly unfair trade practices and reverse industrial policies criticized by other major economies. US officials in recent days have also renewed their criticism of Beijing in advance of the Xi-Trump meeting. Markets are hoping a deal can be reached before the end of the year, when US duty rates are due to increase significantly. Trump on Thursday also reiterated that US tariffs were generating tax revenues: "What we have right now is billions and billions of dollars coming into the United States in the form of taxes," he said. Economists and critics of the president's trade policies point out duties are paid by importers and thus constitute a tax on US industry and consumers that is not paid by China. Trump also said he believed Beijing was hoping to strike a deal. "I think China wants to make a deal. I am open to making a deal but frankly I like the deal that we have right now," he said. Wall Street extended early losses following Trump's remarks, with the Dow Jones Industrial Average 0.6 per cent lower shortly after 1600 GMT.

Close to doing deal with China but I don't know I want to do it, says Trump ahead of meeting with Xi

Ahead of the crucial <a href="http://www.wionews.com/world/us-under-no-pressure-to-make-trade-deal-with-china-says-trump-165480">G20 meeting with President Xi</a> on Saturday, President tweeted today asserting that billons were pouring into US coffers because of tariffs being charged to China.

"If companies don’t want to pay tariffs, <a href="http://www.wionews.com/world/us-china-trade-deal-could-cost-europe-frances-economy-minister-bruno-le-maire-138400">build in the USA, otherwise, let's just make</a> our country richer than ever before!", the president said in his tweet.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1068120444279103488?ref_src=twsrc%5Etfw">November 29, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

Experts around the globe are expecting a breakthrough in talks between Xi and Trump in an escalating trade war which has upset market sentiments across the world.

China's commerce ministry said today that it hoped for "positive results" in resolving a trade dispute with the United States at a G20 summit in Argentina.

The United States has levied additional duties of between 10 per cent and 25 per cent on $250 billion of Chinese goods with 10 per cent tariffs set to climb to 25 per cent next year.

"The Chinese side has repeatedly stressed that the essence of Sino-US economic and trade cooperation is about mutual benefit and win-win," the commerce ministry spokesman said.

The White House had said this week that it was open to a trade deal with China during Trump-Xi talks.

Meanwhile, US trade representative Robert Lighthizer said that the US administration officials were examining all available tools to raise US tariffs on Chinese vehicles to the 40 per cent duties that China is now charging on US-produced vehicles.

China had raised tariffs as a result of a tit-for-tat response after the US imposed &nbsp;25 per cent tariff on Chinese vehicles on top of the 2.5 per cent it normally charges.

China had lowered tariffs for all other countries to 15 per cent, but imposed an additional 25 per cent retaliatory tariff on US vehicles.

As the President has repeatedly noted, China's aggressive, State-directed industrial policies are causing severe harm to US workers and manufacturers," Lighthizer said, adding,"we are continuing to raise these issues with China. As of yet, China has not come to the table with proposals for meaningful reform."

Ahead of the crucial G20 meeting with President Xi on Saturday, President tweeted today asserting that billons were pouring into US coffers because of tariffs being charged to China.

Ahead of the crucial G20 meeting with President Xi on Saturday, President tweeted today asserting that billons were pouring into US coffers because of tariffs being charged to China. "If companies don’t want to pay tariffs, build in the USA, otherwise, let's just make our country richer than ever before!", the president said in his tweet. Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before! — Donald J. Trump (@realDonaldTrump) November 29, 2018 × Experts around the globe are expecting a breakthrough in talks between Xi and Trump in an escalating trade war which has upset market sentiments across the world. China's commerce ministry said today that it hoped for "positive results" in resolving a trade dispute with the United States at a G20 summit in Argentina. The United States has levied additional duties of between 10 per cent and 25 per cent on $250 billion of Chinese goods with 10 per cent tariffs set to climb to 25 per cent next year. "The Chinese side has repeatedly stressed that the essence of Sino-US economic and trade cooperation is about mutual benefit and win-win," the commerce ministry spokesman said. The White House had said this week that it was open to a trade deal with China during Trump-Xi talks. Meanwhile, US trade representative Robert Lighthizer said that the US administration officials were examining all available tools to raise US tariffs on Chinese vehicles to the 40 per cent duties that China is now charging on US-produced vehicles. China had raised tariffs as a result of a tit-for-tat response after the US imposed 25 per cent tariff on Chinese vehicles on top of the 2.5 per cent it normally charges. China had lowered tariffs for all other countries to 15 per cent, but imposed an additional 25 per cent retaliatory tariff on US vehicles. As the President has repeatedly noted, China's aggressive, State-directed industrial policies are causing severe harm to US workers and manufacturers," Lighthizer said, adding,"we are continuing to raise these issues with China. As of yet, China has not come to the table with proposals for meaningful reform."

Ahead of G20 meeting with Xi, Trump says billions of dollars pouring into US due to tariffs on China

China today expressed <a href="http://www.wionews.com/world/watch-china-conducts-limited-live-fire-drills-in-taiwan-straits-131380">concern over US Naval ships</a> passing through Taiwan Straits.

"China has closely watched and has fully grasped the whole route of the United States warships sailing through the Taiwan Strait. China has already expressed our concerns to the United States," a foreign ministry spokesman said.

China had earlier expressed its dissatisfaction over US plans to sell a batch of military parts to the Taiwanese government. The United States sent two Naval ships through the Taiwan Strait on Wednesday riling the Communist state.

The Taiwan issue is related to China's sovereignty and territorial integrity. It is the most important and sensitive issue in China-US relations," the spokesman added.

The US plans to sell F-16 fighter and the C-130 cargo plane including US ship standard spare parts for several aircrafts, a move which was frowned upon by China recently. China had accused US of violating "international laws and norms governing foreign relations".

China considers Taiwan as one of its provinces and has been at loggerheads with the Taiwan government since the 1940s. The US and Taiwan have been close allies since the 1970S with Washington being a major arms supplier to the island nation.

"We urge the United States to respect the one-China principle and the provisions of the three joint communiqués, cautiously and appropriately handle the Taiwan issue, avoid damaging the peace and stability of the Taiwan Straits and China-US relations," the spokesman added.

Taiwan has also been engaged in a bitter conflict with China over the South China Sea along with other nations insisting on "freedom of navigation", a move which was backed by US vice-president Mike Pence earlier.

Pence had said there was no place for "empire and aggression" in the Indo-Pacific region, referring to China's tiff with nations in the Pacific who have opposed China's South China Sea strategy.

The US has often called for a stop to the "militarization" of the South China Sea. The confrontation and conflict approach has marred US-China relations in recent months in the middle of an uncomfortable trade war.

China today expressed concern over US Naval ships passing through Taiwan Straits. "China has closely watched and has fully grasped the whole route of the United States warships sailing through the Taiwan Strait.

China today expressed concern over US Naval ships passing through Taiwan Straits. "China has closely watched and has fully grasped the whole route of the United States warships sailing through the Taiwan Strait. China has already expressed our concerns to the United States," a foreign ministry spokesman said. China had earlier expressed its dissatisfaction over US plans to sell a batch of military parts to the Taiwanese government. The United States sent two Naval ships through the Taiwan Strait on Wednesday riling the Communist state. The Taiwan issue is related to China's sovereignty and territorial integrity. It is the most important and sensitive issue in China-US relations," the spokesman added. The US plans to sell F-16 fighter and the C-130 cargo plane including US ship standard spare parts for several aircrafts, a move which was frowned upon by China recently. China had accused US of violating "international laws and norms governing foreign relations". China considers Taiwan as one of its provinces and has been at loggerheads with the Taiwan government since the 1940s. The US and Taiwan have been close allies since the 1970S with Washington being a major arms supplier to the island nation. "We urge the United States to respect the one-China principle and the provisions of the three joint communiqués, cautiously and appropriately handle the Taiwan issue, avoid damaging the peace and stability of the Taiwan Straits and China-US relations," the spokesman added. Taiwan has also been engaged in a bitter conflict with China over the South China Sea along with other nations insisting on "freedom of navigation", a move which was backed by US vice-president Mike Pence earlier. Pence had said there was no place for "empire and aggression" in the Indo-Pacific region, referring to China's tiff with nations in the Pacific who have opposed China's South China Sea strategy. The US has often called for a stop to the "militarization" of the South China Sea. The confrontation and conflict approach has marred US-China relations in recent months in the middle of an uncomfortable trade war.

We urge US to respect one-China principle and avoid damaging peace in Taiwan Straits: China

Most Asian markets rose Monday as investors tentatively pick up cheap stocks, with focus on an expected meeting between Donald Trump and Xi Jinping at the weekend that will be watched for signs of a softening in the China-US trade war.

The broad gains came despite more hefty selling in energy firms after another collapse in oil prices on Friday, while the pound was flat against the dollar after European Union leaders approved a Brexit deal but which must be cleared by British MPs who mostly oppose it.

The positive mood comes at the start of a key week that sees a speech by Federal Reserve boss Jerome Powell and the release of the bank's last policy meeting minutes, before culminating in the G20 in Buenos Aires.

While the summit will focus on several global issues, the meeting between Trump and Xi will get the most attention with the economic superpowers engaged in a trade war just as global growth starts to stutter.

But expectations for a deal to end the standoff are low.

"It would seem that President Xi and President Trump have every incentive to come to an agreement on trade issues, even if that agreement does not significantly change the status quo," said JP Morgan Asset Management chief global strategist David Kelly.

"However, perceptions are important on both sides. While some hold out the hope that an agreement in principle will be reached, it seems more likely that an agreement will have to wait for more posturing on both sides."

Stephen Innes, head of Asia-Pacific trade at OANDA, called the meeting "possibly the best and last opportunity for the two leaders to share middle ground".

"The big question is are we going to see Trump the 'deal maker' or Trump the 'trade warrior' who wants China to 'feel more pain'? Keeping in mind that betting against the latter has been a poor bet for traders this year."

Crude woes

Still, the week has started on an upbeat note with Hong Kong jumping 1.5 per cent and Shanghai 0.4 per cent higher, while Tokyo went into the break 0.8 per cent higher.

Singapore added 0.6 per cent, Seoul and Taipei each jumped more than one per cent, and Manila gained 0.6 per cent.

However, Wellington and Sydney both declined.

Oil prices edged up slightly but remain well beaten down after Friday's hammering, which saw WTI sink 7.7 per cent and Brent more than six per cent, putting them at lows not seen for more than a year.

The commodity has plunged by about a third from its four-year highs touched at the start of October owing to a range of issues, including a global slowdown, the trade row, rising supplies, softer-than-expected US sanctions on Iran, a stuttering China and strong dollar.

The retreat comes ahead of a meeting of the Organization of the Petroleum Exporting Countries on December 6.

"At the root of the oil market woes, there is too much supply and too little demand," said Innes. "But much of the near term price recovery will be driven by what happens in G20 in Buenos Aires and at the OPEC summit in Vienna a week later."

The losses in crude prices have battered energy firms over the past two months, and they continued to fall Monday.

Hong Kong-listed PetroChina fell 1.5 per cent, while Sinopec was one per cent off. Inpex dropped 2.9 per cent in Tokyo and Woodside Petroleum sank 2.2 per cent in Sydney.

On currency markets, the pound was barely moved against the dollar as British Prime Minister Theresa May faces an uphill struggle pushing through her draft Brexit deal, with MPs on both sides against it.

May has staked her political future on the agreement and failure would likely lead to the toppling of her government, fuelling fresh uncertainty and hitting the sterling.

EU leaders have said the deal is the best possible one Britain could hope for, meaning a rejection of it will more than likely see the country crash out of the bloc.

Key figures around 0230 GMT&nbsp;

Tokyo - Nikkei 225: UP 0.8 percent at 21,815.55 (break)

Hong Kong - Hang Seng: UP 1.5 percent at 26,314.63

Shanghai - Composite: UP 0.4 percent at 2,590.89

Pound/dollar: UP at $1.2810 from $1.2805 at 1930 GMT Friday

Euro/dollar: UP at $1.1333 from $1.1331

Dollar/yen: UP at 113.07 yen from 112.85 yen

Oil - West Texas Intermediate: UP 40 cents at $50.82 per barrel

Oil - Brent Crude: UP 67 cents at $59.47 per barrel

New York - Dow Jones: DOWN 0.7 percent at 24,285.95 (close)

London - FTSE 100: DOWN 0.1 percent at 6,952.86 (close)

Most Asian markets rose Monday as investors tentatively pick up cheap stocks, with focus on an expected meeting between Donald Trump and Xi Jinping at the weekend that will be watched for signs of a softening in the China-US trade war.

Most Asian markets rose Monday as investors tentatively pick up cheap stocks, with focus on an expected meeting between Donald Trump and Xi Jinping at the weekend that will be watched for signs of a softening in the China-US trade war. The broad gains came despite more hefty selling in energy firms after another collapse in oil prices on Friday, while the pound was flat against the dollar after European Union leaders approved a Brexit deal but which must be cleared by British MPs who mostly oppose it. The positive mood comes at the start of a key week that sees a speech by Federal Reserve boss Jerome Powell and the release of the bank's last policy meeting minutes, before culminating in the G20 in Buenos Aires. While the summit will focus on several global issues, the meeting between Trump and Xi will get the most attention with the economic superpowers engaged in a trade war just as global growth starts to stutter. But expectations for a deal to end the standoff are low. "It would seem that President Xi and President Trump have every incentive to come to an agreement on trade issues, even if that agreement does not significantly change the status quo," said JP Morgan Asset Management chief global strategist David Kelly. "However, perceptions are important on both sides. While some hold out the hope that an agreement in principle will be reached, it seems more likely that an agreement will have to wait for more posturing on both sides." Stephen Innes, head of Asia-Pacific trade at OANDA, called the meeting "possibly the best and last opportunity for the two leaders to share middle ground". "The big question is are we going to see Trump the 'deal maker' or Trump the 'trade warrior' who wants China to 'feel more pain'? Keeping in mind that betting against the latter has been a poor bet for traders this year." Crude woes Still, the week has started on an upbeat note with Hong Kong jumping 1.5 per cent and Shanghai 0.4 per cent higher, while Tokyo went into the break 0.8 per cent higher. Singapore added 0.6 per cent, Seoul and Taipei each jumped more than one per cent, and Manila gained 0.6 per cent. However, Wellington and Sydney both declined. Oil prices edged up slightly but remain well beaten down after Friday's hammering, which saw WTI sink 7.7 per cent and Brent more than six per cent, putting them at lows not seen for more than a year. The commodity has plunged by about a third from its four-year highs touched at the start of October owing to a range of issues, including a global slowdown, the trade row, rising supplies, softer-than-expected US sanctions on Iran, a stuttering China and strong dollar. The retreat comes ahead of a meeting of the Organization of the Petroleum Exporting Countries on December 6. "At the root of the oil market woes, there is too much supply and too little demand," said Innes. "But much of the near term price recovery will be driven by what happens in G20 in Buenos Aires and at the OPEC summit in Vienna a week later." The losses in crude prices have battered energy firms over the past two months, and they continued to fall Monday. Hong Kong-listed PetroChina fell 1.5 per cent, while Sinopec was one per cent off. Inpex dropped 2.9 per cent in Tokyo and Woodside Petroleum sank 2.2 per cent in Sydney. On currency markets, the pound was barely moved against the dollar as British Prime Minister Theresa May faces an uphill struggle pushing through her draft Brexit deal, with MPs on both sides against it. May has staked her political future on the agreement and failure would likely lead to the toppling of her government, fuelling fresh uncertainty and hitting the sterling. EU leaders have said the deal is the best possible one Britain could hope for, meaning a rejection of it will more than likely see the country crash out of the bloc. Key figures around 0230 GMT Tokyo - Nikkei 225: UP 0.8 percent at 21,815.55 (break) Hong Kong - Hang Seng: UP 1.5 percent at 26,314.63 Shanghai - Composite: UP 0.4 percent at 2,590.89 Pound/dollar: UP at $1.2810 from $1.2805 at 1930 GMT Friday Euro/dollar: UP at $1.1333 from $1.1331 Dollar/yen: UP at 113.07 yen from 112.85 yen Oil - West Texas Intermediate: UP 40 cents at $50.82 per barrel Oil - Brent Crude: UP 67 cents at $59.47 per barrel New York - Dow Jones: DOWN 0.7 percent at 24,285.95 (close) London - FTSE 100: DOWN 0.1 percent at 6,952.86 (close)

Asian markets mostly up as eyes turn to Trump-Xi talks

China "very badly" wants to <a href="http://www.wionews.com/world/china-hasnt-altered-its-unfair-market-distorting-trade-practices-says-ustr-ahead-of-trump-xi-meet-178468">have a trade deal with the US</a>, President Trump has said ahead of a meeting with his Chinese counterpart Xi Jinping in Argentina on the sidelines of the G-20 Summit.

China and the US are currently locked in an ongoing trade war as each country has introduced tariffs on goods traded between each other. Trump has promised to fix China's "longtime abuse of the broken international system and unfair practices".&nbsp;

Over the past six months, Trump has imposed additional trade tariffs on import of Chinese products worth $250 billion. He said another tariff of equal amount is in the pipeline.

Trump and Xi are scheduled to meet on the sidelines of the G-20 summit in Argentina on November 30 and December 1.&nbsp;

President Trump said that the US was doing very well with China.

"We're doing very well with China. China wants to make a deal very badly. They might not say that to you, but they want to make it very badly," Trump told reporters at the White House before leaving for his personal Mar-a-Lago resort in Florida to spend Thanksgiving holidays.

He said that the US will impose another $250 billion on China if there is no deal.

"I have another $250 billion worth of tariffs to put on if we don't make a deal. Believe me, I'll be putting them on because China has been ripping off our country for many, many years. And they don't rip us off with me," Trump said.

He said that the US economy is doing quite well.

"I'd like to see the Fed with a lower interest rate. I think the rate is too high. I think we have much more of a Fed problem than we have a problem with anyone else," he said. 
Trump also said that he made a great deal with Canada and Mexico.

Referring to Mexico, he said: "I appreciate the help that Mexico is giving us at the border. You see that people are not coming through. All of the fistfights and the fighting that you see are done on the Mexico side. They're not coming in here. But I appreciate what Mexico is doing. They can do more, but I appreciate what they're doing ". 
&nbsp;

China "very badly" wants to have a trade deal with the US, President Trump has said ahead of a meeting with his Chinese counterpart Xi Jinping in Argentina on the sidelines of the G-20 Summit.

China "very badly" wants to have a trade deal with the US, President Trump has said ahead of a meeting with his Chinese counterpart Xi Jinping in Argentina on the sidelines of the G-20 Summit. China and the US are currently locked in an ongoing trade war as each country has introduced tariffs on goods traded between each other. Trump has promised to fix China's "longtime abuse of the broken international system and unfair practices". Over the past six months, Trump has imposed additional trade tariffs on import of Chinese products worth $250 billion. He said another tariff of equal amount is in the pipeline. Trump and Xi are scheduled to meet on the sidelines of the G-20 summit in Argentina on November 30 and December 1. President Trump said that the US was doing very well with China. "We're doing very well with China. China wants to make a deal very badly. They might not say that to you, but they want to make it very badly," Trump told reporters at the White House before leaving for his personal Mar-a-Lago resort in Florida to spend Thanksgiving holidays. He said that the US will impose another $250 billion on China if there is no deal. "I have another $250 billion worth of tariffs to put on if we don't make a deal. Believe me, I'll be putting them on because China has been ripping off our country for many, many years. And they don't rip us off with me," Trump said. He said that the US economy is doing quite well. "I'd like to see the Fed with a lower interest rate. I think the rate is too high. I think we have much more of a Fed problem than we have a problem with anyone else," he said. Trump also said that he made a great deal with Canada and Mexico. Referring to Mexico, he said: "I appreciate the help that Mexico is giving us at the border. You see that people are not coming through. All of the fistfights and the fighting that you see are done on the Mexico side. They're not coming in here. But I appreciate what Mexico is doing. They can do more, but I appreciate what they're doing ".

I have another $250 billion worth of tariffs, China wants to make a deal very badly, says Trump

The Trump administration on <a href="http://www.wionews.com/business-economy/full-blown-us-china-trade-war-will-slow-global-growth-by-less-than-1-imf-170313">Tuesday said that China has</a> failed to alter its "unfair" practices at the heart of the US-China trade conflict, adding to tensions ahead of a high-stakes meeting later this month between US&nbsp;President Donald Trump and Chinese President Xi Jinping.

The findings were issued in an update of the US&nbsp;Trade Representative's "Section 301" investigation into China's intellectual property and technology transfer policies, which sparked US&nbsp;tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion.

"We completed this update as part of this Administration's strengthened monitoring and enforcement effort," USTR Robert Lighthizer said in a statement. "This update shows that China has not fundamentally altered its unfair, unreasonable, and market-distorting practices that were the subject of the March 2018 report on our Section 301 investigation."

In the update, USTR said it had found that China had not responded "constructively" to the initial section 301 reports and failed to take any substantive actions to address US&nbsp;concerns. It added that China had made clear it would not change its policies in response to the initial investigation.

USTR said that China was continuing its policy and practice of conducting and supporting cyber-enabled theft of US&nbsp;intellectual property and was continuing discriminatory technology licensing restrictions.

The update said that despite the relaxation of some foreign ownership restrictions, "the Chinese government has persisted in using foreign investment restrictions to require or pressure the transfer of technology from US&nbsp;companies to Chinese entities."

The report comes as the Trump administration and top Chinese officials are discussing possible ways out of their trade war and negotiating details of the Trump-Xi meeting on the sidelines of the G20 leaders summit in Buenos Aires at the end of November.

But acrimonious trade rhetoric between the governments of the world's two largest economies has been increasing in recent days, spilling over into an Asia-Pacific Economic Cooperation (APEC) summit last weekend.

A top Chinese diplomat said on Tuesday that the failure of APEC officials to agree on a communique from the summit was a result of certain countries "excusing" protectionism, a veiled criticism of Washington's tariffs.

US vice president Mike Pence had said on Saturday that the United States would not back down from the trade dispute, and might even double tariffs, unless Beijing bowed to US&nbsp;demands.

The Trump administration on Tuesday said that China has failed to alter its "unfair" practices at the heart of the US-China trade conflict, adding to tensions ahead of a high-stakes meeting later this month between US President Donald Trump and Chinese President Xi Jinping.

The Trump administration on Tuesday said that China has failed to alter its "unfair" practices at the heart of the US-China trade conflict, adding to tensions ahead of a high-stakes meeting later this month between US President Donald Trump and Chinese President Xi Jinping. The findings were issued in an update of the US Trade Representative's "Section 301" investigation into China's intellectual property and technology transfer policies, which sparked US tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion. "We completed this update as part of this Administration's strengthened monitoring and enforcement effort," USTR Robert Lighthizer said in a statement. "This update shows that China has not fundamentally altered its unfair, unreasonable, and market-distorting practices that were the subject of the March 2018 report on our Section 301 investigation." In the update, USTR said it had found that China had not responded "constructively" to the initial section 301 reports and failed to take any substantive actions to address US concerns. It added that China had made clear it would not change its policies in response to the initial investigation. USTR said that China was continuing its policy and practice of conducting and supporting cyber-enabled theft of US intellectual property and was continuing discriminatory technology licensing restrictions. The update said that despite the relaxation of some foreign ownership restrictions, "the Chinese government has persisted in using foreign investment restrictions to require or pressure the transfer of technology from US companies to Chinese entities." The report comes as the Trump administration and top Chinese officials are discussing possible ways out of their trade war and negotiating details of the Trump-Xi meeting on the sidelines of the G20 leaders summit in Buenos Aires at the end of November. But acrimonious trade rhetoric between the governments of the world's two largest economies has been increasing in recent days, spilling over into an Asia-Pacific Economic Cooperation (APEC) summit last weekend. A top Chinese diplomat said on Tuesday that the failure of APEC officials to agree on a communique from the summit was a result of certain countries "excusing" protectionism, a veiled criticism of Washington's tariffs. US vice president Mike Pence had said on Saturday that the United States would not back down from the trade dispute, and might even double tariffs, unless Beijing bowed to US demands.

China hasn't altered its unfair, market-distorting trade practices, says USTR ahead of Trump, Xi meet

The year 2018 has been an exceptional year for India-US economic relations. Trade tensions triggered by protectionist measures taken by the US Administration following the show of aggressive intent by President Donald Trump against the major economies, has left India in a piquant situation.

While several of those targeted have either adopted retaliatory measures or have decided to concede ground to the largest economic power, India seems to have been caught between the imperatives of maintaining a policy of non-confrontation with its strategic partner, on the one hand, and to protect the interests of domestic manufacturing industry, especially when the industry is facing some of the most serious challenges.

In March, President Trump announced his decision to block imports by imposing “reciprocal tax” against countries using tariffs on American products. The objective was to trigger the revival of the American manufacturing sector. Through a Presidential Proclamation, import tariffs of 25 per cent and 10 per cent were imposed on steel and aluminium, by invoking the provisions of Section 232 of the Trade Expansion Act of 1962. This provision allows the Administration to take measures to protect domestic industries for “national defence” and “national security”.

India was among the countries adversely affected by increased import tariffs on steel and aluminium. Indian exporters faced an additional burden of $241 million arising from the proposed import duties, which was nearly 20 per cent of their export realisations in calendar year 2017.

Until 2015-16, the United States was one of the largest markets for the Indian industry, with an export share of above 8 per cent. In the subsequent years, exports declined precipitously, and the export share dipped to less than half in the subsequent years.

With its exports to one of the world’s largest steel markets already on a down-hill, Indian steel industry, thus faced an uncertain future.

Like most affected countries, India tried to initiate negotiations with the US government by announcing retaliatory measures. In May, India submitted a notification in the WTO, indicating that tariffs on 20 products imported from the US would be increased.

Included in this list were agricultural products like soya beans and palmolein, and the American icon, Harley Davidson motorcycles. In a later notification in June, India increased the list to 30 products, but subsequently, Harley Davidson was taken off the list.

Although the increase in import duties were to take effect from August 4, this action was deferred, presumably because of the two-by-two dialogue between India and the US, which was held in the third week of August.

While India’s position has been to find a negotiated solution to the trade frictions, the US Administration has adopted an aggressive stance towards India and other trade partners, which was underlined by President Trump.

Yet another evidence of this stance was the increase in anti-dumping actions against India in 2018. Until mid-November, the US Customs and Border Protection had taken anti-dumping actions against 27 products exported by India, the highest in recent years.

Interestingly, a majority of these products included those from the iron and steel industry. This shows that the injury to the Indian industry that began with the tariff hikes in March, was heightened by the anti-dumping action.

The most recent of US actions against India was the Presidential Proclamation of October 30 (Proclamation 9813) “To Modify the List of Products Eligible for Duty-Free Treatment Under the Generalized System of Preferences”.

This Proclamation gave a list of products from the developing countries, which would not receive duty-free access into the United States market from November 1, 2018, that they had hitherto enjoyed under the Generalized System of Preferences (GSP).

The GSP was introduced in 1971 after the second session of the United Nations Conference on Trade and Development (UNCTAD) had unanimously adopted it in 1968. Under the GSP, developing countries’ exports were granted duty-free access by the developed countries. Developed countries thus granted unilateral trade concessions to the developing countries for increasing their exports.

The US Trade Administration annually reviews the GSP preferences, examining whether exports from developing countries conform to Competitive Need Limitations (CNL).

A developing country can lose its GSP benefits on any product if the CNLs are exceeded. Two measures are adopted for assessing CNLs: import of a product from a beneficiary developing country accounts for 50 per cent or more of the total imports of the product; or imports exceed a certain dollar value, which was set at $180 million in 2017.

Enforcement of CNLs is subject to waivers, the main being the de minimis waiver. This waiver sets a floor for the value of imported products below which CNLs cannot be enforced. In 2017, the floor was set at $23.5 million.

In its current year’s review, the US identified 94 products from 16 countries, which would lose GSP benefits from November 1, 2018. This list included 50 products imported from India, by far the largest number for any GSP beneficiary.

The list of products targeting imports from India are all relatively low-value products; more than half of the 50 products had import values of less than $1 million in 2017.

The product with the highest import value in 2017, hand-loomed carpet and other textile floor coverings, was just $10.3 million, way below the CNL threshold of $180 million. The Indian products for which US has withdrawn GSP benefits, clearly qualify for de minimis waiver, since their import values were below the threshold of $23.5 million in 2017.

It is time that the government of India protects the interests of the domestic manufacturing industry from the increasingly protectionist American Administration.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-battling-against-us-protectionism-2687311">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The year 2018 has been an exceptional year for India-US economic relations. Trade tensions triggered by protectionist measures taken by the US Administration following the show of aggressive intent by President Donald Trump against the major economies, has left India in a piquant situation.

The year 2018 has been an exceptional year for India-US economic relations. Trade tensions triggered by protectionist measures taken by the US Administration following the show of aggressive intent by President Donald Trump against the major economies, has left India in a piquant situation. While several of those targeted have either adopted retaliatory measures or have decided to concede ground to the largest economic power, India seems to have been caught between the imperatives of maintaining a policy of non-confrontation with its strategic partner, on the one hand, and to protect the interests of domestic manufacturing industry, especially when the industry is facing some of the most serious challenges. In March, President Trump announced his decision to block imports by imposing “reciprocal tax” against countries using tariffs on American products. The objective was to trigger the revival of the American manufacturing sector. Through a Presidential Proclamation, import tariffs of 25 per cent and 10 per cent were imposed on steel and aluminium, by invoking the provisions of Section 232 of the Trade Expansion Act of 1962. This provision allows the Administration to take measures to protect domestic industries for “national defence” and “national security”. India was among the countries adversely affected by increased import tariffs on steel and aluminium. Indian exporters faced an additional burden of $241 million arising from the proposed import duties, which was nearly 20 per cent of their export realisations in calendar year 2017. Until 2015-16, the United States was one of the largest markets for the Indian industry, with an export share of above 8 per cent. In the subsequent years, exports declined precipitously, and the export share dipped to less than half in the subsequent years. With its exports to one of the world’s largest steel markets already on a down-hill, Indian steel industry, thus faced an uncertain future. Like most affected countries, India tried to initiate negotiations with the US government by announcing retaliatory measures. In May, India submitted a notification in the WTO, indicating that tariffs on 20 products imported from the US would be increased. Included in this list were agricultural products like soya beans and palmolein, and the American icon, Harley Davidson motorcycles. In a later notification in June, India increased the list to 30 products, but subsequently, Harley Davidson was taken off the list. Although the increase in import duties were to take effect from August 4, this action was deferred, presumably because of the two-by-two dialogue between India and the US, which was held in the third week of August. While India’s position has been to find a negotiated solution to the trade frictions, the US Administration has adopted an aggressive stance towards India and other trade partners, which was underlined by President Trump. Yet another evidence of this stance was the increase in anti-dumping actions against India in 2018. Until mid-November, the US Customs and Border Protection had taken anti-dumping actions against 27 products exported by India, the highest in recent years. Interestingly, a majority of these products included those from the iron and steel industry. This shows that the injury to the Indian industry that began with the tariff hikes in March, was heightened by the anti-dumping action. The most recent of US actions against India was the Presidential Proclamation of October 30 (Proclamation 9813) “To Modify the List of Products Eligible for Duty-Free Treatment Under the Generalized System of Preferences”. This Proclamation gave a list of products from the developing countries, which would not receive duty-free access into the United States market from November 1, 2018, that they had hitherto enjoyed under the Generalized System of Preferences (GSP). The GSP was introduced in 1971 after the second session of the United Nations Conference on Trade and Development (UNCTAD) had unanimously adopted it in 1968. Under the GSP, developing countries’ exports were granted duty-free access by the developed countries. Developed countries thus granted unilateral trade concessions to the developing countries for increasing their exports. The US Trade Administration annually reviews the GSP preferences, examining whether exports from developing countries conform to Competitive Need Limitations (CNL). A developing country can lose its GSP benefits on any product if the CNLs are exceeded. Two measures are adopted for assessing CNLs: import of a product from a beneficiary developing country accounts for 50 per cent or more of the total imports of the product; or imports exceed a certain dollar value, which was set at $180 million in 2017. Enforcement of CNLs is subject to waivers, the main being the de minimis waiver. This waiver sets a floor for the value of imported products below which CNLs cannot be enforced. In 2017, the floor was set at $23.5 million. In its current year’s review, the US identified 94 products from 16 countries, which would lose GSP benefits from November 1, 2018. This list included 50 products imported from India, by far the largest number for any GSP beneficiary. The list of products targeting imports from India are all relatively low-value products; more than half of the 50 products had import values of less than $1 million in 2017. The product with the highest import value in 2017, hand-loomed carpet and other textile floor coverings, was just $10.3 million, way below the CNL threshold of $180 million. The Indian products for which US has withdrawn GSP benefits, clearly qualify for de minimis waiver, since their import values were below the threshold of $23.5 million in 2017. It is time that the government of India protects the interests of the domestic manufacturing industry from the increasingly protectionist American Administration. (This article was originally published on 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)

Battling against US protectionism

Asia-Pacific leaders failed to agree on a communique at a summit in Papua New Guinea on Sunday for the first time in their history as deep divisions between the United States and China over trade and investment stymied cooperation.

Competition between the United States and China over the Pacific was also thrown into focus with the United States and its Western allies launching a coordinated response to China's Belt and Road programme.

"You know the two big giants in the room," Papua New Guinea (PNG) Prime Minister Peter O`Neill said at a closing news conference, when asked which of the 21 members of the Asia-Pacific Economic Cooperation (APEC) group could not agree.

O'Neill, who was chairman of the meeting, said the sticking point was over whether mention of the World Trade Organization and its possible reform should be in the Leaders'&nbsp;Declaration.

"APEC has got no charter over World Trade Organization, that is a fact. Those matters can be raised at the World Trade Organization."

The multilateral trade order that APEC was established in 1989 to protect is crumbling as Chinese assertiveness in the Pacific and US tariffs strain relations in the region and divide loyalties.

A Leaders'&nbsp;Declaration has been issued after every annual APEC leaders` meeting since the first in 1993, the group`s website shows.&nbsp;

O'Neill said that as APEC host, he would release a Chairman`s Statement, though it was not clear when.

US President Donald Trump did not attend the meeting and nor did his Russian counterpart, Vladimir Putin.

US Vice President Mike Pence attended instead of Trump.

Chinese President Xi Jinping arrived to great fanfare on Thursday and was feted by PNG officials. He stoked Western concern on Friday when he met Pacific island leaders to pitch his Belt and Road initiative.

The United States and its allies, Japan, Australia and New Zealand, countered on Sunday with a $1.7 billion plan to deliver reliable electricity and the internet to PNG.

Pacific theatre

Wang Xiaolong, a senior economic official with China`s APEC delegation, said of the failure to agree on a joint statement that it was "not exactly a sticking point between any particular two countries".

Most members affirmed their commitment to preserving the multilateral trading system and supported a robust and well-functioning WTO, he said.

"Frankly speaking, we are in a very early stage of those discussions and different countries have different ideas as to how to take that process forward," Wang said.

One diplomat involved in the negotiations said tension between the US&nbsp;and China, bubbling all week, erupted when the Chinese government`s top diplomat, Wang Yi, objected during a leaders` retreat to two paragraphs in a draft document seen by Reuters.

One mentioned opposing "unfair trade practices" and reforming the WTO, while another concerned sustainable development.

"These two countries were pushing each other so much that the chair couldn`t see an option to bridge them," said the diplomat, speaking on condition of anonymity.&nbsp;

"China was angered that the reference to WTO blamed a country for unfair trade practices."

Pence said in a blunt speech on Saturday there would be no end to US&nbsp;tariffs on $250 billion of Chinese goods until China changed its ways. On Sunday, as he left the PNG capital of Port Moresby, he listed US&nbsp;differences with China.

"They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights," Pence told reporters.

Pence also took direct aim at Xi`s signature Belt and Road initiative, saying in his speech countries should not accept debt that compromised their sovereignty.&nbsp;

"We do not offer a constricting belt or a one-way road," he said.&nbsp;

Centre of attention

The Belt and Road plan was first proposed in 2013 to expand land and sea links between Asia, Africa and Europe, with billions of dollars in infrastructure investment from China.

APEC host PNG is home to 8 million people, four-fifths of whom live outside urban areas and with poor infrastructure, and found itself feted by superpowers.

Xi opened a Beijing-funded boulevard, while Pence talked of a 400-year old King James Bible in the PNG parliament that he had played a role in bringing to the country.

Australia, a staunch US&nbsp;ally, has for decades enjoyed largely unrivalled influence among Pacific island nations. China has recently turned its attention to the region with a raft of bilateral financing agreements to often distressed economies.&nbsp;

PNG Foreign Minister Rimbink Pato said his country did not need to pick sides.

"For us, we welcome Chinese investment, we welcome US&nbsp;investment. Our foreign policy is to be friends of all, enemies of none." 
&nbsp;

Asia-Pacific leaders failed to agree on a communique at a summit in Papua New Guinea on Sunday for the first time in their history as deep divisions between the United States and China over trade and investment stymied cooperation.

Asia-Pacific leaders failed to agree on a communique at a summit in Papua New Guinea on Sunday for the first time in their history as deep divisions between the United States and China over trade and investment stymied cooperation. Competition between the United States and China over the Pacific was also thrown into focus with the United States and its Western allies launching a coordinated response to China's Belt and Road programme. "You know the two big giants in the room," Papua New Guinea (PNG) Prime Minister Peter O`Neill said at a closing news conference, when asked which of the 21 members of the Asia-Pacific Economic Cooperation (APEC) group could not agree. O'Neill, who was chairman of the meeting, said the sticking point was over whether mention of the World Trade Organization and its possible reform should be in the Leaders' Declaration. "APEC has got no charter over World Trade Organization, that is a fact. Those matters can be raised at the World Trade Organization." The multilateral trade order that APEC was established in 1989 to protect is crumbling as Chinese assertiveness in the Pacific and US tariffs strain relations in the region and divide loyalties. A Leaders' Declaration has been issued after every annual APEC leaders` meeting since the first in 1993, the group`s website shows. O'Neill said that as APEC host, he would release a Chairman`s Statement, though it was not clear when. US President Donald Trump did not attend the meeting and nor did his Russian counterpart, Vladimir Putin. US Vice President Mike Pence attended instead of Trump. Chinese President Xi Jinping arrived to great fanfare on Thursday and was feted by PNG officials. He stoked Western concern on Friday when he met Pacific island leaders to pitch his Belt and Road initiative. The United States and its allies, Japan, Australia and New Zealand, countered on Sunday with a $1.7 billion plan to deliver reliable electricity and the internet to PNG. Pacific theatre Wang Xiaolong, a senior economic official with China`s APEC delegation, said of the failure to agree on a joint statement that it was "not exactly a sticking point between any particular two countries". Most members affirmed their commitment to preserving the multilateral trading system and supported a robust and well-functioning WTO, he said. "Frankly speaking, we are in a very early stage of those discussions and different countries have different ideas as to how to take that process forward," Wang said. One diplomat involved in the negotiations said tension between the US and China, bubbling all week, erupted when the Chinese government`s top diplomat, Wang Yi, objected during a leaders` retreat to two paragraphs in a draft document seen by Reuters. One mentioned opposing "unfair trade practices" and reforming the WTO, while another concerned sustainable development. "These two countries were pushing each other so much that the chair couldn`t see an option to bridge them," said the diplomat, speaking on condition of anonymity. "China was angered that the reference to WTO blamed a country for unfair trade practices." Pence said in a blunt speech on Saturday there would be no end to US tariffs on $250 billion of Chinese goods until China changed its ways. On Sunday, as he left the PNG capital of Port Moresby, he listed US differences with China. "They begin with trade practices, with tariffs and quotas, forced technology transfers, the theft of intellectual property. It goes beyond that to freedom of navigation in the seas, concerns about human rights," Pence told reporters. Pence also took direct aim at Xi`s signature Belt and Road initiative, saying in his speech countries should not accept debt that compromised their sovereignty. "We do not offer a constricting belt or a one-way road," he said. Centre of attention The Belt and Road plan was first proposed in 2013 to expand land and sea links between Asia, Africa and Europe, with billions of dollars in infrastructure investment from China. APEC host PNG is home to 8 million people, four-fifths of whom live outside urban areas and with poor infrastructure, and found itself feted by superpowers. Xi opened a Beijing-funded boulevard, while Pence talked of a 400-year old King James Bible in the PNG parliament that he had played a role in bringing to the country. Australia, a staunch US ally, has for decades enjoyed largely unrivalled influence among Pacific island nations. China has recently turned its attention to the region with a raft of bilateral financing agreements to often distressed economies. PNG Foreign Minister Rimbink Pato said his country did not need to pick sides. "For us, we welcome Chinese investment, we welcome US investment. Our foreign policy is to be friends of all, enemies of none."

APEC fails to reach consensus as US-China divide deepens

The trade war between the US and China has heightened tensions in global markets and increased volatility in international prices, especially in some key commodities.

While the US tries to ‘correct’ its worsening trade deficit with China by raising punitive tariffs across key sectors like steel and aluminium, China has retaliated by launching tariff lines across sectors that are likely to hurt US exports the most.

However, given the highly interconnected nature of today’s trade, the repercussions of the bilateral trade war are likely to be felt multilaterally across countries, sectors and businesses.

One of the core principles of economics is that free trade can potentially benefit everyone. While the past is riddled with stories of how free trade has catapulted nations into prosperity — the most notable in the recent past being the East Asian Tigers and China — yet, there is growing evidence to suggest that free trade brings with it losers and winners.

If the redistribution of wealth between the losers and winners is drastic, this can generate resentment. This partly explains the growing backlash against free trade, especially in the West. These were the countries which benefited the most from free trade in their early stages of development in the 19th and 20th centuries.

However, towards the end of the 20th century and in the beginning of the 21st century, as the lower-income countries began gaining manufacturing competitiveness through their abundant but cheap labour, the manufacturing base of the western countries gradually began to erode as multinational corporations (MNCs) started shift their manufacturing centres to the lower income countries, like China, Vietnam and Bangladesh.

The richer countries continued to specialise in the tertiary and other highly skilled sectors, which could employ only a limited amount of the vast manufacturing labour that was now left without jobs. Thus, while free trade benefitted the richer nations as a whole, the gains from trade were captured by the top few, widening inequality in these nations.&nbsp;

The growing protectionism in the West needs to be seen in this light. Coming to the context of trade in general, the recent trade war is unlikely to be long lived. Both US and China are mutually dependent on each other. While punitive tariffs can give short-term benefits by redistributing the gains from trade, the longer solution is not to restrict free trade but use other redistributive measures, such as income or wealth taxation.

India is a small player in the global trade scenario, making up less than 2 per cent of global trade. Yet, the recent trade war is likely to have a negative fallout not just on our steel and aluminium exports but also our current account deficit (CAD) and the worsening of the rupee.

The way forward is to engage multilateral forums like the World Trade Organization (WTO), strengthening multilateralism, and using trade diplomacy with our major trading partners, notably the US and China. At the same time, steps to enhance export competitiveness need to continue, as raising labour-intensive exports is the surest way to promote sustainable growth.

Author is a research scholar at DSE

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-widening-inequality-among-nations-2686763">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The trade war between the US and China has heightened tensions in global markets and increased volatility in international prices, especially in some key commodities.

The trade war between the US and China has heightened tensions in global markets and increased volatility in international prices, especially in some key commodities. While the US tries to ‘correct’ its worsening trade deficit with China by raising punitive tariffs across key sectors like steel and aluminium, China has retaliated by launching tariff lines across sectors that are likely to hurt US exports the most. However, given the highly interconnected nature of today’s trade, the repercussions of the bilateral trade war are likely to be felt multilaterally across countries, sectors and businesses. One of the core principles of economics is that free trade can potentially benefit everyone. While the past is riddled with stories of how free trade has catapulted nations into prosperity — the most notable in the recent past being the East Asian Tigers and China — yet, there is growing evidence to suggest that free trade brings with it losers and winners. If the redistribution of wealth between the losers and winners is drastic, this can generate resentment. This partly explains the growing backlash against free trade, especially in the West. These were the countries which benefited the most from free trade in their early stages of development in the 19th and 20th centuries. However, towards the end of the 20th century and in the beginning of the 21st century, as the lower-income countries began gaining manufacturing competitiveness through their abundant but cheap labour, the manufacturing base of the western countries gradually began to erode as multinational corporations (MNCs) started shift their manufacturing centres to the lower income countries, like China, Vietnam and Bangladesh. The richer countries continued to specialise in the tertiary and other highly skilled sectors, which could employ only a limited amount of the vast manufacturing labour that was now left without jobs. Thus, while free trade benefitted the richer nations as a whole, the gains from trade were captured by the top few, widening inequality in these nations. The growing protectionism in the West needs to be seen in this light. Coming to the context of trade in general, the recent trade war is unlikely to be long lived. Both US and China are mutually dependent on each other. While punitive tariffs can give short-term benefits by redistributing the gains from trade, the longer solution is not to restrict free trade but use other redistributive measures, such as income or wealth taxation. India is a small player in the global trade scenario, making up less than 2 per cent of global trade. Yet, the recent trade war is likely to have a negative fallout not just on our steel and aluminium exports but also our current account deficit (CAD) and the worsening of the rupee. The way forward is to engage multilateral forums like the World Trade Organization (WTO), strengthening multilateralism, and using trade diplomacy with our major trading partners, notably the US and China. At the same time, steps to enhance export competitiveness need to continue, as raising labour-intensive exports is the surest way to promote sustainable growth. Author is a research scholar at DSE (This article was originally published on 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)

Widening inequality among nations

US President Donald Trump said Thursday he had "very good" talks with Chinese leader Xi Jinping on the trade conflict between the two economic giants, and meetings were being planned at the G20 summit at the end of this month.

The phone call comes as tensions between the world's two biggest economies are rising on several fronts, including commerce and security.

"Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade," Trump tweeted.

Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit in Buenos Aires.

Xi said he was "very happy" to talk to Trump again and attaches "great importance to good relations with the president", according to China's official Xinhua news agency.

The Chinese president also said he would like to meet Trump at the G20.

Disagreements on trade have "adversely affected" industries from both countries as well as global trade, Xi said.

"China does not want to see this," he said, according to Xinhua.

"The economic teams of the two countries should strengthen contact, conduct consultations on issues of mutual concern, and push for a mutually acceptable solution to China-US economic and trade issues," Xi said.

Washington and Beijing are in an increasingly high-stakes standoff over Trump's aggressive move to end what he says have been years of unfair trade practices by China, including rampant intellectual property theft, forced technology transfers and market access barriers.

Trump imposed new tariffs on roughly half of Chinese imports this summer while Beijing fired back with tariffs on most US products.

Trump said he and Xi also had "a good discussion on North Korea."

The US leader wants to maintain United Nations sanctions and pressure to compel Pyongyang to abandon its nuclear programme, even as he prepares for a second summit with North Korean leader Kim Jong Un.

Xi said the situation on the Korean peninsula has "undergone positive changes."

"It is hoped that the United States and (North Korea) will take care of each other's concerns and further advance the denuclearization of the Korean peninsula," he said, adding that "China will continue to play a constructive role."

US President Donald Trump said Thursday he had "very good" talks with Chinese leader Xi Jinping on the trade conflict between the two economic giants, and meetings were being planned at the G20 summit at the end of this month.

US President Donald Trump said Thursday he had "very good" talks with Chinese leader Xi Jinping on the trade conflict between the two economic giants, and meetings were being planned at the G20 summit at the end of this month. The phone call comes as tensions between the world's two biggest economies are rising on several fronts, including commerce and security. "Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade," Trump tweeted. Trump said trade talks were "moving along nicely" and that meetings were "being scheduled" at the G20 summit in Buenos Aires. Xi said he was "very happy" to talk to Trump again and attaches "great importance to good relations with the president", according to China's official Xinhua news agency. The Chinese president also said he would like to meet Trump at the G20. Disagreements on trade have "adversely affected" industries from both countries as well as global trade, Xi said. "China does not want to see this," he said, according to Xinhua. "The economic teams of the two countries should strengthen contact, conduct consultations on issues of mutual concern, and push for a mutually acceptable solution to China-US economic and trade issues," Xi said. Washington and Beijing are in an increasingly high-stakes standoff over Trump's aggressive move to end what he says have been years of unfair trade practices by China, including rampant intellectual property theft, forced technology transfers and market access barriers. Trump imposed new tariffs on roughly half of Chinese imports this summer while Beijing fired back with tariffs on most US products. Trump said he and Xi also had "a good discussion on North Korea." The US leader wants to maintain United Nations sanctions and pressure to compel Pyongyang to abandon its nuclear programme, even as he prepares for a second summit with North Korean leader Kim Jong Un. Xi said the situation on the Korean peninsula has "undergone positive changes." "It is hoped that the United States and (North Korea) will take care of each other's concerns and further advance the denuclearization of the Korean peninsula," he said, adding that "China will continue to play a constructive role."

Trump, Xi eye G20 talks after 'very good' phone call

Chinese Premier Li Keqiang told a visiting delegation of seven US Republican lawmakers on Thursday that he hoped their two countries can meet "halfway" amid friction over trade, security and other issues.

Relations between Washington and Beijing have grown tense since US President Donald Trump activated new tariffs on roughly half of the Chinese imports this summer while Beijing fired back with tariffs on most US products.

Some of the US lawmakers attending the meeting with Li in China's leadership compound have expressed concern over Trump's trade tactics.

"Over the past four decades, the China-US relationship has had its share of ups and downs, but, generally speaking, it has been moving forward all along," Li told the US delegation.

"We do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality," Li said.

The working relationship between the two capitals has been further tested recently by a speech by US Vice President Mike Pence accusing China of military aggression and technology theft.

On Wednesday, Washington indicted 10 Chinese, including two intelligence officers, alleging a hacking scheme to steal technology from US companies.

Li suggested it was still possible to get relations back on track.

"In this way, our two countries will be able to overcome differences and have the wisdom to overcome the obstacles and move our relationship forward on an even sounder track," he said.

Senator Lamar Alexander of Tennessee, a critic of the Trump tariffs, led the group of Republican lawmakers.

"Your country and our country are competitors but not adversaries. And we believe that with mutual respect we can continue to prosper together," Alexander told Li.

"I would like to take this time to, first introduce my delegation, second to make a request that I think will be not easy but not so hard for China to do and, third to discuss trade," Alexander said before reporters were ushered out.

This summer the senator lamented the devastating effect the tariffs were having on his home state.

Chinese Premier Li Keqiang told a visiting delegation of seven US Republican lawmakers on Thursday that he hoped their two countries can meet "halfway" amid friction over trade, security and other issues.

Chinese Premier Li Keqiang told a visiting delegation of seven US Republican lawmakers on Thursday that he hoped their two countries can meet "halfway" amid friction over trade, security and other issues. Relations between Washington and Beijing have grown tense since US President Donald Trump activated new tariffs on roughly half of the Chinese imports this summer while Beijing fired back with tariffs on most US products. Some of the US lawmakers attending the meeting with Li in China's leadership compound have expressed concern over Trump's trade tactics. "Over the past four decades, the China-US relationship has had its share of ups and downs, but, generally speaking, it has been moving forward all along," Li told the US delegation. "We do hope that China and the United States will meet each other halfway and work together in the spirit of mutual respect and equality," Li said. The working relationship between the two capitals has been further tested recently by a speech by US Vice President Mike Pence accusing China of military aggression and technology theft. On Wednesday, Washington indicted 10 Chinese, including two intelligence officers, alleging a hacking scheme to steal technology from US companies. Li suggested it was still possible to get relations back on track. "In this way, our two countries will be able to overcome differences and have the wisdom to overcome the obstacles and move our relationship forward on an even sounder track," he said. Senator Lamar Alexander of Tennessee, a critic of the Trump tariffs, led the group of Republican lawmakers. "Your country and our country are competitors but not adversaries. And we believe that with mutual respect we can continue to prosper together," Alexander told Li. "I would like to take this time to, first introduce my delegation, second to make a request that I think will be not easy but not so hard for China to do and, third to discuss trade," Alexander said before reporters were ushered out. This summer the senator lamented the devastating effect the tariffs were having on his home state.

Chinese premier meets US lawmakers amid tensions; hope two countries can meet 'halfway'

American lawmakers recently created the International Development Finance Corporation (IDFC) to finance infrastructure projects in low-income countries. The IDFC’s primary aim is to counter China’s growing influence, and it signals a dramatic new chapter in the fragile relationship between the US and China.

Tensions between the two countries have been high, as they struggle over trade, intellectual property rights and military control of the South China Sea. They are now also racing to connect the world by financing large-scale infrastructure projects such as highways, railways and ports.

The IDFC enjoyed bipartisan support and was rushed through Congress as a matter of urgency. It was initially part of the BUILD Act, which was passed by the House of Representatives. The Senate then incorporated it into the FAA Reauthorization Act and passed it by a margin of 93-6 (with one abstention). The US president, Donald Trump, signed the IDFC into law while Capitol Hill was gripped by the bitter feud over the confirmation of Brett Kavanaugh to the Supreme Court.

The 2008 financial crisis destabilised the so-called Chimerica order of the global economy, which balanced China’s export-led growth with a period of overconsumption in the US. Following the financial crisis, the Chinese government countered slackening demand from the US by financing infrastructure projects in low-income countries.

And so over the past decade, China has quietly become a leader in the construction sector and, according to some commentators, is poised to establish a global monopoly. Indeed, its signature Belt and Road Initiative (BRI) aims to integrate Asia, Africa and Europe via large-scale infrastructure projects. The World Bank has even suggested that the BRI may constitute “a new approach” to development.

Infrastructure-led connectivity 
 
The BRI is consistent with a global trend to enhance infrastructure-led connectivity. This prioritises long-distance and cross-border connections and infrastructure to link resource extraction, agribusiness and manufacturing with global markets and supply chains.

In addition to the BRI, examples from low and middle-income countries include the Greater Mekong Subregion in South-East Asia, and the Lamu Port, South Sudan, Ethiopia Transport Corridor (LAPSSET), in East Africa. While enhanced connectivity can indeed foster economic growth, it can also have harmful consequences, such as in South America where the extension of infrastructure networks in remote areas has caused rapid environmental degradation.

Nevertheless, from a realpolitik perspective, whichever country funds connective infrastructure initiatives can benefit by determining how territories are integrated into the global economy. Control of overseas ports, airports, railways and roadways can enable a country to align parts of the global economy with their own.

This explains why the race to connect the world is not limited to the US and China. The European Union has launched an initiative to invest in infrastructure that enhances its connectivity with Asia. Similarly, Japan, Australia, the UK and others in the G20 are active in the Global Infrastructure Hub, which was created to encourage private investment in connective infrastructure around the world.

The US strikes back 
 
The American IDFC differs from the EU and G20 initiatives because it signals that US policymakers intend to contain rather than compete with China. It has been granted an initial budget of $60 billion to invest in infrastructure projects in low-income countries, and this is designed to “provide countries with a robust alternative to state-directed investments by authoritarian governments”.

So how does it work? The IDFC is loosely modelled on the Chinese approach to infrastructure finance. Chinese development assistance is typically bilateral and prioritises long-term political objectives over profit. This explains why China funds infrastructure projects that institutional investors in the OECD deem too risky. The US is now taking on China by allowing the IDFC to operate in a similar fashion. Unencumbered by shareholder demands, the IDFC’s mandate is “to complement and be guided by overall United States foreign policy, development, and national security objectives”. In other words, it is meant to put politics before profit.

The question is whether this strategy really will contain China’s expanding sphere of influence.

Certainly, the IDFC needs a significantly larger budget to threaten China’s growing influence. After all, China finances multiple infrastructure projects beyond the BRI. In a recent summit with African leaders in Beijing, for example, Xi Jinping committed to invest $60 billion in the continent, independent of the BRI. Furthermore, China is the largest shareholder in the Asian Infrastructure Investment Bank and enjoys influence in the New Development Bank – both of which also pursue objectives consistent with the BRI. Multilateral investment banks such as the World Bank have also already invested in infrastructure projects that complement the BRI.

Making growth sustainable and inclusive 
 
Ultimately, then, the IDFC will be unable to limit China’s growing influence with a mere $60 billion, and China’s sphere of influence will continue to expand regardless.

But the race to connect the world is significant because it will have tremendous impacts on emerging economies that suffer from inadequate infrastructure. Indeed, this scramble between the US and China will likely accelerate economic integration in places that have historically been isolated.

Both countries prioritise geopolitical objectives over developmental outcomes, so the challenge for recipient countries is to ensure such funding and initiatives foster sustainable, inclusive growth.

Chinese investment is required by Beijing to comply with local social and environmental laws, yet many low-income countries lack strong regulations. The IDFC, meanwhile, is required to “annually evaluate and report to the Board and Congress regarding compliance with environmental, social, labor, human rights, and transparency standards”. But it is unclear what standards the IDFC will embrace in any of these fields.

The quickening race between China and the US to connect the world does present opportunities for low-income countries held back by poor infrastructure. The question is whether the “beneficiaries” can ensure that the projects are sustainable and equitable in the long-run. If they can’t, much of the infrastructure will likely just further line American and Chinese pockets.

(Seth Schindler is Senior Lecturer in Urban Development &amp; Transformation, University of Manchester; &nbsp;Juan Miguel Kanai is Lecturer in Human Geography, University of Sheffield)

(This article was originally published on DNA. Read the <a href="https://theconversation.com/us-sparks-new-development-race-with-china-but-can-it-win-105203">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

American lawmakers recently created the International Development Finance Corporation (IDFC) to finance infrastructure projects in low-income countries. The IDFC’s primary aim is to counter China’s growing influence, and it signals a dramatic new chapter in the fragile relationship between the US and China.

American lawmakers recently created the International Development Finance Corporation (IDFC) to finance infrastructure projects in low-income countries. The IDFC’s primary aim is to counter China’s growing influence, and it signals a dramatic new chapter in the fragile relationship between the US and China. Tensions between the two countries have been high, as they struggle over trade, intellectual property rights and military control of the South China Sea. They are now also racing to connect the world by financing large-scale infrastructure projects such as highways, railways and ports. The IDFC enjoyed bipartisan support and was rushed through Congress as a matter of urgency. It was initially part of the BUILD Act, which was passed by the House of Representatives. The Senate then incorporated it into the FAA Reauthorization Act and passed it by a margin of 93-6 (with one abstention). The US president, Donald Trump, signed the IDFC into law while Capitol Hill was gripped by the bitter feud over the confirmation of Brett Kavanaugh to the Supreme Court. The 2008 financial crisis destabilised the so-called Chimerica order of the global economy, which balanced China’s export-led growth with a period of overconsumption in the US. Following the financial crisis, the Chinese government countered slackening demand from the US by financing infrastructure projects in low-income countries. And so over the past decade, China has quietly become a leader in the construction sector and, according to some commentators, is poised to establish a global monopoly. Indeed, its signature Belt and Road Initiative (BRI) aims to integrate Asia, Africa and Europe via large-scale infrastructure projects. The World Bank has even suggested that the BRI may constitute “a new approach” to development. Infrastructure-led connectivity The BRI is consistent with a global trend to enhance infrastructure-led connectivity. This prioritises long-distance and cross-border connections and infrastructure to link resource extraction, agribusiness and manufacturing with global markets and supply chains. In addition to the BRI, examples from low and middle-income countries include the Greater Mekong Subregion in South-East Asia, and the Lamu Port, South Sudan, Ethiopia Transport Corridor (LAPSSET), in East Africa. While enhanced connectivity can indeed foster economic growth, it can also have harmful consequences, such as in South America where the extension of infrastructure networks in remote areas has caused rapid environmental degradation. Nevertheless, from a realpolitik perspective, whichever country funds connective infrastructure initiatives can benefit by determining how territories are integrated into the global economy. Control of overseas ports, airports, railways and roadways can enable a country to align parts of the global economy with their own. This explains why the race to connect the world is not limited to the US and China. The European Union has launched an initiative to invest in infrastructure that enhances its connectivity with Asia. Similarly, Japan, Australia, the UK and others in the G20 are active in the Global Infrastructure Hub, which was created to encourage private investment in connective infrastructure around the world. The US strikes back The American IDFC differs from the EU and G20 initiatives because it signals that US policymakers intend to contain rather than compete with China. It has been granted an initial budget of $60 billion to invest in infrastructure projects in low-income countries, and this is designed to “provide countries with a robust alternative to state-directed investments by authoritarian governments”. So how does it work? The IDFC is loosely modelled on the Chinese approach to infrastructure finance. Chinese development assistance is typically bilateral and prioritises long-term political objectives over profit. This explains why China funds infrastructure projects that institutional investors in the OECD deem too risky. The US is now taking on China by allowing the IDFC to operate in a similar fashion. Unencumbered by shareholder demands, the IDFC’s mandate is “to complement and be guided by overall United States foreign policy, development, and national security objectives”. In other words, it is meant to put politics before profit. The question is whether this strategy really will contain China’s expanding sphere of influence. Certainly, the IDFC needs a significantly larger budget to threaten China’s growing influence. After all, China finances multiple infrastructure projects beyond the BRI. In a recent summit with African leaders in Beijing, for example, Xi Jinping committed to invest $60 billion in the continent, independent of the BRI. Furthermore, China is the largest shareholder in the Asian Infrastructure Investment Bank and enjoys influence in the New Development Bank – both of which also pursue objectives consistent with the BRI. Multilateral investment banks such as the World Bank have also already invested in infrastructure projects that complement the BRI. Making growth sustainable and inclusive Ultimately, then, the IDFC will be unable to limit China’s growing influence with a mere $60 billion, and China’s sphere of influence will continue to expand regardless. But the race to connect the world is significant because it will have tremendous impacts on emerging economies that suffer from inadequate infrastructure. Indeed, this scramble between the US and China will likely accelerate economic integration in places that have historically been isolated. Both countries prioritise geopolitical objectives over developmental outcomes, so the challenge for recipient countries is to ensure such funding and initiatives foster sustainable, inclusive growth. Chinese investment is required by Beijing to comply with local social and environmental laws, yet many low-income countries lack strong regulations. The IDFC, meanwhile, is required to “annually evaluate and report to the Board and Congress regarding compliance with environmental, social, labor, human rights, and transparency standards”. But it is unclear what standards the IDFC will embrace in any of these fields. The quickening race between China and the US to connect the world does present opportunities for low-income countries held back by poor infrastructure. The question is whether the “beneficiaries” can ensure that the projects are sustainable and equitable in the long-run. If they can’t, much of the infrastructure will likely just further line American and Chinese pockets. (Seth Schindler is Senior Lecturer in Urban Development & Transformation, University of Manchester; Juan Miguel Kanai is Lecturer in Human Geography, University of Sheffield) (This article was originally published on 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)

US sparks new development race with China – but can it win?

The United States, China and several other countries on Saturday agreed in principle to guidelines on preventing unplanned warplane encounters, the latest effort to avoid military confrontations in Asia.

Risks of chance encounters between military aircraft spiralling out of control have risen in recent years as Beijing becomes ever more assertive in the South China Sea, stoking tensions with rival claimants in Southeast Asia.

While not a claimant, Washington has also been drawn into the row as it has traditionally been the dominant naval and air power in the Asia-Pacific.

The Association of Southeast Asian Nations (ASEAN) agreed to guidelines on managing air encounters on Friday, at the annual meeting of the 10-member bloc's defence ministers.

US Defense Secretary Jim Mattis and his Chinese counterpart General Wei Fenghe were among eight defence chiefs from outside ASEAN to give their "in-principle" backing to the guidelines, a joint ministerial statement said.

India, Russia, Japan, South Korea, Australia and New Zealand have also given broad backing to the new framework, Singapore Defence Minister Ng Eng Hen said.

Any incident involving military jets can lead to a "cascade of activities that you cannot control," warned Ng, who hosted the meetings.

"You can have a gung-ho pilot who switches off everything and decides 'I'm going to intimidate,'" he told reporters.

"That would be a disaster."

The guidelines set norms of behaviour for pilots to prevent untoward encounters. These include always having two-way communications open and adhering to existing aviation conventions.

The new rules follow similar guidelines already in place to prevent naval vessels from unintended mishaps at sea.

Early last year, a Chinese warplane buzzed a US Navy surveillance aircraft over the South China Sea, with the US claiming their plane was in international air space.

In 2016, a Chinese fighter aircraft also intercepted a US Navy surveillance plane over the sea.

Four ASEAN members -- Brunei, Malaysia, the Philippines and Vietnam -- have conflicting claims in the South China Sea with Beijing.

China claims sovereignty over almost the entire area, including waters near the shores of smaller countries.

The United States, China and several other countries on Saturday agreed in principle to guidelines on preventing unplanned warplane encounters, the latest effort to avoid military confrontations in Asia.

The United States, China and several other countries on Saturday agreed in principle to guidelines on preventing unplanned warplane encounters, the latest effort to avoid military confrontations in Asia. Risks of chance encounters between military aircraft spiralling out of control have risen in recent years as Beijing becomes ever more assertive in the South China Sea, stoking tensions with rival claimants in Southeast Asia. While not a claimant, Washington has also been drawn into the row as it has traditionally been the dominant naval and air power in the Asia-Pacific. The Association of Southeast Asian Nations (ASEAN) agreed to guidelines on managing air encounters on Friday, at the annual meeting of the 10-member bloc's defence ministers. US Defense Secretary Jim Mattis and his Chinese counterpart General Wei Fenghe were among eight defence chiefs from outside ASEAN to give their "in-principle" backing to the guidelines, a joint ministerial statement said. India, Russia, Japan, South Korea, Australia and New Zealand have also given broad backing to the new framework, Singapore Defence Minister Ng Eng Hen said. Any incident involving military jets can lead to a "cascade of activities that you cannot control," warned Ng, who hosted the meetings. "You can have a gung-ho pilot who switches off everything and decides 'I'm going to intimidate,'" he told reporters. "That would be a disaster." The guidelines set norms of behaviour for pilots to prevent untoward encounters. These include always having two-way communications open and adhering to existing aviation conventions. The new rules follow similar guidelines already in place to prevent naval vessels from unintended mishaps at sea. Early last year, a Chinese warplane buzzed a US Navy surveillance aircraft over the South China Sea, with the US claiming their plane was in international air space. In 2016, a Chinese fighter aircraft also intercepted a US Navy surveillance plane over the sea. Four ASEAN members -- Brunei, Malaysia, the Philippines and Vietnam -- have conflicting claims in the South China Sea with Beijing. China claims sovereignty over almost the entire area, including waters near the shores of smaller countries.

US, China back military air rules to avoid mishaps

Beijing is not a currency manipulator but China's exchange rate practices and the yuan's recent decline are of "particular concern," US Treasury Steven Mnuchin said.

<a href="http://www.wionews.com/business-economy/full-blown-us-china-trade-war-will-slow-global-growth-by-less-than-1-imf-170313">Also Read:&nbsp;Full-blown US-China trade war will slow global growth by less than 1%, declares&nbsp;IMF</a>

In putting Beijing and five other US trading partners on notice, the Treasury again refrained from escalating a fight over China's currency as US President&nbsp;Trump had once pledged to do on the campaign trail.

"Of particular concern are China's lack of currency transparency and the recent weakness in its currency," Mnuchin said in releasing a twice-yearly report to Congress on how country's manage exchange rates and trade.

"These pose major challenges to achieving fairer and more balanced trade and we will continue to monitor and review China's currency practices, including through ongoing discussions with the People's Bank of China."

Washington has long argued that China keeps its currency artificially low to make its exports more competitive but in recent years the yuan or renminbi (RMB) has strengthened and is viewed by economists as more in line with economic fundamentals.

Still, as US interest rates have risen, the US dollar has strengthened further, which makes American exports more expensive.

Washington and Beijing are locked in a&nbsp;battle over the yawning US-China trade deficit, which Trump describes as a "job killer".&nbsp;

Washington has slapped punishing tariffs on about half of all China's goods exports to the United States, with talks to resolve the matter at an apparent impasse.

Trump in April 2017 dropped his campaign pledge to label Beijing a currency manipulator, telling The Wall Street Journal that Beijing was not intervening to weaken its currency.

Beijing is not a currency manipulator but China's exchange rate practices and the yuan's recent decline are of "particular concern," US Treasury Steven Mnuchin said.

Beijing is not a currency manipulator but China's exchange rate practices and the yuan's recent decline are of "particular concern," US Treasury Steven Mnuchin said. Also Read: Full-blown US-China trade war will slow global growth by less than 1%, declares IMF In putting Beijing and five other US trading partners on notice, the Treasury again refrained from escalating a fight over China's currency as US President Trump had once pledged to do on the campaign trail. "Of particular concern are China's lack of currency transparency and the recent weakness in its currency," Mnuchin said in releasing a twice-yearly report to Congress on how country's manage exchange rates and trade. "These pose major challenges to achieving fairer and more balanced trade and we will continue to monitor and review China's currency practices, including through ongoing discussions with the People's Bank of China." Washington has long argued that China keeps its currency artificially low to make its exports more competitive but in recent years the yuan or renminbi (RMB) has strengthened and is viewed by economists as more in line with economic fundamentals. Still, as US interest rates have risen, the US dollar has strengthened further, which makes American exports more expensive. Washington and Beijing are locked in a battle over the yawning US-China trade deficit, which Trump describes as a "job killer". Washington has slapped punishing tariffs on about half of all China's goods exports to the United States, with talks to resolve the matter at an apparent impasse. Trump in April 2017 dropped his campaign pledge to label Beijing a currency manipulator, telling The Wall Street Journal that Beijing was not intervening to weaken its currency.

Concerned over China's lack of currency transparency: US

us-china

Us China, News on Us China, stories on Us China, articles on Us China, Us China stories at Wion, Us China news, Us China latest news

us china