The economic fallout of the coronavirus pandemic for Gulf states has done far more than play havoc with their revenue base and fiscal household. It has propelled massive structural change to the top of their agenda in ways that economic diversification plans had not accounted for.

Leave aside whether Gulf states can continue to focus on high-profile, attention-grabbing projects like Neom, Saudi Arabia’s $500 billion&nbsp;21st century futuristic city on the Red Sea.

Gulf rulers’ to-do list, if they want to get things right, is long and expensive without the burden of trophy projects. It involves economic as well as social and ultimately political change.

Transparency and accurate and detailed public reporting go to the core of these changes.

They also are key to decisions by investors, economists, and credit rating companies at a time when Gulf states’ economic outlook is in question. Many complain that delays in GDP reporting and lack of easy access to statistics complicates their decision-making.

Nonetheless, if there is one thing autocratic Gulf governments have going for themselves, beyond substantial financial reserves, it is public confidence in the way they handled the pandemic, despite the fact that they failed to initially recognize crowded living circumstances of migrant workers as a super spreader.

Most governments acted early and decisively with lockdowns and curfews, testing, border closures, repatriation of nationals abroad, and, in Saudi Arabia, suspension of pilgrimages.

To be sure, Gulf countries, and particularly Saudi Arabia that receives millions of Muslim pilgrims from across the globe each year, have a long-standing history of dealing with epidemics. Like Singapore, South Korea, and Taiwan, they were better prepared than Western nations.

History persuaded the kingdom to ban the umrah, the lesser Muslim pilgrimage to Mecca, in late February, days before the first case of a COVID-19 infection emerged on Saudi soil.

Beyond public health concerns, Saudi Arabia had an additional reason to get the pandemic right. It offered the kingdom not only an opportunity to globally polish its image, badly tarnished by human rights abuses, power grabs, and the killing of journalist Jamal Khashoggi, but also to retain religious influence despite the interruption in the flow of pilgrims to the kingdom.

“Saudi Arabia is still a reference for many Muslim communities around the world,” said Yasmine Farouk, a scholar of Saudi Arabia at the Carnegie Endowment for International Peace.

It also allowed Saudi Arabia to set the record straight following criticism of its handling of the Middle East Respiratory Syndrome (MERS) in 2012 when the kingdom became the epidemic’s epicenter and in 2009 when it was hit by the H1N1 virus.

Saudi Arabia is also blamed for contributing to a public health catastrophe in Yemen with its frequent indiscriminate bombings.

A country in ruins as a result of the military intervention, Yemen has grappled for the past four years with a cholera epidemic on the kingdom’s borders.

Trust in Gulf states’ handling of the current pandemic was bolstered by degrees of transparency on the development of the disease in daily updates in the number of casualties and fatalities.

It was further boosted by a speech by King Salman as soon as the pandemic hit the kingdom in which he announced a raft of measures to counter the disease and support the economy as well as assurances by agriculture minister Abdulrahman al-Fadli that the crisis would not affect food supplies.

Farouk suggested that government instructions during the pandemic were followed because of “trust in the government, the expertise and the experience of the government [and] trust in the religious establishment, which actually was following the technical decisions of the government.”

To be sure, Farouk acknowledged, the regime’s coercive nature gave the public little choice.

The limits of government transparency were evident in the fact that authorities were less forthcoming with details of public spending on the pandemic and insight into available medical equipment like ventilators and other supplies such as testing kits.

Some Gulf states have started publishing the daily and total number of swabs but have yet to clarify whether these figures include multiple swabbings of the same person.

“It is likely that publics in the Middle East will look back at who was it that gave them reliable information, who was it who was there for them,” said political scientist Nathan Brown.

The question is whether governments will conclude that transparency will be needed to maintain public confidence as they are forced to rewrite social contracts that were rooted in concepts of a cradle-to-grave welfare state but will have to involve greater burden-sharing.

Gulf governments have so far said little about burden-sharing being allocated equitably across social classes nor has there been transparency on what drives investment decisions by sovereign wealth funds in a time of crisis and changing economic outlook.

Speaking to the Financial Times, a Gulf banker warned that the Saudi Crown Prince Mohammed bin Salman “needs to be careful what he spends on . . . Joe Public will be watching.”

Headed by Prince Mohammed, the kingdom’s sovereign wealth fund has gone on a $7.7 billion USD shopping spree buying stakes in major Western blue chips, including four oil majors: Boeing, Citigroup, Disney, and Facebook. The Public Investment Fund is also funding a bid for English soccer club Newcastle United.

The banker suggested that Saudi nationals would not appreciate “millionaire footballer salaries being paid for by VAT (value-added tax) on groceries.” He was referring to this month’s hiking of sales taxes in the kingdom from five to 15 per cent.

The fragility and fickleness of public trust were on display for the world to see in Britain’s uproar about Dominic Cummings, a close aide to Prime Minister Boris Johnson, who violated lockdown instructions for personal reasons. Johnson is struggling to fight off demands for Mr Cummings’ dismissal.

To be sure, senior government officials and business executives in the Gulf have cautioned of hard times to come.

A recent Dubai Chamber of Commerce and Industry survey of CEOs predicted that 70 per cent of the United Arab Emirates’ companies would go out of business in the next six months, including half of its restaurants and hotels and three-quarters of its travel and tourism companies.

Saudi Finance Minister Mohammed Al-Jadaan warned earlier this month that the kingdom would need to take “painful” measures and look for deep spending cuts as a result of the collapse of oil prices and significantly reduced demand for oil.

Aware of sensitivities, Al-Jadaan stressed that “as long as we do not touch the basic needs of the people, all options are open.”

There was little transparency in Al-Jadaan’s statements on what the impact would be on employment-seeking Saudi nationals in a labour market where fewer migrant workers would be available for jobs that Saudis have long been unwilling to accept.

It was a missed opportunity considering the 286 per cent increase in the number of Saudis flocking to work for delivery services.

The increase was fueled by an offer by Hadaf, the Saudi Human Resources Development Fund, to pay drivers $800&nbsp;a month, as well as a newly-found embrace of volunteerism across the Gulf.

The surge offered authorities building blocks to frame expectations at a time when the kingdom’s official unemployment rate of 12 per cent is likely to rise.

It suggested a public acknowledgement of the fact that well-paying, cushy government positions may no longer be as available as they were in the past as well as the fact that lesser jobs are no less honourable forms of employment.

That may be the silver lining as Gulf states feel the pressure to reinvent themselves in a world emerging from a pandemic that potentially will redraw social, economic, and political maps. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp; 
&nbsp;

The economic fallout of the coronavirus pandemic for Gulf states has done far more than play havoc with their revenue base and fiscal household. It has propelled massive structural change to the top of their agenda in ways that economic diversification plans had not accounted for.

The economic fallout of the coronavirus pandemic for Gulf states has done far more than play havoc with their revenue base and fiscal household. It has propelled massive structural change to the top of their agenda in ways that economic diversification plans had not accounted for. Leave aside whether Gulf states can continue to focus on high-profile, attention-grabbing projects like Neom, Saudi Arabia’s $500 billion 21st century futuristic city on the Red Sea. Gulf rulers’ to-do list, if they want to get things right, is long and expensive without the burden of trophy projects. It involves economic as well as social and ultimately political change. Transparency and accurate and detailed public reporting go to the core of these changes. They also are key to decisions by investors, economists, and credit rating companies at a time when Gulf states’ economic outlook is in question. Many complain that delays in GDP reporting and lack of easy access to statistics complicates their decision-making. Nonetheless, if there is one thing autocratic Gulf governments have going for themselves, beyond substantial financial reserves, it is public confidence in the way they handled the pandemic, despite the fact that they failed to initially recognize crowded living circumstances of migrant workers as a super spreader. Most governments acted early and decisively with lockdowns and curfews, testing, border closures, repatriation of nationals abroad, and, in Saudi Arabia, suspension of pilgrimages. To be sure, Gulf countries, and particularly Saudi Arabia that receives millions of Muslim pilgrims from across the globe each year, have a long-standing history of dealing with epidemics. Like Singapore, South Korea, and Taiwan, they were better prepared than Western nations. History persuaded the kingdom to ban the umrah, the lesser Muslim pilgrimage to Mecca, in late February, days before the first case of a COVID-19 infection emerged on Saudi soil. Beyond public health concerns, Saudi Arabia had an additional reason to get the pandemic right. It offered the kingdom not only an opportunity to globally polish its image, badly tarnished by human rights abuses, power grabs, and the killing of journalist Jamal Khashoggi, but also to retain religious influence despite the interruption in the flow of pilgrims to the kingdom. “Saudi Arabia is still a reference for many Muslim communities around the world,” said Yasmine Farouk, a scholar of Saudi Arabia at the Carnegie Endowment for International Peace. It also allowed Saudi Arabia to set the record straight following criticism of its handling of the Middle East Respiratory Syndrome (MERS) in 2012 when the kingdom became the epidemic’s epicenter and in 2009 when it was hit by the H1N1 virus. Saudi Arabia is also blamed for contributing to a public health catastrophe in Yemen with its frequent indiscriminate bombings. A country in ruins as a result of the military intervention, Yemen has grappled for the past four years with a cholera epidemic on the kingdom’s borders. Trust in Gulf states’ handling of the current pandemic was bolstered by degrees of transparency on the development of the disease in daily updates in the number of casualties and fatalities. It was further boosted by a speech by King Salman as soon as the pandemic hit the kingdom in which he announced a raft of measures to counter the disease and support the economy as well as assurances by agriculture minister Abdulrahman al-Fadli that the crisis would not affect food supplies. Farouk suggested that government instructions during the pandemic were followed because of “trust in the government, the expertise and the experience of the government [and] trust in the religious establishment, which actually was following the technical decisions of the government.” To be sure, Farouk acknowledged, the regime’s coercive nature gave the public little choice. The limits of government transparency were evident in the fact that authorities were less forthcoming with details of public spending on the pandemic and insight into available medical equipment like ventilators and other supplies such as testing kits. Some Gulf states have started publishing the daily and total number of swabs but have yet to clarify whether these figures include multiple swabbings of the same person. “It is likely that publics in the Middle East will look back at who was it that gave them reliable information, who was it who was there for them,” said political scientist Nathan Brown. The question is whether governments will conclude that transparency will be needed to maintain public confidence as they are forced to rewrite social contracts that were rooted in concepts of a cradle-to-grave welfare state but will have to involve greater burden-sharing. Gulf governments have so far said little about burden-sharing being allocated equitably across social classes nor has there been transparency on what drives investment decisions by sovereign wealth funds in a time of crisis and changing economic outlook. Speaking to the Financial Times, a Gulf banker warned that the Saudi Crown Prince Mohammed bin Salman “needs to be careful what he spends on . . . Joe Public will be watching.” Headed by Prince Mohammed, the kingdom’s sovereign wealth fund has gone on a $7.7 billion USD shopping spree buying stakes in major Western blue chips, including four oil majors: Boeing, Citigroup, Disney, and Facebook. The Public Investment Fund is also funding a bid for English soccer club Newcastle United. The banker suggested that Saudi nationals would not appreciate “millionaire footballer salaries being paid for by VAT (value-added tax) on groceries.” He was referring to this month’s hiking of sales taxes in the kingdom from five to 15 per cent. The fragility and fickleness of public trust were on display for the world to see in Britain’s uproar about Dominic Cummings, a close aide to Prime Minister Boris Johnson, who violated lockdown instructions for personal reasons. Johnson is struggling to fight off demands for Mr Cummings’ dismissal. To be sure, senior government officials and business executives in the Gulf have cautioned of hard times to come. A recent Dubai Chamber of Commerce and Industry survey of CEOs predicted that 70 per cent of the United Arab Emirates’ companies would go out of business in the next six months, including half of its restaurants and hotels and three-quarters of its travel and tourism companies. Saudi Finance Minister Mohammed Al-Jadaan warned earlier this month that the kingdom would need to take “painful” measures and look for deep spending cuts as a result of the collapse of oil prices and significantly reduced demand for oil. Aware of sensitivities, Al-Jadaan stressed that “as long as we do not touch the basic needs of the people, all options are open.” There was little transparency in Al-Jadaan’s statements on what the impact would be on employment-seeking Saudi nationals in a labour market where fewer migrant workers would be available for jobs that Saudis have long been unwilling to accept. It was a missed opportunity considering the 286 per cent increase in the number of Saudis flocking to work for delivery services. The increase was fueled by an offer by Hadaf, the Saudi Human Resources Development Fund, to pay drivers $800 a month, as well as a newly-found embrace of volunteerism across the Gulf. The surge offered authorities building blocks to frame expectations at a time when the kingdom’s official unemployment rate of 12 per cent is likely to rise. It suggested a public acknowledgement of the fact that well-paying, cushy government positions may no longer be as available as they were in the past as well as the fact that lesser jobs are no less honourable forms of employment. That may be the silver lining as Gulf states feel the pressure to reinvent themselves in a world emerging from a pandemic that potentially will redraw social, economic, and political maps. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Lessons Gulf states have learned from coronavirus pandemic

In an era that is to be defined by 4th Industrial Revolution where Artificial Intelligence, Big Data and Internet of Things are increasingly expected to play major roles, having the advantage over 5G technology is likely to be a key determinant of an upcoming great power rivalry.&nbsp;

However, geopolitical developments during the ongoing COVID-19 pandemic is likely to either dampen or delay China's grand global 5G strategy that is also critical to Beijing’s Digital Silk Road plans. The relatively small group of nations led by the United States (US) that acted against Chinese plans in the pre-COVID period may expand as increasingly more nations are concerned about Beijing’s reliability due to its behaviour — involves accountability, responsibility and propaganda — during the current pandemic. &nbsp;

Gaining technological supremacy has been one of the key features of geopolitical rivalries in modern history, and it is no different for the ongoing US-China rivalry. Realising this, President Donald Trump has waged a global campaign against Huawei — main Chinese 5G player, other one is ZTE — since the last couple of years alleging China of 5G technology-related intellectual property theft and raised national security issues due to espionage-related concerns. Consequently, to limit Huawei’s capacity to provide 5G equipment, specifically at affordable rates, in the US and beyond, the Trump administration has announced several measures against Huawei, including the most recent one during the pandemic that restricts “Huawei’s ability to use US technology and software to design and manufacture its semiconductors abroad” as the US alleged Huawei of undermining its export control measures. &nbsp;

The US government has used rising anti-China sentiments during the pandemic domestically and externally to its advantage and imposed new restrictions. This new measure by the US is likely to impact Huawei’s R&amp;D work and raise its business costs substantially as chipmakers are not allowed to supply chips to Chinese company if they are based on the American technology; moreover, there are no Chinese technological alternatives at present. The measure will also impact the companies that are associated with Huawei components across the world, including the EU, thereby, damaging Huawei’s main international sales pitch, affordability. This action has attracted so much attention that the Chinese government has threatened to retaliate against American companies that have a big presence in China if the US continues with any such further measures. &nbsp;

While the Trump administration has been maintaining the consistent act against Huawei domestically, it has also been persuading its partners across the globe to ban Huawei in gaining access to their respective telecommunication networks. Some of its allies like Japan, Australia and New Zealand have gone forward with the US plans in banning Huawei, some like Canada and the European Union (EU) were still under discussion before the pandemic. EU member states were divided over the issue as China holds influence over several nations of the Union. Further, in disappointment to the US before the pandemic, the United Kingdom (UK) reluctantly provided limited access to Huawei some months ago. &nbsp;

Nonetheless, as the questions against China arise over its accountability towards the virus origins, reliability over the supply chains dependence and propaganda through global media blitzkrieg, the anti-Chinese lobby in the UK seems to have lapped up the opportunity to convince Boris Johnson administration to act against Huawei as British media suggests. The Financial Times last week reported that the UK government is making plans “to force a full phase-out of Huawei from Britain’s 5G networks” in the next three years. This is a strong shift in the UK’s approach towards Huawei in just a few months. &nbsp;

In the last week of January 2020, the European Commission recommended strict rules, instead of an outright ban, against any high-risk 5G suppliers including “exclusions for key assets considered as critical and sensitive”, and “strategies… to ensure the diversification of vendors”. Similarly, in February 2020, German ruling party’s members supported a position paper that called for limiting the participation of foreign vendors in 5G network rollout in a compromise as an anti-Chinese group among the Christian Democratic Union (CDU) have been piling up pressure on the Merkel administration for an outright ban of Huawei. Further, CDU’s coalition partner, Social Democratic Party, is asking for equipment suppliers’ political reliability vis-à-vis their home countries' governing system, which can dampen chances of companies like Huawei when the draft bill that asks for additional requirements from 5G network suppliers will face the parliamentary test. Handelsblatt has reported that Deutsch Telekom and Vodafone are already considering to remove Huawei equipment from the sensitive core of their networks considering domestic political preferences and rising business costs due to the US actions.&nbsp;

While these suggestions do not call for an outright ban as the US would have liked, they nonetheless are in favour of more stringent regulatory regime against the foreign vendors like Huawei. Moreover, it should come as no surprise if local EU 5G players like Nokia and Ericsson are prioritised over the foreign ones by EU member states as the industrial strategy under the new French-German COVID-19 recovery plan suggests. The French-German deal calls for strengthening “screening towards non-EU investors in strategic sectors”, and “accelerating the adaptation of state aid and competition rules” in the European competition policy. &nbsp;

Further, in sort of a policy priority, Josep Borrell Fontelles, High Representative of the EU for Foreign Affairs and Security Policy, recently in a column that was published in several media outlets suggested that the state-centric Chinese approach stands opposite to the “the EU’s multi-stakeholder approach based on respect for fundamental rights and freedoms” in the cyber domain; also, he called for avoiding dependence on China in strategic sectors. These developments suggest that Huawei’s access to most of the OECD market is likely to get restricted, which would limit China’s ambitions both politically and economically. &nbsp;

ASEAN is one region where Huawei is likely to have better run among high-value markets, except in Vietnam. While Vietnam has not banned Huawei, it claims to have developed native 5G tech through Viettel, Vietnam’s largest telecommunications company operated by the country’s defence ministry, which experts suggest provides an incentive to bypass China’s Huawei. The company has suggested that it doesn’t have plans to work with Huawei for now. The situation isn’t likely to change much as China ramps up the aggression in the South China Sea. Also, other major emerging economies like Brazil and India are yet to take a call in this regard. &nbsp;

India was one of the early countries to raise espionage-related concerns over Huawei almost a decade ago. While the government has allowed Huawei for trials, it is facing ambiguity over the issue as the country’s strategic community is seriously worried about national security issues. The situation is only likely to get tight due to ongoing border skirmishes at India-China border and also the Indian government’s plans to bring strong data protection law, which talks about localising data. &nbsp;

Moreover, there have been a couple of interesting developments over Indian 5G in the recent past. First, Airtel, which have an advocate of Huawei, has inked a $1 billion deal with Nokia — as uncertainty over Huawei’s access prevails — to modernise and expand its 4G network, which will also be used for the future 5G purposes. Second, Reliance Jio, currently India’s largest telecommunications company, claimed to have developed own in-house 5G tech. Also, Jio has proudly claimed that it is the only company in the world that doesn’t use any Chinese equipment in its 4G and 5G networks and will maintain this going forward. &nbsp;

All these events suggest the growing hardship for Chinese 5G plans across the world as it faces the campaign led by the US. As the geopolitics during the pandemic unravels, one should not expect the situation to get any better for Huawei; especially when China has ramped up the military aggression in the East China Sea, South China Sea, Taiwan Strait, Hong Kong and India-China border region. The international community — especially stakeholders at the receiving end of the Chinese aggression and the West that cares for international norms and human rights — is not likely to ease its stance anytime soon if the pandemic hostility prevails. &nbsp;

&nbsp; 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

In an era that is to be defined by 4th Industrial Revolution where Artificial Intelligence, Big Data and Internet of Things are increasingly expected to play major roles, having the advantage over 5G technology is likely to be a key determinant of an upcoming great power rivalry.

In an era that is to be defined by 4th Industrial Revolution where Artificial Intelligence, Big Data and Internet of Things are increasingly expected to play major roles, having the advantage over 5G technology is likely to be a key determinant of an upcoming great power rivalry. However, geopolitical developments during the ongoing COVID-19 pandemic is likely to either dampen or delay China's grand global 5G strategy that is also critical to Beijing’s Digital Silk Road plans. The relatively small group of nations led by the United States (US) that acted against Chinese plans in the pre-COVID period may expand as increasingly more nations are concerned about Beijing’s reliability due to its behaviour — involves accountability, responsibility and propaganda — during the current pandemic. Gaining technological supremacy has been one of the key features of geopolitical rivalries in modern history, and it is no different for the ongoing US-China rivalry. Realising this, President Donald Trump has waged a global campaign against Huawei — main Chinese 5G player, other one is ZTE — since the last couple of years alleging China of 5G technology-related intellectual property theft and raised national security issues due to espionage-related concerns. Consequently, to limit Huawei’s capacity to provide 5G equipment, specifically at affordable rates, in the US and beyond, the Trump administration has announced several measures against Huawei, including the most recent one during the pandemic that restricts “Huawei’s ability to use US technology and software to design and manufacture its semiconductors abroad” as the US alleged Huawei of undermining its export control measures. The US government has used rising anti-China sentiments during the pandemic domestically and externally to its advantage and imposed new restrictions. This new measure by the US is likely to impact Huawei’s R&D work and raise its business costs substantially as chipmakers are not allowed to supply chips to Chinese company if they are based on the American technology; moreover, there are no Chinese technological alternatives at present. The measure will also impact the companies that are associated with Huawei components across the world, including the EU, thereby, damaging Huawei’s main international sales pitch, affordability. This action has attracted so much attention that the Chinese government has threatened to retaliate against American companies that have a big presence in China if the US continues with any such further measures. While the Trump administration has been maintaining the consistent act against Huawei domestically, it has also been persuading its partners across the globe to ban Huawei in gaining access to their respective telecommunication networks. Some of its allies like Japan, Australia and New Zealand have gone forward with the US plans in banning Huawei, some like Canada and the European Union (EU) were still under discussion before the pandemic. EU member states were divided over the issue as China holds influence over several nations of the Union. Further, in disappointment to the US before the pandemic, the United Kingdom (UK) reluctantly provided limited access to Huawei some months ago. Nonetheless, as the questions against China arise over its accountability towards the virus origins, reliability over the supply chains dependence and propaganda through global media blitzkrieg, the anti-Chinese lobby in the UK seems to have lapped up the opportunity to convince Boris Johnson administration to act against Huawei as British media suggests. The Financial Times last week reported that the UK government is making plans “to force a full phase-out of Huawei from Britain’s 5G networks” in the next three years. This is a strong shift in the UK’s approach towards Huawei in just a few months. In the last week of January 2020, the European Commission recommended strict rules, instead of an outright ban, against any high-risk 5G suppliers including “exclusions for key assets considered as critical and sensitive”, and “strategies… to ensure the diversification of vendors”. Similarly, in February 2020, German ruling party’s members supported a position paper that called for limiting the participation of foreign vendors in 5G network rollout in a compromise as an anti-Chinese group among the Christian Democratic Union (CDU) have been piling up pressure on the Merkel administration for an outright ban of Huawei. Further, CDU’s coalition partner, Social Democratic Party, is asking for equipment suppliers’ political reliability vis-à-vis their home countries' governing system, which can dampen chances of companies like Huawei when the draft bill that asks for additional requirements from 5G network suppliers will face the parliamentary test. Handelsblatt has reported that Deutsch Telekom and Vodafone are already considering to remove Huawei equipment from the sensitive core of their networks considering domestic political preferences and rising business costs due to the US actions. While these suggestions do not call for an outright ban as the US would have liked, they nonetheless are in favour of more stringent regulatory regime against the foreign vendors like Huawei. Moreover, it should come as no surprise if local EU 5G players like Nokia and Ericsson are prioritised over the foreign ones by EU member states as the industrial strategy under the new French-German COVID-19 recovery plan suggests. The French-German deal calls for strengthening “screening towards non-EU investors in strategic sectors”, and “accelerating the adaptation of state aid and competition rules” in the European competition policy. Further, in sort of a policy priority, Josep Borrell Fontelles, High Representative of the EU for Foreign Affairs and Security Policy, recently in a column that was published in several media outlets suggested that the state-centric Chinese approach stands opposite to the “the EU’s multi-stakeholder approach based on respect for fundamental rights and freedoms” in the cyber domain; also, he called for avoiding dependence on China in strategic sectors. These developments suggest that Huawei’s access to most of the OECD market is likely to get restricted, which would limit China’s ambitions both politically and economically. ASEAN is one region where Huawei is likely to have better run among high-value markets, except in Vietnam. While Vietnam has not banned Huawei, it claims to have developed native 5G tech through Viettel, Vietnam’s largest telecommunications company operated by the country’s defence ministry, which experts suggest provides an incentive to bypass China’s Huawei. The company has suggested that it doesn’t have plans to work with Huawei for now. The situation isn’t likely to change much as China ramps up the aggression in the South China Sea. Also, other major emerging economies like Brazil and India are yet to take a call in this regard. India was one of the early countries to raise espionage-related concerns over Huawei almost a decade ago. While the government has allowed Huawei for trials, it is facing ambiguity over the issue as the country’s strategic community is seriously worried about national security issues. The situation is only likely to get tight due to ongoing border skirmishes at India-China border and also the Indian government’s plans to bring strong data protection law, which talks about localising data. Moreover, there have been a couple of interesting developments over Indian 5G in the recent past. First, Airtel, which have an advocate of Huawei, has inked a $1 billion deal with Nokia — as uncertainty over Huawei’s access prevails — to modernise and expand its 4G network, which will also be used for the future 5G purposes. Second, Reliance Jio, currently India’s largest telecommunications company, claimed to have developed own in-house 5G tech. Also, Jio has proudly claimed that it is the only company in the world that doesn’t use any Chinese equipment in its 4G and 5G networks and will maintain this going forward. All these events suggest the growing hardship for Chinese 5G plans across the world as it faces the campaign led by the US. As the geopolitics during the pandemic unravels, one should not expect the situation to get any better for Huawei; especially when China has ramped up the military aggression in the East China Sea, South China Sea, Taiwan Strait, Hong Kong and India-China border region. The international community — especially stakeholders at the receiving end of the Chinese aggression and the West that cares for international norms and human rights — is not likely to ease its stance anytime soon if the pandemic hostility prevails. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Coronavirus impact: Geopolitical developments deepen China’s global 5G woes

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US&nbsp;President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on&nbsp;Hong&nbsp;Kong&nbsp;after last year's often violent pro-democracy unrest. <a href="https://www.wionews.com/world/trump-says-us-will-react-strongly-if-china-imposes-new-hong-kong-security-law-300276">Read more</a>

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<img alt="Xi Jinping" data-entity-type="file" data-entity-uuid="f5e332ab-fbdc-49f1-b8c7-99bc4f2d48d1" src="//cdn.wionews.com/sites/default/files/inline-images/138728-xi-jinping.jpg" />

A proposal to enact the highly controversial&nbsp;Hong Kong security legislation was submitted to China's rubber-stamp on Friday, according to the state media. <a href="https://www.wionews.com/world/china-pushes-forward-controversial-security-law-in-hong-kong-after-unrest-300278">Read more</a>

<a href="https://www.wionews.com/world/forgive-those-who-killed-our-father-sons-of-killed-saudi-journalist-jamal-khashoggi-300279" hreflang="en">'Forgive those who killed our father': Sons of killed Saudi journalist Jamal Khashoggi</a>

<img alt="Jamal Khashoggi" data-entity-type="file" data-entity-uuid="4123fc48-5243-438d-bc82-6799aecc02f3" src="//cdn.wionews.com/sites/default/files/inline-images/72386-fp.jpg" />

The sons of murdered Saudi journalist Jamal Khashoggi said Friday that they "forgive" the killers of their father. <a href="https://www.wionews.com/world/forgive-those-who-killed-our-father-sons-of-killed-saudi-journalist-jamal-khashoggi-300279">Read more</a>

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Trump says US will 'react strongly' if China imposes new Hong Kong security law US President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on Hong Kong after last year's often violent pro-democracy unrest.

Trump says US will 'react strongly' if China imposes new Hong Kong security law US President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on Hong Kong after last year's often violent pro-democracy unrest. Read more China pushes forward controversial security law in Hong Kong after unrest A proposal to enact the highly controversial Hong Kong security legislation was submitted to China's rubber-stamp on Friday, according to the state media. Read more 'Forgive those who killed our father': Sons of killed Saudi journalist Jamal Khashoggi The sons of murdered Saudi journalist Jamal Khashoggi said Friday that they "forgive" the killers of their father. Read more

Morning news brief: Trump warns China, Hong Kong security law and more

US&nbsp;President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on&nbsp;Hong&nbsp;Kong&nbsp;after last year's often violent pro-democracy unrest.

The remarks, made by the President to reporters before leaving the White House, come hours after a Chinese official said the National People's Congress is exercising its "constitutional power” to set up a new legal framework and enforcement mechanism to ensure national security in&nbsp;Hong&nbsp;Kong.

Also read:&nbsp;<a href="https://www.wionews.com/world/mike-pompeo-warns-china-over-interference-with-american-journalists-in-hong-kong-threatens-hks-autonomy-status-299341">Mike Pompeo warns China over interference with American journalists in Hong Kong; threatens HK's autonomy status</a>

The move by China's rubber stamp parliament, the&nbsp;National People's Congress (NPC), which is meeting in Beijing this week, is sure to fuel further anger and protests in the city, which was rocked by over six months of increasingly violent anti-government unrest last year.

The law, which is expected to ban sedition, secession and subversion of the central government in Beijing, will be introduced through a rarely used constitutional method that could effectively bypass Hong Kong's legislature.

US had previously&nbsp;issued&nbsp;warning to Beijing as the law, which could enable crackdowns on anti-government protests, is blasted&nbsp;as the 'end' of Hong Kong as it&nbsp;could be the biggest blow to the city's autonomy and civil liberties since its handover to Chinese rule in 1997.

US President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on Hong Kong after last year's often violent pro-democracy unrest.

US President Donald Trump said on Thursday the United States would react strongly if China follows through on plans to impose new national security legislation on Hong Kong after last year's often violent pro-democracy unrest. The remarks, made by the President to reporters before leaving the White House, come hours after a Chinese official said the National People's Congress is exercising its "constitutional power” to set up a new legal framework and enforcement mechanism to ensure national security in Hong Kong. Also read: Mike Pompeo warns China over interference with American journalists in Hong Kong; threatens HK's autonomy status The move by China's rubber stamp parliament, the National People's Congress (NPC), which is meeting in Beijing this week, is sure to fuel further anger and protests in the city, which was rocked by over six months of increasingly violent anti-government unrest last year. The law, which is expected to ban sedition, secession and subversion of the central government in Beijing, will be introduced through a rarely used constitutional method that could effectively bypass Hong Kong's legislature. US had previously issued warning to Beijing as the law, which could enable crackdowns on anti-government protests, is blasted as the 'end' of Hong Kong as it could be the biggest blow to the city's autonomy and civil liberties since its handover to Chinese rule in 1997.

Trump says US will 'react strongly' if China imposes new Hong Kong security law

Taiwan has stayed firm in front of China by refusing to accept the "one country, two systems" model and it does not want to bow before Beijing's will.

<a href="https://www.wionews.com/world/in-inaugural-speech-after-re-election-taiwan-president-challenges-china-299994">Also Read:&nbsp;In inaugural speech after re-election, Taiwan President challenges China</a>

Taiwan still wants the observer status at the World Health Organisation(WHO) and has been pushing for it aggressively. It wanted to attend the World Health Assembly but, its campaign came to a grinding halt.

The World Health Assembly concluded on Tuesday. It went on for two days as leaders from around the world made speeches. There was even a resolution for a probe into the response.

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But Taiwan was kept out. In fact, the demand for an observer status to Taiwan was not even part of the agenda. Before the World Health Assembly, the world was singing Taiwan's praises. It's response to the coronavirus is among the world's best. The argument was that Taiwan's example could help the rest of the world.

However, the question is what derailed Taiwan's campaign? The United States was leading the effort trying to convince allies to support Taiwan.

After the failed bid, US secretary of state Mike Pompeo blamed it on politics. He issued a statement criticising the World Health Organisation. Pompeo blamed WHO director general Dr Tedros. In a statement, he said that Dr Tedros has the power, and the precedent to include Taiwan. Clearly, the support that Taiwan needed wasn't there.

The United States admitted it during the World Health Assembly. The statement was made by an American diplomat rebutting China. He was responding to the Chinese ambassador to the United Nations who had earlier objected to America's statement of support to Taiwan.

Both the United States and China were sparring on Taiwan till the end of the assembly. Taiwan's status disrupted the most important meeting on public health. The World Health Assembly did not have much to offer this time except for that one resolution demanding for a probe into the COVID-19 global response.&nbsp;

However, irrespective of the lack of diplomatic support, Taiwan will emerged stronger out of the pandemic. China may have managed to ward off the Taiwan threat for now but, Taiwan is not out of the picture, just yet.

Taiwan has stayed firm in front of China by refusing to accept the "one country, two systems" model and it does not want to bow before Beijing's will. Also Read: In inaugural speech after re-election, Taiwan President challenges China Taiwan still wants the observer status at the World Health Organisation(WHO) and has been pushing for it aggressively.

Taiwan has stayed firm in front of China by refusing to accept the "one country, two systems" model and it does not want to bow before Beijing's will. Also Read: In inaugural speech after re-election, Taiwan President challenges China Taiwan still wants the observer status at the World Health Organisation(WHO) and has been pushing for it aggressively. It wanted to attend the World Health Assembly but, its campaign came to a grinding halt. The World Health Assembly concluded on Tuesday. It went on for two days as leaders from around the world made speeches. There was even a resolution for a probe into the response. But Taiwan was kept out. In fact, the demand for an observer status to Taiwan was not even part of the agenda. Before the World Health Assembly, the world was singing Taiwan's praises. It's response to the coronavirus is among the world's best. The argument was that Taiwan's example could help the rest of the world. However, the question is what derailed Taiwan's campaign? The United States was leading the effort trying to convince allies to support Taiwan. After the failed bid, US secretary of state Mike Pompeo blamed it on politics. He issued a statement criticising the World Health Organisation. Pompeo blamed WHO director general Dr Tedros. In a statement, he said that Dr Tedros has the power, and the precedent to include Taiwan. Clearly, the support that Taiwan needed wasn't there. The United States admitted it during the World Health Assembly. The statement was made by an American diplomat rebutting China. He was responding to the Chinese ambassador to the United Nations who had earlier objected to America's statement of support to Taiwan. Both the United States and China were sparring on Taiwan till the end of the assembly. Taiwan's status disrupted the most important meeting on public health. The World Health Assembly did not have much to offer this time except for that one resolution demanding for a probe into the COVID-19 global response. However, irrespective of the lack of diplomatic support, Taiwan will emerged stronger out of the pandemic. China may have managed to ward off the Taiwan threat for now but, Taiwan is not out of the picture, just yet.

US, China spar over Taiwan at World Health Assembly

The United States is developing&nbsp;a ''super duper missile''&nbsp;to outpace military rivals including China and Russia, according to US President Donald Trump.

Unveiling the flag for&nbsp;his new&nbsp;space&nbsp;force&nbsp;in the Oval Office&nbsp;on Friday, Trump touted that the US&nbsp;is ''right now building incredible military equipment,''&nbsp;including a missile that&nbsp;is ''17 times faster'' than his adversaries.

Russian President Vladimir Putin has claimed his country has already developed and fielded a hypersonic nuclear missile ahead of the US&nbsp;The Pentagon has been working on the technology.

According to Russian state media, Putin has said his Avangard missiles can ''travel at up to 20 times the speed of sound, like a 'meteorite'&nbsp;or a 'fireball'.''

Later Friday, Jonathan Rath Hoffman, a Pentagon spokesman, tweeted that “the Department of Defense is working on developing a range of hypersonic missiles to counter our adversaries.”

''Not a single country possesses hypersonic weapons, let alone continental-range hypersonic weapons,''&nbsp;Putin told military chiefs in December.

Last December, Trump signed into law a measure to create the Space Force, saying the US&nbsp;needed to expand its military presence in space. The Air Force previously oversaw offensive and defensive operations in space.

The United States is developing a ''super duper missile'' to outpace military rivals including China and Russia, according to US President Donald Trump. Unveiling the flag for his new space force in the Oval Office on Friday, Trump touted that the US is ''right now building incredible military equipment,'' including a missile that is ''17 times faster'' than his adversaries.

The United States is developing a ''super duper missile'' to outpace military rivals including China and Russia, according to US President Donald Trump. Unveiling the flag for his new space force in the Oval Office on Friday, Trump touted that the US is ''right now building incredible military equipment,'' including a missile that is ''17 times faster'' than his adversaries. Russian President Vladimir Putin has claimed his country has already developed and fielded a hypersonic nuclear missile ahead of the US The Pentagon has been working on the technology. According to Russian state media, Putin has said his Avangard missiles can ''travel at up to 20 times the speed of sound, like a 'meteorite' or a 'fireball'.'' Later Friday, Jonathan Rath Hoffman, a Pentagon spokesman, tweeted that “the Department of Defense is working on developing a range of hypersonic missiles to counter our adversaries.” ''Not a single country possesses hypersonic weapons, let alone continental-range hypersonic weapons,'' Putin told military chiefs in December. Last December, Trump signed into law a measure to create the Space Force, saying the US needed to expand its military presence in space. The Air Force previously oversaw offensive and defensive operations in space.

US to defeat China and Russia with 'super duper missile'

It is the advent of Cold War 2.0 with America and its allies on one side and on the other&nbsp;China and Russia involving suspicion, hostility, and aggression including&nbsp;military muscle-flexing without exchanging fire.

It is has been happening as standard characteristics of the Cold War which played out from 1945 to the end of the 1980s.

Now, America is taking on China&nbsp;and recruiting allies. US ally Australia is effectively edging towards a break-up with China with trade ties being disrupted even though China is Australia's biggest export market.

China makes up 30 per cent of Australia's exports which is close to 7 per cent of its GDP. Chinese students and tourists bring big money to Australia. China has been leveraging everything. It has now blocked beef and barley imports from Australia after PM Scott Morrison demanded an investigation into the coronavirus outbreak.&nbsp;

However, Australia remains firm&nbsp;and hasn't backed down. Then there is Japan upping the ante. Japan's chief cabinet secretary has spoken about the Uighurs in China.

Yoshi-hide Suga while addressing the press was asked a question about the Uighurs, the Japanese leader said Tokyo is watching China closely. Japan is also working overtime to pull its businesses out of China.

President Trump may be famous for his U-turns but for days now&nbsp;he's been taking on China openly. On Thursday, during an interview&nbsp;the US president threatened to kill America's diplomatic relationship with China. Trump blamed the Chinese government for spreading the virus and said he doesn't want to speak to President Xi Jinping.

China foreign ministry spokesman Zhao Lijian gave a measured response but he seemed to lose his cool when Taiwan was mentioned with hostility evident.

Recently, US secretary Mike Pompeo held a video conference with foreign ministers of seven countries. The idea was to get them on board against China. India's external minister S Jaishankar was part of the digitial meeting. Israel and South Korea were among the other participants.

Reports say the conversation lasted 75 minutes with the US focus on making China pay by restructuring supply chains and dent China's domination over world trade. The confrontation could escalate on Monday when WHO members meet for the world health assembly, not in person, but on video conference, thanks to the Wuhan virus.

It is the advent of Cold War 2.0 with America and its allies on one side and on the other China and Russia involving suspicion, hostility, and aggression including military muscle-flexing without exchanging fire.

It is the advent of Cold War 2.0 with America and its allies on one side and on the other China and Russia involving suspicion, hostility, and aggression including military muscle-flexing without exchanging fire. It is has been happening as standard characteristics of the Cold War which played out from 1945 to the end of the 1980s. Now, America is taking on China and recruiting allies. US ally Australia is effectively edging towards a break-up with China with trade ties being disrupted even though China is Australia's biggest export market. China makes up 30 per cent of Australia's exports which is close to 7 per cent of its GDP. Chinese students and tourists bring big money to Australia. China has been leveraging everything. It has now blocked beef and barley imports from Australia after PM Scott Morrison demanded an investigation into the coronavirus outbreak. However, Australia remains firm and hasn't backed down. Then there is Japan upping the ante. Japan's chief cabinet secretary has spoken about the Uighurs in China. Yoshi-hide Suga while addressing the press was asked a question about the Uighurs, the Japanese leader said Tokyo is watching China closely. Japan is also working overtime to pull its businesses out of China. President Trump may be famous for his U-turns but for days now he's been taking on China openly. On Thursday, during an interview the US president threatened to kill America's diplomatic relationship with China. Trump blamed the Chinese government for spreading the virus and said he doesn't want to speak to President Xi Jinping. China foreign ministry spokesman Zhao Lijian gave a measured response but he seemed to lose his cool when Taiwan was mentioned with hostility evident. Recently, US secretary Mike Pompeo held a video conference with foreign ministers of seven countries. The idea was to get them on board against China. India's external minister S Jaishankar was part of the digitial meeting. Israel and South Korea were among the other participants. Reports say the conversation lasted 75 minutes with the US focus on making China pay by restructuring supply chains and dent China's domination over world trade. The confrontation could escalate on Monday when WHO members meet for the world health assembly, not in person, but on video conference, thanks to the Wuhan virus.

Cold War 2.0: US and its allies tussle against China, Russia

The United States is pressuring its allies and trying to coerce other countries to help it plant accusations against China on issues concerning COVID-19 responsibility, said a spokeswoman for China's Ministry of Foreign Affairs on Wednesday.

Hua Chunying said that some US&nbsp;media reported the United States is pressuring its European allies to stand with it on pandemic responsibility and also&nbsp;to&nbsp;plant accusations against China.

Also read:&nbsp;<a href="https://www.wionews.com/world/coronavirus-worse-than-pearl-harbor-911-for-us-says-trump-297102" hreflang="en">Coronavirus 'worse' than Pearl Harbor, 9/11 for US, says Trump</a>

Earlier, renewing&nbsp;his criticism of China on Wednesday over the global coronavirus pandemic, US President Donald Trump said it was the "worst attack" ever on his country.

Trump lashed out at China, continuing a war of words over the origins of the deadly virus that emerged in Wuhan last year.&nbsp;

Beijing says the US wants to distract from its own handling of the pandemic.

Also read:&nbsp;<a href="https://www.wionews.com/world/nearly-one-out-of-five-children-in-us-left-hungry-since-virus-crisis-study-297103" hreflang="en">Nearly one out of five children in US left hungry since virus crisis: study</a>

China hit back Wednesday at US Secretary of State Mike Pompeo over his claims the virus originated in a Wuhan laboratory, saying he has no evidence.

"This matter should be handed to scientists and medical professionals, and not politicians who lie for their own domestic political ends," China's foreign ministry spokeswoman said.

''Some US&nbsp;politicians repeatedly blame China for domestic politics regardless of the facts. On this issue, countries in Europe and other areas in the world do have a choice to make, not between China and the United States, but between lies and facts, unilateral bullying and multilateral cooperation, and this is a choice that every country faces," said Hua.

She stated that China is on the side of strengthening international ties and has participated in supporting and cooperating with other nations to help stop the spread of the pandemic.

"The answer is obvious, and in fact many countries are already responding with actions. Many European leaders have made clear their support for the World Health Organization (WHO) to continue to play an important role in responding to COVID-19 and strengthening the global public health system.''

The European Union held an international pledging conference on May 4.

''China has&nbsp;actively participated in it and made its own contribution. On the issue of strengthening international solidarity and cooperation in the fight against the pandemic, China has always stood firmly with the United Nations, the WHO and almost all countries in the world, and made every possible contribution. I hope the United States can see its isolation at this time," said Hua.

The deadly virus has claimed&nbsp;263,831 lives worldwide while infecting&nbsp;3,755,341 people.

The United States is pressuring its allies and trying to coerce other countries to help it plant accusations against China on issues concerning COVID-19 responsibility, said a spokeswoman for China's Ministry of Foreign Affairs on Wednesday.

The United States is pressuring its allies and trying to coerce other countries to help it plant accusations against China on issues concerning COVID-19 responsibility, said a spokeswoman for China's Ministry of Foreign Affairs on Wednesday. Hua Chunying said that some US media reported the United States is pressuring its European allies to stand with it on pandemic responsibility and also to plant accusations against China. Also read: Coronavirus 'worse' than Pearl Harbor, 9/11 for US, says Trump Earlier, renewing his criticism of China on Wednesday over the global coronavirus pandemic, US President Donald Trump said it was the "worst attack" ever on his country. Trump lashed out at China, continuing a war of words over the origins of the deadly virus that emerged in Wuhan last year. Beijing says the US wants to distract from its own handling of the pandemic. Also read: Nearly one out of five children in US left hungry since virus crisis: study China hit back Wednesday at US Secretary of State Mike Pompeo over his claims the virus originated in a Wuhan laboratory, saying he has no evidence. "This matter should be handed to scientists and medical professionals, and not politicians who lie for their own domestic political ends," China's foreign ministry spokeswoman said. ''Some US politicians repeatedly blame China for domestic politics regardless of the facts. On this issue, countries in Europe and other areas in the world do have a choice to make, not between China and the United States, but between lies and facts, unilateral bullying and multilateral cooperation, and this is a choice that every country faces," said Hua. She stated that China is on the side of strengthening international ties and has participated in supporting and cooperating with other nations to help stop the spread of the pandemic. "The answer is obvious, and in fact many countries are already responding with actions. Many European leaders have made clear their support for the World Health Organization (WHO) to continue to play an important role in responding to COVID-19 and strengthening the global public health system.'' The European Union held an international pledging conference on May 4. ''China has actively participated in it and made its own contribution. On the issue of strengthening international solidarity and cooperation in the fight against the pandemic, China has always stood firmly with the United Nations, the WHO and almost all countries in the world, and made every possible contribution. I hope the United States can see its isolation at this time," said Hua. The deadly virus has claimed 263,831 lives worldwide while infecting 3,755,341 people.

China lambasts US for coercing countries to plant COVID-19 accusations against it

Chinese agents stoked panic in US in&nbsp;the early days of COVID-19 outbreak by spreading fake warnings, according to a report published in the&nbsp;New York Times.

The report was based on interviews with&nbsp;six American officials who denied to reveal their identity.

Also read:&nbsp;<a href="https://www.wionews.com/world/us-coronavirus-timeline-shifts-three-weeks-earlier-in-wake-of-new-disclosure-294142" hreflang="en">US coronavirus timeline shifts three weeks earlier in wake of new disclosure</a>

The study&nbsp;states that&nbsp;operatives helped spread messages claiming Trump administration would deploy national guard to enforce nationwide quarantine.

Also read:&nbsp;<a href="https://www.wionews.com/world/chinas-asymptomatic-cases-increase-to-over-980-294139" hreflang="en">China's asymptomatic cases increase to over 980</a>

According to the US Department of Homeland Security, a common&nbsp;message&nbsp;circulated&nbsp;in the early phase&nbsp;of the pandemic was: ''they will announce this as soon as they have troops in place to help prevent looters and rioters. He said he got the call last night and was told to pack and be prepared for the call today with his dispatch orders.''

<img alt="US Department of Homeland Security" data-entity-type="file" data-entity-uuid="471214f7-76c2-4b00-8110-4278594fcfed" src="//cdn.wionews.com/sites/default/files/inline-images/NPEK45S6VZAENIYE5JMK5LSPSQ_0.jpg" /> 
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Since the disinformation appeared as text messages on the mobile phones of several Americans, the Department&nbsp;issued an announcement on&nbsp;Twitter declaring that they were all&nbsp;''fake''.

However, China has denied broader claims that it is involved in misinformation campaigns.

The tactic was especially alarming to intelligence officials because&nbsp;several of them said they had not seen before.

The findings appear to represent an escalation by foreign powers like Russia and China in trying to capitalise on the panic surrounding the pandemic to sow confusion in the US, and intelligence agencies are taking a new look at how operatives may have exploited the situation.

Chinese agents stoked panic in US in the early days of COVID-19 outbreak by spreading fake warnings, according to a report published in the New York Times. The report was based on interviews with six American officials who denied to reveal their identity.

Chinese agents stoked panic in US in the early days of COVID-19 outbreak by spreading fake warnings, according to a report published in the New York Times. The report was based on interviews with six American officials who denied to reveal their identity. Also read: US coronavirus timeline shifts three weeks earlier in wake of new disclosure The study states that operatives helped spread messages claiming Trump administration would deploy national guard to enforce nationwide quarantine. Also read: China's asymptomatic cases increase to over 980 According to the US Department of Homeland Security, a common message circulated in the early phase of the pandemic was: ''they will announce this as soon as they have troops in place to help prevent looters and rioters. He said he got the call last night and was told to pack and be prepared for the call today with his dispatch orders.'' Also read: Two pet cats in US test positive for COVID-19 Since the disinformation appeared as text messages on the mobile phones of several Americans, the Department issued an announcement on Twitter declaring that they were all ''fake''. However, China has denied broader claims that it is involved in misinformation campaigns. The tactic was especially alarming to intelligence officials because several of them said they had not seen before. The findings appear to represent an escalation by foreign powers like Russia and China in trying to capitalise on the panic surrounding the pandemic to sow confusion in the US, and intelligence agencies are taking a new look at how operatives may have exploited the situation.

Chinese agents fuelled panic in US by spreading fake warnings, says report

Amid the tense row with the US, China on Thursday offered to share information on coronavirus with the world. &nbsp;

Will share scientific and medical achievements China made in containing coronavirus or COVID-19, country's Vice Minister of Science and Technology, Xu Nanping said.

Also read: <a href="https://www.wionews.com/world/more-than-250000-confirmed-coronavirus-cases-in-europe-288694">More than 250,000 confirmed coronavirus cases in Europe</a>

"These achievements are out of the hard work of Chinese scientists, but they are also the crystallization of the exploration of mankind to the knowledge of infectious diseases in the long history," Nanping said in a press briefing.

"Now we are facing a common challenge so these achievements should be shared with other countries without reservation and used to save people's lives," he added.

Also read:<a href="https://www.wionews.com/photos/how-countries-are-using-robots-to-fight-coronavirus-pandemic-288627">&nbsp;How countries are using robots to fight coronavirus pandemic?</a>

Earlier this week, US State Secretary Mike Pompeo sharpened his criticism of China's handling of the coronavirus outbreak, saying its ruling Communist Party was still denying the world information it needs to prevent further cases.

In an interview with the Washington Watch radio program, Pompeo repeated previous charges that Beijing's delay in sharing information about the virus had created risks to people worldwide and said this had "truly put thousands of lives at risk."

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Referring to the Pompeo's comments, Vice Minister of Foreign Affairs, Luo Zhaohui, who was also present at the briefing said, "Some American politicians and senior officials made inappropriate remarks of stigmatization and this has indeed damaged the cooperation of China and the US in fighting the epidemic."

"It has also damaged the atmosphere of the relations between China and the US This is not something we are willing to see," Zhaohui added.

"China and the US are leading the world in the research of the epidemic and the development of medicine. Cooperation between us will not only benefit both sides but also benefit mankind," the Chinese leader also said.

Pompeo, a sharp critic of Beijing who has gone on the offensive over what he calls the "Wuhan virus," since the cases started rising in the United States.

On Wednesday, Pompeo said that he shared a common view with the top diplomats of the other G7 countries -- Britain, Canada, France, Germany, Italy and Japan.

"Every one of the nations that were at that meeting this morning was deeply aware of the disinformation campaign that the Chinese Communist Party is engaged in to try and deflect from what has really taken place," Pompeo told reporters.

Pompeo said that China "has been and continues to be engaged in" a social media campaign that has included conspiracy theories of US involvement.

Meanwhile, the virus has killed more than 21,000 people globally, but Beijing has appeared to bring it under control and has sent aid overseas, including 40 tons of medical supplies to US ally Italy, which has the world's highest death toll.

(With inputs froma gencies)

Amid the tense row with the US, China on Thursday offered to share information on coronavirus with the world. Will share scientific and medical achievements China made in containing coronavirus or COVID-19, country's Vice Minister of Science and Technology, Xu Nanping said.

Amid the tense row with the US, China on Thursday offered to share information on coronavirus with the world. Will share scientific and medical achievements China made in containing coronavirus or COVID-19, country's Vice Minister of Science and Technology, Xu Nanping said. Also read: More than 250,000 confirmed coronavirus cases in Europe "These achievements are out of the hard work of Chinese scientists, but they are also the crystallization of the exploration of mankind to the knowledge of infectious diseases in the long history," Nanping said in a press briefing. "Now we are facing a common challenge so these achievements should be shared with other countries without reservation and used to save people's lives," he added. Also read: How countries are using robots to fight coronavirus pandemic? Earlier this week, US State Secretary Mike Pompeo sharpened his criticism of China's handling of the coronavirus outbreak, saying its ruling Communist Party was still denying the world information it needs to prevent further cases. In an interview with the Washington Watch radio program, Pompeo repeated previous charges that Beijing's delay in sharing information about the virus had created risks to people worldwide and said this had "truly put thousands of lives at risk." Also read: Saudi to chair G20 crisis talks as coronavirus threatens global recession Referring to the Pompeo's comments, Vice Minister of Foreign Affairs, Luo Zhaohui, who was also present at the briefing said, "Some American politicians and senior officials made inappropriate remarks of stigmatization and this has indeed damaged the cooperation of China and the US in fighting the epidemic." "It has also damaged the atmosphere of the relations between China and the US This is not something we are willing to see," Zhaohui added. "China and the US are leading the world in the research of the epidemic and the development of medicine. Cooperation between us will not only benefit both sides but also benefit mankind," the Chinese leader also said. Pompeo, a sharp critic of Beijing who has gone on the offensive over what he calls the "Wuhan virus," since the cases started rising in the United States. On Wednesday, Pompeo said that he shared a common view with the top diplomats of the other G7 countries -- Britain, Canada, France, Germany, Italy and Japan. "Every one of the nations that were at that meeting this morning was deeply aware of the disinformation campaign that the Chinese Communist Party is engaged in to try and deflect from what has really taken place," Pompeo told reporters. Pompeo said that China "has been and continues to be engaged in" a social media campaign that has included conspiracy theories of US involvement. Meanwhile, the virus has killed more than 21,000 people globally, but Beijing has appeared to bring it under control and has sent aid overseas, including 40 tons of medical supplies to US ally Italy, which has the world's highest death toll. (With inputs froma gencies)

Amid tense row with US, China offers to share information on COVID-19

Publishers of three US&nbsp;newspapers urged China on Tuesday to reverse a decision to force out about a dozen of their American journalists, saying in an open letter that the expulsions come at a time of "shared crisis" for the world.

China announced on March 18 it was revoking the press accreditations of all American journalists in the China bureaus of the three newspapers that were due to expire at the end of 2020, effectively expelling them.

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"We strongly urge the Chinese government to reverse its decision to force the Americans working for our news organizations to leave," the publishers of News Corp's Wall Street Journal, the Washington Post and the New York Times said.

The decision "uniquely damaging and reckless" as the world is fighting a global coronavirus pandemic, they said.

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"Perhaps more than any major news event in modern history, this moment underscores the urgent importance of both probing, accurate, on-the-ground reporting from the centers of the pandemic and of sharing the information."

The expulsions were the latest escalation in a dispute with the United States over media freedom and access, which last month saw the United States require that Chinese state media register as foreign embassies.

China then expelled three Wall Street Journal reporters - two Americans and an Australian - after the paper published an opinion column calling China the "real sick man of Asia".

The United States then cut the number of journalists allowed to work at four major Chinese state media outlets there from 160 to 100, citing a "deepening crackdown" on independent reporting in China.

China's Foreign Ministry has said its measures are "necessary" and "reciprocal" against "escalating discrimination and oppression against Chinese media" by the United States.

Publishers of three US newspapers urged China on Tuesday to reverse a decision to force out about a dozen of their American journalists, saying in an open letter that the expulsions come at a time of "shared crisis" for the world.

Publishers of three US newspapers urged China on Tuesday to reverse a decision to force out about a dozen of their American journalists, saying in an open letter that the expulsions come at a time of "shared crisis" for the world. China announced on March 18 it was revoking the press accreditations of all American journalists in the China bureaus of the three newspapers that were due to expire at the end of 2020, effectively expelling them. Also read: China to expel US journalists, escalates bitter row with Washington "We strongly urge the Chinese government to reverse its decision to force the Americans working for our news organizations to leave," the publishers of News Corp's Wall Street Journal, the Washington Post and the New York Times said. The decision "uniquely damaging and reckless" as the world is fighting a global coronavirus pandemic, they said. Also read: China's imported virus cases spike as fears grow of second wave "Perhaps more than any major news event in modern history, this moment underscores the urgent importance of both probing, accurate, on-the-ground reporting from the centers of the pandemic and of sharing the information." The expulsions were the latest escalation in a dispute with the United States over media freedom and access, which last month saw the United States require that Chinese state media register as foreign embassies. China then expelled three Wall Street Journal reporters - two Americans and an Australian - after the paper published an opinion column calling China the "real sick man of Asia". The United States then cut the number of journalists allowed to work at four major Chinese state media outlets there from 160 to 100, citing a "deepening crackdown" on independent reporting in China. China's Foreign Ministry has said its measures are "necessary" and "reciprocal" against "escalating discrimination and oppression against Chinese media" by the United States.

US newspapers call on China to reverse expulsion of journalists

China has announced that it will expel American journalists from three major US newspapers, in one of the communist government's biggest crackdowns on the foreign press and escalating a bitter row with Washington.

The decision, effective immediately, will require US nationals working for the New York Times, the Washington Post and the Wall Street Journal to return their press accreditation within 10 days, if their credentials expire before the end of 2020.

The move came as the superpowers also feuded over the coronavirus pandemic, with US President Donald Trump provocatively branding it the "Chinese virus".

Also read:&nbsp;<a href="https://www.wionews.com/world/mind-your-own-business-china-to-trump-after-he-calls-covid-19-chinese-virus-287042">Mind your own business: China to Trump after he calls COVID-19 'Chinese virus'</a>

China said the expulsions were in retaliation for Washington's decision to cut the number of Chinese nationals allowed to work for its state-run media on American soil.

"In recent years, the US government has placed unwarranted restrictions on Chinese media agencies and personnel in the US, purposely made things difficult for their normal reporting assignments, and subjected them to growing discrimination and politically-motivated oppression," China's Ministry of Foreign Affairs said.

The expulsions "are legitimate and justified self-defence in every sense,'' it added.

Also read:&nbsp;<a href="https://www.wionews.com/world/chinese-authorities-using-visas-as-weapons-against-foreign-press-report-283792">Chinese authorities using visas as weapons against foreign press: Report</a>

It said the journalists at the three newspapers must hand back their credentials within 10 days, and highlighted they would also not be able to work in the semi-autonomous cities of Hong Kong and Macau.

Beijing also ordered the papers, as well as Voice of America and Time magazine, to declare in writing their staff, finances, operations and real estate in China rules similar to those recently imposed on Chinese state media by Washington.

The foreign ministry said the measures "are entirely necessary and reciprocal" moves that China "is compelled to take in response to the unreasonable oppression the Chinese media organizations experience in the US".

Watch: China revokes 3 American Journalists of Wall Street Journal

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/china-revokes-3-american-journalists-of-wall-street-journal-281718/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The row was ignited last month when the US reclassified Chinese state-run media operating in the United States as foreign missions.

China then expelled three other Wall Street Journal reporters, two Americans and one Australian, over what it deemed a racist headline by the US newspaper.

Those were the first outright expulsions by China of a foreign journalist since 1998, according to the Foreign Correspondents' Club of China.

US Secretary of State Mike Pompeo said following the latest move against the three newspapers that China was wrong to equate state-run media, which answer to Beijing, and independent US news outlets that can freely report and ask critical questions.

"I regret China's decision today to further foreclose the world's ability to conduct the free press operations that, frankly, would be really good for the Chinese people in these incredibly challenging global times, where more information, more transparency are what will save lives," Pompeo said in a statment on Wednesday.

China has announced that it will expel American journalists from three major US newspapers, in one of the communist government's biggest crackdowns on the foreign press and escalating a bitter row with Washington.

China has announced that it will expel American journalists from three major US newspapers, in one of the communist government's biggest crackdowns on the foreign press and escalating a bitter row with Washington. The decision, effective immediately, will require US nationals working for the New York Times, the Washington Post and the Wall Street Journal to return their press accreditation within 10 days, if their credentials expire before the end of 2020. The move came as the superpowers also feuded over the coronavirus pandemic, with US President Donald Trump provocatively branding it the "Chinese virus". Also read: Mind your own business: China to Trump after he calls COVID-19 'Chinese virus' China said the expulsions were in retaliation for Washington's decision to cut the number of Chinese nationals allowed to work for its state-run media on American soil. "In recent years, the US government has placed unwarranted restrictions on Chinese media agencies and personnel in the US, purposely made things difficult for their normal reporting assignments, and subjected them to growing discrimination and politically-motivated oppression," China's Ministry of Foreign Affairs said. The expulsions "are legitimate and justified self-defence in every sense,'' it added. Also read: Chinese authorities using visas as weapons against foreign press: Report It said the journalists at the three newspapers must hand back their credentials within 10 days, and highlighted they would also not be able to work in the semi-autonomous cities of Hong Kong and Macau. Beijing also ordered the papers, as well as Voice of America and Time magazine, to declare in writing their staff, finances, operations and real estate in China rules similar to those recently imposed on Chinese state media by Washington. The foreign ministry said the measures "are entirely necessary and reciprocal" moves that China "is compelled to take in response to the unreasonable oppression the Chinese media organizations experience in the US". Watch: China revokes 3 American Journalists of Wall Street Journal The row was ignited last month when the US reclassified Chinese state-run media operating in the United States as foreign missions. China then expelled three other Wall Street Journal reporters, two Americans and one Australian, over what it deemed a racist headline by the US newspaper. Those were the first outright expulsions by China of a foreign journalist since 1998, according to the Foreign Correspondents' Club of China. US Secretary of State Mike Pompeo said following the latest move against the three newspapers that China was wrong to equate state-run media, which answer to Beijing, and independent US news outlets that can freely report and ask critical questions. "I regret China's decision today to further foreclose the world's ability to conduct the free press operations that, frankly, would be really good for the Chinese people in these incredibly challenging global times, where more information, more transparency are what will save lives," Pompeo said in a statment on Wednesday.

China to expel US journalists, escalates bitter row with Washington

The Trump administration on Monday slashed by nearly half the number of Chinese nationals who can work for state-run media in the United States.

<a href="https://www.wionews.com/world/chinese-authorities-using-visas-as-weapons-against-foreign-press-report-283792">Also Read:&nbsp;Chinese authorities using visas as weapons against foreign press, says Report</a>

"Today, we announced a personnel cap on Chinese government-controlled media organizations in the United States", secretary of state Mike Pompeo said in a statement.

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Today, we announced a personnel cap on Chinese government-controlled media organizations in the United States. We urge Beijing to respect freedom of expression and will continue to seek reciprocity across the bilateral relationship.
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"We urge Beijing to respect freedom of expression and will continue to seek reciprocity across the bilateral relationship," Pompeo added.

The Foreign Correspondents' Club of China (FCCC) in a report had said earlier that Chinese authorities were using visas as weapons against the foreign press like never before.

<a href="https://www.wionews.com/world/after-expelling-journalists-china-demands-apology-from-the-wall-street-journal-282443">Also Read:&nbsp;After expelling journalists, China demands apology from The Wall Street Journal</a>

"Since 2013, when Xi Jinping's ascension to power was completed, China has forced out nine foreign journalists, either through outright expulsion or by non-renewal of visas, the FCC said.

Earlier, China had expelled three The Wall Street Journal reporters over what it called a racist headline titled "China is the Real Sick Man of Asia".

However, China's foreign ministry said: "What happened to the Wall Street Journal journalists was just an independent case."

"There are over 600 foreign journalists stationed in China and they don't need to worry about their reporting in China as long as they observe Chinese laws and regulations," China's foreign ministry spokesman said.

The Trump administration on Monday slashed by nearly half the number of Chinese nationals who can work for state-run media in the United States. Also Read: Chinese authorities using visas as weapons against foreign press, says Report "Today, we announced a personnel cap on Chinese government-controlled media organizations in the United States", secretary of state Mike Pompeo said in a statement.

The Trump administration on Monday slashed by nearly half the number of Chinese nationals who can work for state-run media in the United States. Also Read: Chinese authorities using visas as weapons against foreign press, says Report "Today, we announced a personnel cap on Chinese government-controlled media organizations in the United States", secretary of state Mike Pompeo said in a statement. Today, we announced a personnel cap on Chinese government-controlled media organizations in the United States. We urge Beijing to respect freedom of expression and will continue to seek reciprocity across the bilateral relationship. — Secretary Pompeo (@SecPompeo) March 2, 2020 × "We urge Beijing to respect freedom of expression and will continue to seek reciprocity across the bilateral relationship," Pompeo added. The Foreign Correspondents' Club of China (FCCC) in a report had said earlier that Chinese authorities were using visas as weapons against the foreign press like never before. Also Read: After expelling journalists, China demands apology from The Wall Street Journal "Since 2013, when Xi Jinping's ascension to power was completed, China has forced out nine foreign journalists, either through outright expulsion or by non-renewal of visas, the FCC said. Earlier, China had expelled three The Wall Street Journal reporters over what it called a racist headline titled "China is the Real Sick Man of Asia". However, China's foreign ministry said: "What happened to the Wall Street Journal journalists was just an independent case." "There are over 600 foreign journalists stationed in China and they don't need to worry about their reporting in China as long as they observe Chinese laws and regulations," China's foreign ministry spokesman said.

Trump administration announces caps on Chinese staff working in state media in US

The United States has designated five <a href="https://www.wionews.com/opinions-blogs/us-china-trade-deal-what-were-the-key-issues-and-are-they-resolved-275073">Chinese</a> media outlets as foreign missions. It means that the Trump administration has designated Chinese media houses as not practitioners of journalism but as operatives of the Chinese state.

The list includes - Xinhua news agency, China global television network, China radio international, <a href="https://www.wionews.com/world/we-are-righting-the-wrongs-of-the-past-trump-on-phase-1-trade-deal-with-china-274503">China </a>daily distribution corporation and the People’s Daily.

The US State Department has said these media houses are propagating state-sponsored propaganda and are just mere agents of the Communist Party of China.&nbsp;

Officials said that the decision comes after repeated examples of how much of a function of the state the companies have become and that the freedom of the press in China is under siege.

US secretary of state Mike Pompeo added in a statement that the action is "long overdue".&nbsp;

Pompeo said for years the so-called media outlets have been mouthpieces of the Chinese Communist Party and the Chinese outlets are becoming more aggressive.

The move by the US government means all Chinese outlets will have to notify the office of foreign missions about the names, personal details and turnover of staff living in the US.&nbsp;

The entities designated as "foreign missions" will also have to clearly announce the current property holdings on US soil. The rules also apply to foreign embassies and consulates in the United States.&nbsp;

The US decision on the Chinese media outlets comes a month after President Trump signed a temporary truce in the trade war with China.

Critics suggest that this decision could lead to a retaliation against American journalists who work in china, especially those affiliated with the United States government.

The United States has designated five Chinese media outlets as foreign missions. It means that the Trump administration has designated Chinese media houses as not practitioners of journalism but as operatives of the Chinese state.

The United States has designated five Chinese media outlets as foreign missions. It means that the Trump administration has designated Chinese media houses as not practitioners of journalism but as operatives of the Chinese state. The list includes - Xinhua news agency, China global television network, China radio international, China daily distribution corporation and the People’s Daily. The US State Department has said these media houses are propagating state-sponsored propaganda and are just mere agents of the Communist Party of China. Officials said that the decision comes after repeated examples of how much of a function of the state the companies have become and that the freedom of the press in China is under siege. US secretary of state Mike Pompeo added in a statement that the action is "long overdue". Pompeo said for years the so-called media outlets have been mouthpieces of the Chinese Communist Party and the Chinese outlets are becoming more aggressive. The move by the US government means all Chinese outlets will have to notify the office of foreign missions about the names, personal details and turnover of staff living in the US. The entities designated as "foreign missions" will also have to clearly announce the current property holdings on US soil. The rules also apply to foreign embassies and consulates in the United States. The US decision on the Chinese media outlets comes a month after President Trump signed a temporary truce in the trade war with China. Critics suggest that this decision could lead to a retaliation against American journalists who work in china, especially those affiliated with the United States government.

US designates Chinese media outlets as 'foreign missions'

China’s ambassador to Australia, Cheng Jingye, let the cat out of the bag this week when he lambasted Canberra over its decision to exclude Huawei from the build-out of Australia’s 5G network.

In uncharacteristically sharp diplomatic language, Cheng described Australia’s campaign against Huawei as “politically motivated” and “discriminatory”.

This is not the first time Chinese officials have voiced their country’s displeasure with the Australian government’s campaign against Huawei. But Cheng’s public intervention represents the most direct criticism of Australia in what is shaping as a defining issue in relations between China and the West.

A burgeoning technology war with China

It is now clear America and its allies are engaged in what has the makings of a full-blown technology war. The ultimate destination of this conflict is unclear, but its ramifications will scar international relationships for decades to come.

The rawness of this issue is likely to become more pronounced as China spreads its superfast 5G technology across the globe in competition with the more expensive Nokia and Ericsson systems. Huawei technology accounts for about 30% of the world’s mobile technology market, double the reach of its nearest rivals.

America and its allies fear Huawei’s penetration – indeed dominance – of the market for 5G will give the Chinese company, and China itself, a “backdoor” into communications systems globally.

The battle over Huawei is merely the most visible manifestation of the conflict between the US, the longtime leader in technology, and China, the emerging technology superpower. China’s advances in areas like artificial intelligence are already turning assumptions about American technological superiority upside down.

What is in peril is a global communications system in which various players find ways to integrate their technologies. A technology wrangle involving combatants in a fight for dominance in a data-hungry world is giving new meaning to the word “disruption”.

China’s displeasure with Australia’s role

Behind the scenes, China has made no secret of its angst over Australia’s role as what it perceives to be a stalking horse for Washington in a campaign against Huawei and, by extension, other Chinese technology companies.

A lobbying campaign conducted in 2018 by Andrew Shearer, then deputy head of the Office of National Intelligence, particularly incensed Beijing. He had sought to persuade the UK to exclude Huawei from its 5G build-out.

In 2018, Australia became the first country to bar Huawei from providing 5G technology. Shearer is now cabinet secretary and close to Prime Minister Scott Morrison.

No Australian prime minister has visited Beijing since Malcolm Turnbull in 2016.

Cool relations between Canberra and Beijing can be attributed in great part to these behind-the-scenes lobbying activities against Huawei by a member of the so-called “Five Eyes” intelligence-sharing establishment (in partnership with the US, UK, Canada and New Zealand).

The UK’s decision, despite pressure from US President Donald Trump, to enable Huawei to help build non-core elements of its 5G network is causing a crisis of confidence among “Five Eyes” participants.

How to deal with China in a new era in which American technological dominance is eroding fast lies at the centre of this argument.

Fallout in Australia from internal “Five Eyes” wrangling over the Chinese company emerged in the past week or so. It was revealed Anthony Byrne, the deputy chair of the Australian Parliament’s intelligence committee, had upbraided visiting British Foreign Secretary Dominic Raab over the UK’s decision to allow Huawei to help build its 5G network.

That confrontation was leaked to the media and caused the cancellation of a visit to the UK by leaders of the intelligence committee. Committee chair Andrew Hastie and Byrne will now travel to Washington instead of for consultations on the Huawei issue.

In some respects, these arguments among friends and allies might be regarded as a storm in a teacup since Australian parliamentary committees are relatively powerless.

However, it is not overstating the case to say differences among the “Five Eyes” on the Huawei issue pose a threat to a long-standing Western consensus about how to manage relations with China more generally.

Fighting words from the US 
 
These cracks were visible at the just-concluded Munich security conference. US Secretary of State Mike Pompeo and Defence Secretary Mark Esper warned that alliances, including the future of NATO itself, were in jeopardy if European countries went ahead with using Huawei technology in their 5G networks.

In an unusually sharp and direct criticism of China, Esper described Huawei as the “China poster child for its nefarious industrial strategy”, one that is “fuelled by theft and coercion and the exploitation of free-market, private companies and universities”. He added: "Reliance on Chinese 5G vendors could render our partners’ critical systems vulnerable to disruption, manipulations and espionage. The Chinese Communist Party is heading even faster and further in the wrong direction with more internal repression, more predatory behaviour, more heavy-handedness and a more aggressive military posture. It is essential that the international community wake up to the challenge."

These are fighting words, but it is at least questionable whether Washington, with the assistance of allies like Australia, will prevail in its efforts to shut Huawei and other Chinese technology companies out of the biggest and most lucrative market of the 21st century – advanced technology.

If there was a consensus among the participants in Munich, it was that Western countries needed to tread warily in absorbing Chinese technology into their communications systems to the point where dependence on China would become irreversible.

A smattering of officials, including Fu Ying, former ambassador to Britain and Australia, represented Beijing at the conference. She posed a rhetorical question that will have resonated with some attendees: "Do you really think the democratic system is so fragile it could be threatened by this single high-tech company, Huawei?"

US moves in court against Huawei 
 
Meanwhile, Washington added fuel to an already heated “technology war” by charging Huawei and two of its subsidiaries with federal racketeering and conspiracy to steal trade secrets from US companies.

This represents a significant escalation in the US campaign against Huawei.

Washington is accusing Huawei of purloining trade secrets, including source codes and wireless technology, from six companies. These were not named but are believed to include US technology giants Cisco and Motorola.

These “racketeering” charges are separate from extradition hearings in Canada involving Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder.

Washington is seeking Meng’s extradition on charges of participating in a decade-long attempt by the company to steal state secrets, obstruct a criminal investigation and evade economic sanctions against Iran.

Whether it likes it or not, the Australian government finds itself attached to an American campaign against Huawei and, in turn, a slew of other Chinese companies.

Leaving aside a conventional trade war between the US and China over soybeans and consumer durables, a technology conflict will prove longer-lasting and certainly more disruptive.

(Tony Walker is Adjunct Professor, School of Communications, La Trobe University)

(This article was originally published on The Conversation. <a href="https://theconversation.com/why-the-global-battle-over-huawei-could-prove-more-disruptive-than-trumps-trade-war-with-china-131828">Read the original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

China’s ambassador to Australia, Cheng Jingye, let the cat out of the bag this week when he lambasted Canberra over its decision to exclude Huawei from the build-out of Australia’s 5G network.

China’s ambassador to Australia, Cheng Jingye, let the cat out of the bag this week when he lambasted Canberra over its decision to exclude Huawei from the build-out of Australia’s 5G network. In uncharacteristically sharp diplomatic language, Cheng described Australia’s campaign against Huawei as “politically motivated” and “discriminatory”. This is not the first time Chinese officials have voiced their country’s displeasure with the Australian government’s campaign against Huawei. But Cheng’s public intervention represents the most direct criticism of Australia in what is shaping as a defining issue in relations between China and the West. A burgeoning technology war with China It is now clear America and its allies are engaged in what has the makings of a full-blown technology war. The ultimate destination of this conflict is unclear, but its ramifications will scar international relationships for decades to come. The rawness of this issue is likely to become more pronounced as China spreads its superfast 5G technology across the globe in competition with the more expensive Nokia and Ericsson systems. Huawei technology accounts for about 30% of the world’s mobile technology market, double the reach of its nearest rivals. America and its allies fear Huawei’s penetration – indeed dominance – of the market for 5G will give the Chinese company, and China itself, a “backdoor” into communications systems globally. The battle over Huawei is merely the most visible manifestation of the conflict between the US, the longtime leader in technology, and China, the emerging technology superpower. China’s advances in areas like artificial intelligence are already turning assumptions about American technological superiority upside down. What is in peril is a global communications system in which various players find ways to integrate their technologies. A technology wrangle involving combatants in a fight for dominance in a data-hungry world is giving new meaning to the word “disruption”. China’s displeasure with Australia’s role Behind the scenes, China has made no secret of its angst over Australia’s role as what it perceives to be a stalking horse for Washington in a campaign against Huawei and, by extension, other Chinese technology companies. A lobbying campaign conducted in 2018 by Andrew Shearer, then deputy head of the Office of National Intelligence, particularly incensed Beijing. He had sought to persuade the UK to exclude Huawei from its 5G build-out. In 2018, Australia became the first country to bar Huawei from providing 5G technology. Shearer is now cabinet secretary and close to Prime Minister Scott Morrison. No Australian prime minister has visited Beijing since Malcolm Turnbull in 2016. Cool relations between Canberra and Beijing can be attributed in great part to these behind-the-scenes lobbying activities against Huawei by a member of the so-called “Five Eyes” intelligence-sharing establishment (in partnership with the US, UK, Canada and New Zealand). The UK’s decision, despite pressure from US President Donald Trump, to enable Huawei to help build non-core elements of its 5G network is causing a crisis of confidence among “Five Eyes” participants. How to deal with China in a new era in which American technological dominance is eroding fast lies at the centre of this argument. Fallout in Australia from internal “Five Eyes” wrangling over the Chinese company emerged in the past week or so. It was revealed Anthony Byrne, the deputy chair of the Australian Parliament’s intelligence committee, had upbraided visiting British Foreign Secretary Dominic Raab over the UK’s decision to allow Huawei to help build its 5G network. That confrontation was leaked to the media and caused the cancellation of a visit to the UK by leaders of the intelligence committee. Committee chair Andrew Hastie and Byrne will now travel to Washington instead of for consultations on the Huawei issue. In some respects, these arguments among friends and allies might be regarded as a storm in a teacup since Australian parliamentary committees are relatively powerless. However, it is not overstating the case to say differences among the “Five Eyes” on the Huawei issue pose a threat to a long-standing Western consensus about how to manage relations with China more generally. Fighting words from the US These cracks were visible at the just-concluded Munich security conference. US Secretary of State Mike Pompeo and Defence Secretary Mark Esper warned that alliances, including the future of NATO itself, were in jeopardy if European countries went ahead with using Huawei technology in their 5G networks. In an unusually sharp and direct criticism of China, Esper described Huawei as the “China poster child for its nefarious industrial strategy”, one that is “fuelled by theft and coercion and the exploitation of free-market, private companies and universities”. He added: "Reliance on Chinese 5G vendors could render our partners’ critical systems vulnerable to disruption, manipulations and espionage. The Chinese Communist Party is heading even faster and further in the wrong direction with more internal repression, more predatory behaviour, more heavy-handedness and a more aggressive military posture. It is essential that the international community wake up to the challenge." These are fighting words, but it is at least questionable whether Washington, with the assistance of allies like Australia, will prevail in its efforts to shut Huawei and other Chinese technology companies out of the biggest and most lucrative market of the 21st century – advanced technology. If there was a consensus among the participants in Munich, it was that Western countries needed to tread warily in absorbing Chinese technology into their communications systems to the point where dependence on China would become irreversible. A smattering of officials, including Fu Ying, former ambassador to Britain and Australia, represented Beijing at the conference. She posed a rhetorical question that will have resonated with some attendees: "Do you really think the democratic system is so fragile it could be threatened by this single high-tech company, Huawei?" US moves in court against Huawei Meanwhile, Washington added fuel to an already heated “technology war” by charging Huawei and two of its subsidiaries with federal racketeering and conspiracy to steal trade secrets from US companies. This represents a significant escalation in the US campaign against Huawei. Washington is accusing Huawei of purloining trade secrets, including source codes and wireless technology, from six companies. These were not named but are believed to include US technology giants Cisco and Motorola. These “racketeering” charges are separate from extradition hearings in Canada involving Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder. Washington is seeking Meng’s extradition on charges of participating in a decade-long attempt by the company to steal state secrets, obstruct a criminal investigation and evade economic sanctions against Iran. Whether it likes it or not, the Australian government finds itself attached to an American campaign against Huawei and, in turn, a slew of other Chinese companies. Leaving aside a conventional trade war between the US and China over soybeans and consumer durables, a technology conflict will prove longer-lasting and certainly more disruptive. (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)

Why global battle over Huawei could prove more disruptive than Donald Trump’s trade war with China

US President Donald Trump on Tuesday blasted proposals that could restrict <a href="https://www.wionews.com/world/china-to-grant-tariff-exemptions-on-696-us-goods-to-support-purchases-281418">US companies' ability to supply jet engines and other components</a> to China's aviation industry and said he had instructed his administration to prevent such moves.

The president's intervention illustrated, at least in this case, his desire to prioritize economic benefits over potential competitive pitfalls and national security concerns.

And it contrasts with his administration's <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">treatment of China's telecoms industry</a>; US companies are prevented from trading with Huawei Technologies, the world's largest telecommunications equipment maker, for national security reasons.

But in a series of tweets on Tuesday, Trump said national security should not be used as an "excuse" to make it difficult for foreign countries to buy US products.

"The United States cannot, &amp; will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive," Trump wrote on Twitter.

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The United States cannot, &amp; will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive. We want to sell...
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1229790099866603521?ref_src=twsrc%5Etfw">February 18, 2020</a></blockquote>
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"As an example, I want China to buy our jet engines, the best in the World," he added.

Trump did not identify the restrictions. The White House declined to comment.

<a href="https://www.wionews.com/opinions/more-twists-and-turns-in-us-china-trade-war-170668">Watch: More twists and turns in US-China trade war</a>

The United States and China, the world's two largest economies, have a complicated and competitive relationship. Trump signed a first-phase trade deal with China earlier this year after a long trade war in which the two sides levied significant tariffs on each others' products. Many of those tariffs are still in place.

Trump's series of tweets on Tuesday was an apparent reference to reports over the weekend that the US government is considering whether to block General Electric Co from continuing to supply engines for a new Chinese passenger jet.

Washington is also eyeing limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc.

Central to the possible crackdown on the sale of US parts to China's aircraft industry is whether shipments could fuel the rise of a serious competitor to US-based Boeing Co or boost China's military capabilities.

The Semiconductor Industry Association (SIA) said it welcomed Trump's comments.

“We applaud President Trump’s tweets supporting US companies being able to sell products to China and opposing proposed regulations that would unduly curtail that ability," said John Neuffer, the group's president, in a statement. "As we have discussed with the administration, sales of non-sensitive, commercial products to China drive semiconductor research and innovation, which is critical to America’s economic strength and national security.”

US President Donald Trump on Tuesday blasted proposals that could restrict US companies' ability to supply jet engines and other components to China's aviation industry and said he had instructed his administration to prevent such moves.

US President Donald Trump on Tuesday blasted proposals that could restrict US companies' ability to supply jet engines and other components to China's aviation industry and said he had instructed his administration to prevent such moves. The president's intervention illustrated, at least in this case, his desire to prioritize economic benefits over potential competitive pitfalls and national security concerns. And it contrasts with his administration's treatment of China's telecoms industry; US companies are prevented from trading with Huawei Technologies, the world's largest telecommunications equipment maker, for national security reasons. But in a series of tweets on Tuesday, Trump said national security should not be used as an "excuse" to make it difficult for foreign countries to buy US products. "The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive," Trump wrote on Twitter. The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive. We want to sell... — Donald J. Trump (@realDonaldTrump) February 18, 2020 × "As an example, I want China to buy our jet engines, the best in the World," he added. Trump did not identify the restrictions. The White House declined to comment. Watch: More twists and turns in US-China trade war The United States and China, the world's two largest economies, have a complicated and competitive relationship. Trump signed a first-phase trade deal with China earlier this year after a long trade war in which the two sides levied significant tariffs on each others' products. Many of those tariffs are still in place. Trump's series of tweets on Tuesday was an apparent reference to reports over the weekend that the US government is considering whether to block General Electric Co from continuing to supply engines for a new Chinese passenger jet. Washington is also eyeing limits on other components for Chinese commercial aircraft such as flight control systems made by Honeywell International Inc. Central to the possible crackdown on the sale of US parts to China's aircraft industry is whether shipments could fuel the rise of a serious competitor to US-based Boeing Co or boost China's military capabilities. The Semiconductor Industry Association (SIA) said it welcomed Trump's comments. “We applaud President Trump’s tweets supporting US companies being able to sell products to China and opposing proposed regulations that would unduly curtail that ability," said John Neuffer, the group's president, in a statement. "As we have discussed with the administration, sales of non-sensitive, commercial products to China drive semiconductor research and innovation, which is critical to America’s economic strength and national security.”

Trump blasts proposed restrictions on selling US jet parts to China

China will grant exemptions on retaliatory duties imposed against 696 US goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfil commitments made in its interim trade deal with the United States.

Tuesday's announcement comes after the Phase 1 trade deal between the two countries took effect on February 14 and is the third round of tariff exemptions China has offered on US goods.

China has committed to boosting its purchases of goods and services from the United States by $200 billion over two years as part of the agreement and has already rolled back some additional tariffs on US imports after the deal was signed.

US goods eligible for tariff exemptions include key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil, which were subject to extra tariffs imposed during the escalation of the bilateral trade dispute.

The coronavirus epidemic that emerged late last year in China has raised concerns about its ability to meet the purchasing targets, however. Authorities throughout the country imposed major restriction on travel and transportation to curb the spread of the virus, which has killed nearly 1,900 and infected more than 70,000 in the country.

The containment efforts have kept factories shut or operating with drastically reduced staff, hitting production. The public has also been discouraged from leaving their homes or going to public places, also stunting consumption.

White House adviser Larry Kudlow said earlier this month that Chinese President Xi Jinping told US President Donald Trump during a recent call that China will still meet its Phase 1 trade deal purchasing targets.

Beijing's announcement on Tuesday emphasised that Chinese firms will submit applications for tariff exemptions based on market conditions and commercial considerations.

"Unless the state forcefully asks firms to apply for tariff exemption and buy US soybeans, crushers would still go for Brazilian beans, based on market free will," said a trader, adding that Brazilian beans are of good quality and price this year.

Other products subject to exemption on additional tariffs imposed include denatured ethanol and wheat, corn and sorghum. Some medical devices and metals including copper ore and concentrates, copper scrap and aluminium scrap are also subject to exemption.

Pharmaceutical products such as recombinant human insulin and some antibiotics are also among US products eligible for tariff exemptions.

Firms can start submitting their applications on March 2, and any exemptions granted will be valid for one year.

China will grant exemptions on retaliatory duties imposed against 696 US goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfil commitments made in its interim trade deal with the United States.

China will grant exemptions on retaliatory duties imposed against 696 US goods, the most substantial tariff relief to be offered so far, as Beijing seeks to fulfil commitments made in its interim trade deal with the United States. Tuesday's announcement comes after the Phase 1 trade deal between the two countries took effect on February 14 and is the third round of tariff exemptions China has offered on US goods. China has committed to boosting its purchases of goods and services from the United States by $200 billion over two years as part of the agreement and has already rolled back some additional tariffs on US imports after the deal was signed. US goods eligible for tariff exemptions include key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil, which were subject to extra tariffs imposed during the escalation of the bilateral trade dispute. The coronavirus epidemic that emerged late last year in China has raised concerns about its ability to meet the purchasing targets, however. Authorities throughout the country imposed major restriction on travel and transportation to curb the spread of the virus, which has killed nearly 1,900 and infected more than 70,000 in the country. The containment efforts have kept factories shut or operating with drastically reduced staff, hitting production. The public has also been discouraged from leaving their homes or going to public places, also stunting consumption. White House adviser Larry Kudlow said earlier this month that Chinese President Xi Jinping told US President Donald Trump during a recent call that China will still meet its Phase 1 trade deal purchasing targets. Beijing's announcement on Tuesday emphasised that Chinese firms will submit applications for tariff exemptions based on market conditions and commercial considerations. "Unless the state forcefully asks firms to apply for tariff exemption and buy US soybeans, crushers would still go for Brazilian beans, based on market free will," said a trader, adding that Brazilian beans are of good quality and price this year. Other products subject to exemption on additional tariffs imposed include denatured ethanol and wheat, corn and sorghum. Some medical devices and metals including copper ore and concentrates, copper scrap and aluminium scrap are also subject to exemption. Pharmaceutical products such as recombinant human insulin and some antibiotics are also among US products eligible for tariff exemptions. Firms can start submitting their applications on March 2, and any exemptions granted will be valid for one year.

China to grant tariff exemptions on 696 US goods to support purchases

<a href="https://www.wionews.com/india-news/twitter-war-rages-after-microsoft-ceo-satya-nadella-calls-citizenship-amendment-act-sad-274162">Microsoft</a>'s CEO <a href="https://www.wionews.com/videos/microsoft-ceo-satya-nadella-raises-concern-over-caa-274178">Satya Nadella</a>&nbsp;speaking at a conference in Davos said that he is concerned that the lack of trust between the <a href="https://www.wionews.com/world/trump-tears-into-environmental-doom-mongers-at-davos-forum-275841">US </a>and <a href="https://www.wionews.com/india-news/china-coronavirus-viral-outbreak-forces-india-to-strengthen-airport-safety-laws-275899">China </a>will adversely affect economic growth and increase technology costs.

''The two leading economies of the world need to reconcile rather than create&nbsp;separate supply chains for every country,'' he said in <a href="https://www.wionews.com/world/trump-rejects-climate-prophets-of-doom-as-thunberg-warns-davos-275777">Davos.</a>

Also read:&nbsp;<a href="Trump rejects climate 'prophets of doom' as Thunberg warns Davos">Trump rejects climate 'prophets of doom' as Thunberg warns Davos</a>

He gave the example of $470 billion semiconductor industry to substantiate his views.

According to him, ''it is a cause of big concern as the world is on the verge of a revolution in technology and artificial intelligence''.

He termed the <a href="https://www.wionews.com/world/china-virus-us-confirms-first-case-of-coronavirus-death-toll-reaches-nine-275853">US-China </a>'phase one' <a href="https://www.wionews.com/business-economy/oil-ends-higher-as-trade-deal-progresses-spurs-energy-demand-hopes-275526">trade deal</a> as ''insufficient''.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/oil-ends-higher-as-trade-deal-progresses-spurs-energy-demand-hopes-275526">Oil ends higher as trade deals progress; spurs energy demand hopes</a>

The US administration is contemplating to constrict the ability of countries to trade with&nbsp;<a href="https://www.wionews.com/videos/huawei-cfo-faces-extradition-trial-hearing-starts-in-vancouver-275634">Huawei </a>which is one of the biggest tech company in China.

Additionally, the US has also been pressuring other countries across the globe not to use 5G mobile networks.

Nadella also said:&nbsp;''Countries need to realise that they will benefit more from a unified internet system rather than a bifurcated one''.

Microsoft's CEO Satya Nadella speaking at a conference in Davos said that he is concerned that the lack of trust between the US and China will adversely affect economic growth and increase technology costs.

Microsoft's CEO Satya Nadella speaking at a conference in Davos said that he is concerned that the lack of trust between the US and China will adversely affect economic growth and increase technology costs. ''The two leading economies of the world need to reconcile rather than create separate supply chains for every country,'' he said in Davos. Also read: Trump rejects climate 'prophets of doom' as Thunberg warns Davos He gave the example of $470 billion semiconductor industry to substantiate his views. According to him, ''it is a cause of big concern as the world is on the verge of a revolution in technology and artificial intelligence''. He termed the US-China 'phase one' trade deal as ''insufficient''. Also read: Oil ends higher as trade deals progress; spurs energy demand hopes The US administration is contemplating to constrict the ability of countries to trade with Huawei which is one of the biggest tech company in China. Additionally, the US has also been pressuring other countries across the globe not to use 5G mobile networks. Nadella also said: ''Countries need to realise that they will benefit more from a unified internet system rather than a bifurcated one''.

US, China should reconcile rather than create separate supply chains: Microsoft CEO Satya Nadella at Davos

<a href="https://www.wionews.com/videos/china-myanmar-sign-33-agreements-275157">China </a>will negotiate with American companies and increase imports of <a href="https://www.wionews.com/world/tree-cover-can-lower-daytime-temperatures-in-summer-study-275238">US&nbsp;</a>goods and products according to market principles, an official with its state planner said on Sunday.

The United States has high quality supply in the fields of energy, manufactured goods, agricultural products, medical care and financial services, said Meng Wei, spokesperson for China's National Development and Reform Commission (NDRC), at a press conference on Sunday.

Also read:<a href="https://www.wionews.com/business-economy/indian-markets-scale-a-new-high-after-us-china-phase-one-trade-deal-274665">&nbsp;US-China trade deal: Hits and misses for India</a>

China will boost purchases of US&nbsp;goods and services by $200 billion over two years in exchange for the rolling back of some tariffs under an initial trade deal between the world's two largest economies.

Chinese Vice Premier Liu He, who signed the trade deal with US&nbsp;President <a href="https://www.wionews.com/world/trump-marks-us-japan-security-pact-with-call-for-stronger-deeper-alliance-275202">Donald Trump</a> earlier this week, said the deal would not affect "third parties' interests", apparently in reference to deals made with other suppliers of farm goods.

Also read:&nbsp;<a href="https://www.wionews.com/india-news/kem-chho-trump-us-president-to-visit-ahmedabad-delhi-in-february-275056">'Howdy Trump'? US President to visit Ahmedabad, Delhi in February</a>

Chinese companies will import US&nbsp;agricultural goods according to consumers' need, and demand and supply in the market, Liu told reporters, according to CCTV.

China will negotiate with American companies and increase imports of US goods and products according to market principles, an official with its state planner said on Sunday.

China will negotiate with American companies and increase imports of US goods and products according to market principles, an official with its state planner said on Sunday. The United States has high quality supply in the fields of energy, manufactured goods, agricultural products, medical care and financial services, said Meng Wei, spokesperson for China's National Development and Reform Commission (NDRC), at a press conference on Sunday. Also read: US-China trade deal: Hits and misses for India China will boost purchases of US goods and services by $200 billion over two years in exchange for the rolling back of some tariffs under an initial trade deal between the world's two largest economies. Chinese Vice Premier Liu He, who signed the trade deal with US President Donald Trump earlier this week, said the deal would not affect "third parties' interests", apparently in reference to deals made with other suppliers of farm goods. Also read: 'Howdy Trump'? US President to visit Ahmedabad, Delhi in February Chinese companies will import US agricultural goods according to consumers' need, and demand and supply in the market, Liu told reporters, according to CCTV.

China will increase imports from US according to 'market principles': Official

By Penelope B Prime

US President Donald Trump signed a trade deal with China on January 15 intended as a first phase toward a more comprehensive agreement between the two countries.

In exchange for some tariff relief, China promised to buy an additional $200 billion in American goods and services over the next two years and make structural reforms that would provide more protection for US intellectual property. It still leaves about $360 billion in punitive tariffs on Chinese imports in place – and more sanctions would be triggered if China fails to meet the terms of the deal.

Good news, right? The end of the trade war is nigh? Don’t get your hopes up.

While business leaders in both countries will be temporarily relieved, the underlying tensions between them will not end easily.

As an economist who closely studies the US relationship with China, I believe there are fundamental issues that won’t be resolved anytime soon.

Doing it in phases

Tariffs and other trade issues have received most of the attention during the trade war, but the more fundamental – and difficult – challenges are with lax intellectual property protection and China’s industrial policy.

The US is unhappy with China’s use of these tools to develop its economy and to help its companies compete – unfairly, from the US&nbsp;perspective. And many of the Trump administration’s demands challenge China’s normal business and policy practices.

China’s leaders can’t be seen by Chinese citizens as giving into the US, while Trump wants to show that he is tough on China as part of his campaign for reelection. This makes the negotiations very sensitive on both sides.

That’s why American and Chinese negotiators, who have been engaged in talks for almost two years, decided to try to get to an agreement in phases.

Phase one has focused on the trade balance and tariffs, with some provisions relating to technology transfer, intellectual property and opening China’s economy to foreign business. Phase two is expected to then deal more deeply with intellectual property enforcement and economic reform in China.

Given the negotiations went on for so long, it’s fair to ask, why are these issues so difficult to resolve? I believe there are basically three factors that have made finding much common ground difficult – and phase one won’t change that.

Government subsidies

First, China’s successful growth has combined market competition with government-led industrial policy. For example, when China’s leaders decided the economy needed more innovation, it created incentives and targets for companies and research institutes to create patents. The number of patents filed has soared as a result.

A wide range of government subsidies is used to direct and assist private as well as state investment in similar ways.

The US does this as well but not on the same scale, and therefore views it as unfair.

From China’s perspective, however, it is not reasonable for the US to require China to change its development model in exchange for removing tariffs.

Protecting intellectual property

Getting China to do more to protect the intellectual property of advanced technologies is another especially thorny issue.

Both countries are facing economic challenges that can be aided by improved technology. But since in many areas Chinese capabilities have caught up with those of the US, or are being rapidly developed, there is much more pressure from the U.S. for China to accept global norms on intellectual property rights.

Even while China’s own IP protections have improved at home, there is ample evidence that Chinese companies have copied foreign technology without permission or payment, despite China’s acceptance of IP protection as part of World Trade Organization membership.

Foreign companies also report being compelled to share advanced technology in order to do business in China. While, technically, the companies can decide to pull out of China’s market, the US argues that this hurts the competitiveness of US businesses. It either means they must lose their technological advantage or not have access to the business opportunities that China’s large market offers. There is no reciprocal requirement of Chinese companies doing business in the US.

The phase one agreement begins to deal with the IP issues and includes a complaint process, which is a step in the right direction. It remains to be seen, however, how extensive it will be and how quickly it’ll be implemented given that Chinese companies will still face intense pressure from the government to advance China’s domestic capabilities.

Military concerns

Finally, technology capabilities are related to growing military concerns.

Many of the advanced technologies that China is racing to obtain have military as well as civilian uses. US policy under the current administration has indicated a wariness about China’s military intentions and is considering options.

This wariness has been bolstered by China’s military buildup, especially naval capabilities in Asia. Some advisers to the Trump administration argue that China’s ultimate long-term goal is to replace the US as the dominant global power.

China’s rise

Conflicting differences in the US and China’s economic systems were less of a problem so long as Chinese companies lagged far behind their American counterparts in terms of technology and competitiveness.

As China has grown more technologically advanced, its relationship with the US has become increasingly strained. This will only get worse as China’s economy develops and its companies compete more with the US and others.

The phase one agreement represents an important step in re-setting the dialogue between the two countries in a positive direction. Whether we see phase two will depend on open discussion and trust.

Good relations with the US have been one of the foundations of China’s successful development and entry into global markets. Chinese leaders are now weighing how much these good relations with the US matter to their future.

(Penelope B Prime is Clinical Professor of International Business, Georgia State University)

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/us-china-trade-pact-president-trump-just-signed-fails-to-resolve-3-fundamental-issues-130017">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 Penelope B Prime US President Donald Trump signed a trade deal with China on January 15 intended as a first phase toward a more comprehensive agreement between the two countries.

By Penelope B Prime US President Donald Trump signed a trade deal with China on January 15 intended as a first phase toward a more comprehensive agreement between the two countries. In exchange for some tariff relief, China promised to buy an additional $200 billion in American goods and services over the next two years and make structural reforms that would provide more protection for US intellectual property. It still leaves about $360 billion in punitive tariffs on Chinese imports in place – and more sanctions would be triggered if China fails to meet the terms of the deal. Good news, right? The end of the trade war is nigh? Don’t get your hopes up. While business leaders in both countries will be temporarily relieved, the underlying tensions between them will not end easily. As an economist who closely studies the US relationship with China, I believe there are fundamental issues that won’t be resolved anytime soon. Doing it in phases Tariffs and other trade issues have received most of the attention during the trade war, but the more fundamental – and difficult – challenges are with lax intellectual property protection and China’s industrial policy. The US is unhappy with China’s use of these tools to develop its economy and to help its companies compete – unfairly, from the US perspective. And many of the Trump administration’s demands challenge China’s normal business and policy practices. China’s leaders can’t be seen by Chinese citizens as giving into the US, while Trump wants to show that he is tough on China as part of his campaign for reelection. This makes the negotiations very sensitive on both sides. That’s why American and Chinese negotiators, who have been engaged in talks for almost two years, decided to try to get to an agreement in phases. Phase one has focused on the trade balance and tariffs, with some provisions relating to technology transfer, intellectual property and opening China’s economy to foreign business. Phase two is expected to then deal more deeply with intellectual property enforcement and economic reform in China. Given the negotiations went on for so long, it’s fair to ask, why are these issues so difficult to resolve? I believe there are basically three factors that have made finding much common ground difficult – and phase one won’t change that. Government subsidies First, China’s successful growth has combined market competition with government-led industrial policy. For example, when China’s leaders decided the economy needed more innovation, it created incentives and targets for companies and research institutes to create patents. The number of patents filed has soared as a result. A wide range of government subsidies is used to direct and assist private as well as state investment in similar ways. The US does this as well but not on the same scale, and therefore views it as unfair. From China’s perspective, however, it is not reasonable for the US to require China to change its development model in exchange for removing tariffs. Protecting intellectual property Getting China to do more to protect the intellectual property of advanced technologies is another especially thorny issue. Both countries are facing economic challenges that can be aided by improved technology. But since in many areas Chinese capabilities have caught up with those of the US, or are being rapidly developed, there is much more pressure from the U.S. for China to accept global norms on intellectual property rights. Even while China’s own IP protections have improved at home, there is ample evidence that Chinese companies have copied foreign technology without permission or payment, despite China’s acceptance of IP protection as part of World Trade Organization membership. Foreign companies also report being compelled to share advanced technology in order to do business in China. While, technically, the companies can decide to pull out of China’s market, the US argues that this hurts the competitiveness of US businesses. It either means they must lose their technological advantage or not have access to the business opportunities that China’s large market offers. There is no reciprocal requirement of Chinese companies doing business in the US. The phase one agreement begins to deal with the IP issues and includes a complaint process, which is a step in the right direction. It remains to be seen, however, how extensive it will be and how quickly it’ll be implemented given that Chinese companies will still face intense pressure from the government to advance China’s domestic capabilities. Military concerns Finally, technology capabilities are related to growing military concerns. Many of the advanced technologies that China is racing to obtain have military as well as civilian uses. US policy under the current administration has indicated a wariness about China’s military intentions and is considering options. This wariness has been bolstered by China’s military buildup, especially naval capabilities in Asia. Some advisers to the Trump administration argue that China’s ultimate long-term goal is to replace the US as the dominant global power. China’s rise Conflicting differences in the US and China’s economic systems were less of a problem so long as Chinese companies lagged far behind their American counterparts in terms of technology and competitiveness. As China has grown more technologically advanced, its relationship with the US has become increasingly strained. This will only get worse as China’s economy develops and its companies compete more with the US and others. The phase one agreement represents an important step in re-setting the dialogue between the two countries in a positive direction. Whether we see phase two will depend on open discussion and trust. Good relations with the US have been one of the foundations of China’s successful development and entry into global markets. Chinese leaders are now weighing how much these good relations with the US matter to their future. (Penelope B Prime is Clinical Professor of International Business, Georgia State University) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

US-China trade pact fails to resolve three fundamental issues

The European Union will check to see whether a major <a href="https://www.wionews.com/business-economy/indian-markets-scale-a-new-high-after-us-china-phase-one-trade-deal-274665">deal struck by the United States and China</a> complies with global trade rules, the EU's trade chief said on Thursday.

On Wednesday, Washington and Beijing scaled back their <a href="https://www.wionews.com/world/key-elements-of-the-us-china-trade-deal-a-pact-to-pause-the-economic-conflict-274516">18-month trade row</a> that has hit global economic growth by signing an initial agreement under which China will boost its buying of US&nbsp;goods and services.

"The devil is in the detail," EU Trade Commissioner Phil Hogan told a conference in London, speaking by video link from Washington where he is meeting US&nbsp;officials this week. He added the details were, so far, "a bit sketchy".

"They have stepped outside the usual framework for doing deals ... and they are dealing directly on a bilateral basis and we will have to assess whether it is WTO compliant."

In pics: <a href="https://www.wionews.com/photos/us-china-trade-deal-biggest-winners-losers-in-phase-1-274683">US-China trade deal - Biggest winners &amp; losers in phase 1</a>

Hogan said "structural reforms" in China the EU and the United States wanted were not addressed in the agreement and the EU wanted to see what was on the table in the second phase of negotiations between the United States and China.

He also said the United States and the EU urgently needed to resolve a dispute over aircraft subsidies. Only Beijing and the Chinese aerospace industry, he said, would ultimately benefit from a tit-for-tat transatlantic tariff dispute.

Asked about a US-French row over a digital tax which has seen Washington threaten to impose duties of up to 100% on French goods, Hogan said he thought eventually a way of implementing a global tax on technology giants such as Amazon and Google would be found.

"At the end of the day I think everybody accepts, including the United States, that there will be a global tax to deal with technology companies," he said, adding that it might take until 2021 or 2022 for talks to deepen.

On long-delayed reform of the World Trade Organization, Hogan said he expected the United States to move forward only in 2021 after the presidential election in November this year.

He also reiterated comments by EU Commission President Ursula von der Leyen last week who said it will be impossible for Britain to negotiate all aspects of its future relationship with the EU by the end of 2020, the deadline set by Prime Minister Boris Johnson, and both sides would have to prioritise.

"We need to wake up to this reality that gamesmanship and brinkmanship are not going to work on this occasion," Hogan said at the CSIS think tank in Washington.

The European Union will check to see whether a major deal struck by the United States and China complies with global trade rules, the EU's trade chief said on Thursday.

The European Union will check to see whether a major deal struck by the United States and China complies with global trade rules, the EU's trade chief said on Thursday. On Wednesday, Washington and Beijing scaled back their 18-month trade row that has hit global economic growth by signing an initial agreement under which China will boost its buying of US goods and services. "The devil is in the detail," EU Trade Commissioner Phil Hogan told a conference in London, speaking by video link from Washington where he is meeting US officials this week. He added the details were, so far, "a bit sketchy". "They have stepped outside the usual framework for doing deals ... and they are dealing directly on a bilateral basis and we will have to assess whether it is WTO compliant." In pics: US-China trade deal - Biggest winners & losers in phase 1 Hogan said "structural reforms" in China the EU and the United States wanted were not addressed in the agreement and the EU wanted to see what was on the table in the second phase of negotiations between the United States and China. He also said the United States and the EU urgently needed to resolve a dispute over aircraft subsidies. Only Beijing and the Chinese aerospace industry, he said, would ultimately benefit from a tit-for-tat transatlantic tariff dispute. Asked about a US-French row over a digital tax which has seen Washington threaten to impose duties of up to 100% on French goods, Hogan said he thought eventually a way of implementing a global tax on technology giants such as Amazon and Google would be found. "At the end of the day I think everybody accepts, including the United States, that there will be a global tax to deal with technology companies," he said, adding that it might take until 2021 or 2022 for talks to deepen. On long-delayed reform of the World Trade Organization, Hogan said he expected the United States to move forward only in 2021 after the presidential election in November this year. He also reiterated comments by EU Commission President Ursula von der Leyen last week who said it will be impossible for Britain to negotiate all aspects of its future relationship with the EU by the end of 2020, the deadline set by Prime Minister Boris Johnson, and both sides would have to prioritise. "We need to wake up to this reality that gamesmanship and brinkmanship are not going to work on this occasion," Hogan said at the CSIS think tank in Washington.

'Devil is in the detail': EU says will check US-China deal

<a href="https://www.wionews.com/business-economy/sensex-hits-42000-for-first-time-nifty-at-a-record-high-274544">Indian markets </a>have climbed to&nbsp;a record high with the announcement of phase one trade deal between the<a href="https://www.wionews.com/opinions-blogs/us-iran-conflict-a-high-stakes-bet-on-who-blinks-first-274636"> US</a> and<a href="https://www.wionews.com/india-news/it-isnt-like-youve-got-china-on-your-border-when-trump-shocked-modi-with-his-remark-274653"> China</a>.

<a href="https://www.wionews.com/world/key-elements-of-the-us-china-trade-deal-a-pact-to-pause-the-economic-conflict-274516">Also read:&nbsp;Key elements of the US-China trade deal: A pact to pause the economic conflict</a>

Although it's just the first step, this deal between the world's two largest economies can benefit <a href="https://www.wionews.com/south-asia/family-of-british-explorer-return-old-buddha-statue-to-sri-lankan-temple-274652">Asia</a>'s third-largest economy India in several areas.

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Firstly, if <a href="https://www.wionews.com/opinions/wion-edit-inside-chinas-trafficking-problem-266666">China</a> starts exporting goods to the US which is its biggest market, then there will probably be a reduction&nbsp;in the dumping of unsold goods to&nbsp;India.

The global trade wars have increased the apprehensions of the global economies which are getting into recession and&nbsp;demand slowing.

So, this deal will indirectly help India by keeping the demand intact in many other markets.

But the trade deal will have a negatives side as well.&nbsp;

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The renewed demand in these economies will yield a price hike in oil prices which will, in turn, will impact India as it imports over 80 per cent of its crude oil.

With the pre-trade war levels due to this deal, India will also miss the opportunity to be the manufacturing hub of the world, as some companies had earlier shown interest in shifting their manufacturing base to India from China, owing to high US tariffs.

Indian markets have climbed to a record high with the announcement of phase one trade deal between the US and China. Also read: Key elements of the US-China trade deal: A pact to pause the economic conflict Although it's just the first step, this deal between the world's two largest economies can benefit Asia's third-largest economy India in several areas.

Indian markets have climbed to a record high with the announcement of phase one trade deal between the US and China. Also read: Key elements of the US-China trade deal: A pact to pause the economic conflict Although it's just the first step, this deal between the world's two largest economies can benefit Asia's third-largest economy India in several areas. × Firstly, if China starts exporting goods to the US which is its biggest market, then there will probably be a reduction in the dumping of unsold goods to India. The global trade wars have increased the apprehensions of the global economies which are getting into recession and demand slowing. So, this deal will indirectly help India by keeping the demand intact in many other markets. But the trade deal will have a negatives side as well. × The renewed demand in these economies will yield a price hike in oil prices which will, in turn, will impact India as it imports over 80 per cent of its crude oil. With the pre-trade war levels due to this deal, India will also miss the opportunity to be the manufacturing hub of the world, as some companies had earlier shown interest in shifting their manufacturing base to India from China, owing to high US tariffs.

US-China trade deal: Hits and misses for India

The US-China trade deal has provided a boost to mobilise American aircraft manufacturer Boeing. The planemaker’s widebody aircraft factory in Everett, Boeing Chief Executive Dennis Muilenburg cautioned that it was “tough to predict” the timing of a potential trade deal between the United States and China. He added, "We are hopeful that if there is a trade solution, it will be beneficial to airplane orders".

Aircraft manufacturer Boeing celebrates US-China trade deal

Asian shares rose to new 19-month highs on Monday ahead of the expected signing on <a href="https://www.wionews.com/world/details-of-us-china-deal-to-be-published-after-signing-white-house-273483">Phase One</a>&nbsp;China-US&nbsp;trade deal, although markets have yet to see the details of the agreement.

<a href="https://www.wionews.com/business-economy/nifty-sensex-headed-for-weekly-gain-as-mideast-tensions-ease-273346">MSCI's broadest index</a> of Asia-Pacific shares outside Japan was 0.47 per cent&nbsp;higher, touching its highest point since June 2018. Japanese markets were closed for a holiday.

South Korea's trade-sensitive Kospi added 0.73 per cent&nbsp;and Hong Kong's Hang Seng was up 0.74 per cent, while Taiwan shares added 0.6 per cent&nbsp;in the first trading day after Taiwanese re-elected President <a href="https://www.wionews.com/world/hong-kongs-strengths-as-global-financial-hub-intact-despite-protests-carrie-lam-273828">Tsai Ing-wen</a> by a landslide on Saturday.

Mainland Chinese shares lagged the regional index after China's major equity indexes logged their sixth consecutive weekly rise last week, the longest such streak since the first quarter of 2019.

The benchmark <a href="https://www.wionews.com/business-economy/sensex-jumps-634-points-as-us-iran-tensions-ease-auto-and-realty-stocks-gain-273229">Shanghai Composite Index</a> ended the morning session up just 0.06 per cent.

Investors in China are looking ahead to trade and economic growth data due this week, which is expected to shed more light on some early signs of economic improvement after the country logged its slowest pace of growth in nearly three decades in the third quarter.

Japan's <a href="https://www.wionews.com/business-economy/asian-shares-erase-losses-as-mideast-tensions-ease-oil-ticks-up-273093">Nikkei</a> was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting US&nbsp;military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities.

E-Mini futures for the <a href="https://www.wionews.com/business-economy/global-markets-stocks-march-back-to-record-highs-as-middle-east-tensions-ease-273438">S&amp;P 500</a> edged up 0.28 per cent, to be just off all-time highs.

The main event of the week will be the signing of the Phase One&nbsp;trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony.

"A calmer geopolitical backdrop and the signing of the US‑China Phase One&nbsp;agreement is, on balance, favourable for global growth," said Joseph Capurso, an FX strategist at CBA.

"However, the 86-page Phase One&nbsp;<a href="https://www.wionews.com/world/chinas-vice-premier-liu-to-sign-us-trade-deal-next-week-in-washington-273242">agreement</a> has not yet been made public.&nbsp;There are doubts how comprehensive the deal is, and whether the Phase One&nbsp;agreement will be implemented in full by both governments."

Washington has reserved the right to reimpose tariffs if it judges China is not abiding by the deal.

"If there is any surprise from the Phase One&nbsp;deal&nbsp;that may actually cause some kind of volatility," said Tommy Xie, economist and head of greater China research at OCBC in Singapore.

"People are really focused on whether China is really committed to purchasing additional $200 billion in goods and services from the US&nbsp;over the next two years, there's not much commitment from China yet."

Xie said China's fourth-quarter and 2019 full-year GDP figures, due on Friday, are also likely to draw close scrutiny as investors look for signs that improvements seen in recent manufacturing surveys are reflected in broader growth and investment figures.

<a href="https://www.wionews.com/business-economy/sp-500-snaps-win-streak-as-middle-east-tensions-push-down-wall-street-272037">Wall Street</a> slipped and bonds rallied on Friday when data showed US&nbsp;nonfarm payrolls missed forecasts with a rise of 145,000, while wages and hours worked were soft.

"This is the perfect employment report for the Fed to continue to run the economy 'hot', as views on the natural rate of unemployment continue to drop," said Alan Ruskin, Deutsche Bank's global head of FX strategy. "This is perfect for risky assets."&nbsp;

On Monday, the euro gained 0.06 per cent&nbsp;to $1.1126, up from a $1.1083 low on Friday. Support comes in around $1.1060, while the recent peak at $1.1239 marks stiff resistance.

The dollar was firm on the yen at 109.61 but faces tough resistance around 109.70 where rallies have repeatedly failed in the past couple of months.

Against a basket of currencies, the dollar was stuck at 97.357, well within the recent trading range of 96.355 to 97.817.

The pound dipped 0.18 per cent&nbsp;to $1.3035 after <a href="https://www.wionews.com/business-economy/bank-of-england-sam-woods-warns-financial-sector-may-crackdown-273799">Bank of England</a> policymaker Gertjan Vlieghe said he will vote for a cut in interest rates later this month, barring an "imminent and significant" improvement in the growth data.

Spot gold slipped 0.37 per cent to $1,556.30 per ounce, having hit a seven-year top last week of $1,610.90 at the height of <a href="https://www.wionews.com/world/do-not-kill-your-protesters-us-president-trump-to-iranian-authorities-273818">Iran-US&nbsp;tensions</a>.

Oil prices were slightly firmer after suffering the first weekly loss since late November.&nbsp;

<a href="https://www.wionews.com/business-economy/oil-edges-above-65-as-middle-east-concerns-support-273441">Brent crude</a> futures were up 6 cents at $65.04 a barrel, while US&nbsp;crude added 10 cents to $59.14 a barrel.

Asian shares rose to new 19-month highs on Monday ahead of the expected signing on Phase One China-US trade deal, although markets have yet to see the details of the agreement.

Asian shares rose to new 19-month highs on Monday ahead of the expected signing on Phase One China-US trade deal, although markets have yet to see the details of the agreement. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.47 per cent higher, touching its highest point since June 2018. Japanese markets were closed for a holiday. South Korea's trade-sensitive Kospi added 0.73 per cent and Hong Kong's Hang Seng was up 0.74 per cent, while Taiwan shares added 0.6 per cent in the first trading day after Taiwanese re-elected President Tsai Ing-wen by a landslide on Saturday. Mainland Chinese shares lagged the regional index after China's major equity indexes logged their sixth consecutive weekly rise last week, the longest such streak since the first quarter of 2019. The benchmark Shanghai Composite Index ended the morning session up just 0.06 per cent. Investors in China are looking ahead to trade and economic growth data due this week, which is expected to shed more light on some early signs of economic improvement after the country logged its slowest pace of growth in nearly three decades in the third quarter. Japan's Nikkei was closed for a holiday. It fell sharply early last week when Iran attacked bases hosting US military in Iraq, only to rally almost a thousand points when the two countries stepped back from hostilities. E-Mini futures for the S&P 500 edged up 0.28 per cent, to be just off all-time highs. The main event of the week will be the signing of the Phase One trade deal between the United States and China on Wednesday. The Trump administration has invited at least 200 people to the White House for the ceremony. "A calmer geopolitical backdrop and the signing of the US‑China Phase One agreement is, on balance, favourable for global growth," said Joseph Capurso, an FX strategist at CBA. "However, the 86-page Phase One agreement has not yet been made public. There are doubts how comprehensive the deal is, and whether the Phase One agreement will be implemented in full by both governments." Washington has reserved the right to reimpose tariffs if it judges China is not abiding by the deal. "If there is any surprise from the Phase One deal that may actually cause some kind of volatility," said Tommy Xie, economist and head of greater China research at OCBC in Singapore. "People are really focused on whether China is really committed to purchasing additional $200 billion in goods and services from the US over the next two years, there's not much commitment from China yet." Xie said China's fourth-quarter and 2019 full-year GDP figures, due on Friday, are also likely to draw close scrutiny as investors look for signs that improvements seen in recent manufacturing surveys are reflected in broader growth and investment figures. Wall Street slipped and bonds rallied on Friday when data showed US nonfarm payrolls missed forecasts with a rise of 145,000, while wages and hours worked were soft. "This is the perfect employment report for the Fed to continue to run the economy 'hot', as views on the natural rate of unemployment continue to drop," said Alan Ruskin, Deutsche Bank's global head of FX strategy. "This is perfect for risky assets." On Monday, the euro gained 0.06 per cent to $1.1126, up from a $1.1083 low on Friday. Support comes in around $1.1060, while the recent peak at $1.1239 marks stiff resistance. The dollar was firm on the yen at 109.61 but faces tough resistance around 109.70 where rallies have repeatedly failed in the past couple of months. Against a basket of currencies, the dollar was stuck at 97.357, well within the recent trading range of 96.355 to 97.817. The pound dipped 0.18 per cent to $1.3035 after Bank of England policymaker Gertjan Vlieghe said he will vote for a cut in interest rates later this month, barring an "imminent and significant" improvement in the growth data. Spot gold slipped 0.37 per cent to $1,556.30 per ounce, having hit a seven-year top last week of $1,610.90 at the height of Iran-US tensions. Oil prices were slightly firmer after suffering the first weekly loss since late November. Brent crude futures were up 6 cents at $65.04 a barrel, while US crude added 10 cents to $59.14 a barrel.

Asian shares rise ahead of US-China 'phase one' trade deal

<a href="https://www.wionews.com/business-economy/global-markets-bonds-reign-supreme-equities-struggle-on-recession-brexit-fears-246318">World stocks</a> set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in <a href="https://www.wionews.com/opinions/why-did-iran-and-us-step-back-from-all-out-war-273243">US-Iran </a>tensions and looked instead toward prospects of improved global growth.

Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely.

The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent&nbsp;on Friday to hit a new record high. It is almost 1.5 percent&nbsp;above the lows seen on Monday.

European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1&nbsp;and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged.

The three major share indexes on Wall Street touched new record highs on Thursday, and S&amp;P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US&nbsp;non-farm payrolls data due at 1330 GMT.

A Reuters poll of economists is forecasting the <a href="https://www.wionews.com/opinions/could-a-weakening-us-economy-imperil-trumps-trade-war-against-china-226753">US&nbsp;economy</a> will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength.

Stock markets have got off to a decent start in 2019 despite US&nbsp;President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad.

FULL CIRCLE

"In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets.

"Investors now have the opportunity to focus on the signing of the new <a href="https://www.wionews.com/world/no-phase-two-us-china-deal-on-the-horizon-officials-say-264312">US-China phase one trade</a> deal next week, as well as the health of the US&nbsp;economy today, and in particular the labour market which has continued to look resilient," he added.

Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent&nbsp;on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal.

MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US&nbsp;rate cuts last year.

Safe haven assets extended their drop.

Gold eased 0.1&nbsp;percent&nbsp;&nbsp;to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday.

Against the Japanese yen, which investors often buy in times of uncertainty, the US&nbsp;dollar strengthened 0.2percent&nbsp;&nbsp;to a two-week high of 109.65 yen.

The dollar was slightly firmer. The euro dropped 0.1percent&nbsp;to $1.1085, its lowest in about two weeks.

Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses.

Brent crude rose 0.3&nbsp;percent&nbsp;&nbsp;to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%.

US&nbsp;crude oil rallied 0.22percent&nbsp;&nbsp;to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close.

Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday.

The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets.

The 10-year US&nbsp;Treasury yield slipped to 1.852 percent&nbsp;&nbsp;but it too remains up more than 6 basis points on the week.

"With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth.

World stocks set new record highs on Friday and the prices of safe-haven assets such as gold pulled back as investors cheered an apparent de-escalation in US-Iran tensions and looked instead toward prospects of improved global growth. Markets have swiftly reversed the sharp falls seen at the start of the week after the United States killed Iran's most senior general, as investors have concluded that a full-scale military confrontation is unlikely. The MSCI world equity index, which tracks shares in 49 countries, has quickly resumed its rally and added another 0.12 percent on Friday to hit a new record high. It is almost 1.5 percent above the lows seen on Monday. European shares also rose, although not quite hitting new records. The pan-European Euro Stoxx 50 gained 0.1 and the German DAX 0.23 percent, while Britain's FTSE 100 was unchanged. The three major share indexes on Wall Street touched new record highs on Thursday, and S&P 500 futures were 0.28 percent higher, pointing to a stronger open ahead of all-important US non-farm payrolls data due at 1330 GMT. A Reuters poll of economists is forecasting the US economy will have added 164,000 jobs in December, down from 254,000 in November, typically a strong month for hiring. Investors will also be focusing on underlying wage growth data for a gauge of underlying labour market strength. Stock markets have got off to a decent start in 2019 despite US President Donald Trump's decision to kill military commander Qassem Soleimani, the second most powerful figure in Iran, in a missile strike in Baghdad. FULL CIRCLE "In the space of a few days we appear to have swung full circle; with investors seem convinced that the problems in the Middle East appear to have settled down, at least for the time being," said Michael Hewson, chief markets analyst at CMC Markets. "Investors now have the opportunity to focus on the signing of the new US-China phase one trade deal next week, as well as the health of the US economy today, and in particular the labour market which has continued to look resilient," he added. Adding to the bullish mood, investors welcomed news that sales of Apple's iPhones in China in December jumped more than 18 percent on the year. They digested the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal. MSCI's emerging market currency index, although little changed on Friday, hit 1-1/2-year highs on Thursday in what is likely to be its sixth straight week of gains. It has also benefited from three US rate cuts last year. Safe haven assets extended their drop. Gold eased 0.1 percent to $1,550 per ounce from a seven-year high of $1,610.90 hit right after Iran's missile attack on Wednesday. Against the Japanese yen, which investors often buy in times of uncertainty, the US dollar strengthened 0.2percent to a two-week high of 109.65 yen. The dollar was slightly firmer. The euro dropped 0.1percent to $1.1085, its lowest in about two weeks. Oil prices, which briefly spiked at the start of the week on worries that tensions with Iran would disrupt global supplies, recovered some of their subsequent losses. Brent crude rose 0.3 percent to $65.57 a barrel and was heading for its first decline in six weeks and its biggest since October, down around 4.5%. US crude oil rallied 0.22percent to $59.69 a barrel but was also on track for its first weekly drop in six, falling 5.3% from last Friday's close. Government bond yields, which rose on Thursday as investors' nerves about the situation in the Middle East eased, edged lower on Friday. The benchmark 10-year German bond yield fell marginally to -0.221 per cent but for the week remains up 6 basis points, in a strong signal of investors' willingness to pull back from safe-haven government debt for riskier assets. The 10-year US Treasury yield slipped to 1.852 percent but it too remains up more than 6 basis points on the week. "With risk appetite showing little sign of abating following another resurgent 24 hours in markets, the next potential hurdle to jump is the first payrolls Friday of the new decade," said Deutsche Bank macro strategists.

Stocks march back to record highs as Middle East tensions ease

Chinese Commerce Ministry on Thursday announced that Vice Premier Liu He will travel to Washington on January 13 to sign the phase 1 deal with the US.

Liu will visit Washington on January 13-15, said Gao Feng, a spokesman at the commerce ministry.

In December, US President Donald Trump announced that partial new US-China trade agreement will be signed on January 15 at the White House.&nbsp;

"I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15," Trump had said in a tweet.

"The ceremony will take place at the White House. High-level representatives of China will be present," he had also said.

He had also said that he would travel to Beijing to begin talks on the next phase of the trade agreement.&nbsp;

The United States launched a trade war against Beijing a year and a half ago over allegations of unfair trade practices, such as theft of US intellectual property and subsidies that unfairly benefit Chinese state-owned companies.

The Phase 1 deal reached last month is expected to cut tariffs and boost Chinese purchases of US farm, energy and manufactured goods while addressing some disputes over intellectual property.

But no version of the text has been made public, and Chinese officials have yet to publicly commit to key points such as increasing imports of US goods and services by $200 billion over two years.

China will not increase its annual low-tariff import quotas for corn, wheat and rice to accommodate stepped-up purchases of farm goods from the United States, senior agriculture official Han Jun said on Tuesday, according to the local media group.

The move could make it harder for Beijing to meet import commitments in a Phase 1 trade deal due to be signed next week. &nbsp;Trump said last month the agreement would likely double China's $24 billion in pre-trade war purchases to $40-$50 billion annually.

When asked if China would have to reduce grain imports from other countries in order to meet its US commitments, Gao said that China will continue to improve the administration of tariff quotas for wheat, corn and soybeans in accordance with WTO commitments, and will make full use of quotas according to market conditions.

This is not inconsistent with expanding agricultural imports from the United States, said Gao.

(With inputs from Reuters)

Chinese Commerce Ministry on Thursday announced that Vice Premier Liu He will travel to Washington on January 13 to sign the phase 1 deal with the US. Liu will visit Washington on January 13-15, said Gao Feng, a spokesman at the commerce ministry.

Chinese Commerce Ministry on Thursday announced that Vice Premier Liu He will travel to Washington on January 13 to sign the phase 1 deal with the US. Liu will visit Washington on January 13-15, said Gao Feng, a spokesman at the commerce ministry. In December, US President Donald Trump announced that partial new US-China trade agreement will be signed on January 15 at the White House. "I will be signing our very large and comprehensive Phase One Trade Deal with China on January 15," Trump had said in a tweet. "The ceremony will take place at the White House. High-level representatives of China will be present," he had also said. He had also said that he would travel to Beijing to begin talks on the next phase of the trade agreement. The United States launched a trade war against Beijing a year and a half ago over allegations of unfair trade practices, such as theft of US intellectual property and subsidies that unfairly benefit Chinese state-owned companies. The Phase 1 deal reached last month is expected to cut tariffs and boost Chinese purchases of US farm, energy and manufactured goods while addressing some disputes over intellectual property. But no version of the text has been made public, and Chinese officials have yet to publicly commit to key points such as increasing imports of US goods and services by $200 billion over two years. China will not increase its annual low-tariff import quotas for corn, wheat and rice to accommodate stepped-up purchases of farm goods from the United States, senior agriculture official Han Jun said on Tuesday, according to the local media group. The move could make it harder for Beijing to meet import commitments in a Phase 1 trade deal due to be signed next week. Trump said last month the agreement would likely double China's $24 billion in pre-trade war purchases to $40-$50 billion annually. When asked if China would have to reduce grain imports from other countries in order to meet its US commitments, Gao said that China will continue to improve the administration of tariff quotas for wheat, corn and soybeans in accordance with WTO commitments, and will make full use of quotas according to market conditions. This is not inconsistent with expanding agricultural imports from the United States, said Gao. (With inputs from Reuters)

China's Vice Premier Liu to sign US trade deal next week in Washington

&nbsp;A broad gauge of <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Asian share </a>markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

But European shares were expected to open lower as investors take a breather from recent rallies.

In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent&nbsp;at 3,764, German DAX futures were down 0.22 per cent&nbsp;at 13,291.5 and FTSE futures were down 0.11&nbsp;per cent&nbsp;at 7,578.5.

MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent.

Chinese blue chips, which had started the day lower, were up 1.13&nbsp;per cent&nbsp;in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent&nbsp;and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares finished 0.25 per cent&nbsp;lower as investors continued to consolidate recent gains.

Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent&nbsp;in 2019 after dropping 12.8 per cent&nbsp;last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent&nbsp;and putting it on track for its strongest month since January.

Kay Van-Petersen, the global macro strategist at <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback.&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08 per cent&nbsp;higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.31per cent&nbsp;to $68.37 per barrel, while US&nbsp;<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> crude added 0.13 per cent&nbsp;to $61.80, reversing an earlier decline.

Oil's gains followed news of <a href="https://www.wionews.com/world/25-isis-terrorists-killed-in-us-airstrikes-in-iraq-175533">US&nbsp;airstrikes</a> in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes.

The precious metal on Monday rose 0.3 per cent&nbsp;to $1,515 per ounce on the spot market.

In the currency markets, the dollar was 0.27&nbsp;per cent&nbsp;lower against the yen at 109.11 and the euro was up 0.23&nbsp;per cent&nbsp;on the day at $1.1201.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14&nbsp;per cent&nbsp;to 96.786.

The yield on benchmark 10-year Treasury notes was at 1.877 per cent&nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent&nbsp;on Friday, while the two-year yield edged down to 1.5812 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. But European shares were expected to open lower as investors take a breather from recent rallies. In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent at 3,764, German DAX futures were down 0.22 per cent at 13,291.5 and FTSE futures were down 0.11 per cent at 7,578.5. MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent. Chinese blue chips, which had started the day lower, were up 1.13 per cent in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares finished 0.25 per cent lower as investors continued to consolidate recent gains. Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent in 2019 after dropping 12.8 per cent last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, the global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback. I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08 per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.31per cent to $68.37 per barrel, while US West Texas Intermediate crude added 0.13 per cent to $61.80, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes. The precious metal on Monday rose 0.3 per cent to $1,515 per ounce on the spot market. In the currency markets, the dollar was 0.27 per cent lower against the yen at 109.11 and the euro was up 0.23 per cent on the day at $1.1201. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14 per cent to 96.786. The yield on benchmark 10-year Treasury notes was at 1.877 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5812 per cent compared with a US close of 1.589 per cent.

Global Markets: Asian shares at 18-month highs; Nikkei finishes year up 18%

A broad gauge of <a href="https://www.wionews.com/business-economy/asian-shares-near-18-month-high-bask-in-trade-deal-afterglow-269696">Asian share</a> markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19.

Chinese blue chips, which had started the day lower, were up 1.24&nbsp;per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January.

Kay Van-Petersen, a global macro strategist at <a href="https://www.wionews.com/business-economy/asian-shares-climb-as-trump-says-us-china-trade-deal-near-264827">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08per cent higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17&nbsp;per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.18&nbsp;per cent to $68.28 per barrel, while US&nbsp;West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline.

Oil's gains followed news of US&nbsp;airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade.

The precious metal on Monday rose 0.33&nbsp;per cent to $1,515.40 per ounce on the spot market.

In the currency market, the dollar was 0.30&nbsp;per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2&nbsp;per cent &nbsp;to 96.736.

The yield on benchmark 10-year Treasury notes was at 1.8752 per cent &nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent &nbsp;on Friday, while the two-year yield edged down to 1.5832 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent .

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19. Chinese blue chips, which had started the day lower, were up 1.24 per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, a global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.18 per cent to $68.28 per barrel, while US West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade. The precious metal on Monday rose 0.33 per cent to $1,515.40 per ounce on the spot market. In the currency market, the dollar was 0.30 per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2 per cent to 96.736. The yield on benchmark 10-year Treasury notes was at 1.8752 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5832 per cent compared with a US close of 1.589 per cent .

Global Markets: China lifts Asian shares; oil up on drawdowns, Mideast tensions

US President Donald Trump said he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month.

"We will be having a signing ceremony, yes," Trump told reporters. "We will ultimately, yes, when we get together. And we'll be having a quicker signing because we want to get it done. The deal is done, it's just being translated right now."

United States Trade Representative Robert Lighthizer said on December&nbsp;13 that representatives from both countries would sign the Phase 1 trade deal agreement in the first week of January.

Speaking in Beijing, Chinese Foreign Ministry spokesman Geng Shuang said both countries were in close contact.

"Both sides' economic and trade teams are in close communication about detailed arrangements for the deal's signing and other follow-up work," Geng told a daily news briefing.

He did not elaborate.Beijing has not yet confirmed specific components of the deal that were released by US officials. A spokesman for China's Commerce Ministry said last week the details would be made public after the official signing.

US President Donald Trump said he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month.

US President Donald Trump said he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month. "We will be having a signing ceremony, yes," Trump told reporters. "We will ultimately, yes, when we get together. And we'll be having a quicker signing because we want to get it done. The deal is done, it's just being translated right now." United States Trade Representative Robert Lighthizer said on December 13 that representatives from both countries would sign the Phase 1 trade deal agreement in the first week of January. Speaking in Beijing, Chinese Foreign Ministry spokesman Geng Shuang said both countries were in close contact. "Both sides' economic and trade teams are in close communication about detailed arrangements for the deal's signing and other follow-up work," Geng told a daily news briefing. He did not elaborate.Beijing has not yet confirmed specific components of the deal that were released by US officials. A spokesman for China's Commerce Ministry said last week the details would be made public after the official signing.

We will be having a signing ceremony soon, says Trump on US-China trade deal

Asian shares edged lower and US&nbsp;stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a US China trade deal will boost exports and corporate earnings.

MSCI's broadest index of <a href="https://www.wionews.com/business-economy/asia-pacific-private-equity-india-and-china-lead-deals-but-fund-raising-slowing-203978">Asia-Pacific</a> shares outside Japan was down 0.14 per cent.

Blue-chip shares in China rose 0.37per cent&nbsp;after Premier <a href="https://www.wionews.com/business-economy/china-premier-li-keqiang-warns-us-against-trade-war-13404">Li Keqiang</a> said on Monday the government was considering more measures to lower corporate financing costs.

Australian shares rose 0.13 per cent, while South Korean shares fell 0.54 per cent. Japan's Nikkei nudged 0.04 per cent higher.

Sterling traded near a four-week low versus the euro and a three-week trough against the dollar on growing doubts over how Britain will navigate the transition period for its exit from the European Union.

Oil prices held steady before data on US&nbsp;crude inventories later on Tuesday, but there are signs that recent supply cuts may not last after Russia's energy minister said oil producers could ease output restrictions in March.

Wall Street's main indexes posted record closing highs on Monday after US&nbsp;President <a href="https://www.wionews.com/opinions/donald-trumps-attitude-towards-india-unpredictable-unreliable-238560">Donald Trump</a> said an initial US-China trade pact would be signed soon.

A de-escalation of a trade conflict between the world's two largest economies is a positive for companies that feed global supply chains, but some investors want to wait until next year to see how long the current thaw in Sino-US&nbsp;relations lasts.

"Risks to the outlook receded this year, which supported financial markets, but we cannot say the same thing about next year," said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

"No one can predict what will happen with US-China relations, and the US&nbsp;still has some tariffs on Chinese goods in place."

Trading is expected to be subdued as many financial markets will start closing from Tuesday for the Christmas holidays.

US&nbsp;stock futures rose 0.04 per cent after the S&amp;P 500 gained 0.09&nbsp;per cent and the Dow Jones Industrial Average rose 0.34&nbsp;per cent&nbsp;on Monday.

Shares of Boeing Co gave the Dow a boost after the planemaker ousted its chief executive officer over a prolonged crisis following two fatal crashes of its best-selling <a href="https://www.wionews.com/business-economy/financial-hit-from-737-max-will-not-slow-appetite-for-services-deals-boeing-ceo-dennis-muilenburg-246131">737 MAX jetliner</a>.

Equity investors got a rare double dose of positive news earlier this month when Washington and Beijing agreed a preliminary deal to avoid additional US&nbsp;tariffs on Chinese goods and a British general election gave the ruling Conservative Party a free hand to enact its Brexit agenda.

However, currency markets shows some investors remain circumspect, because new problems with trade friction and Brexit could easily emerge next year.

Against the euro, sterling was quoted at 85.66 pence, close to its lowest since November&nbsp;22. The pound traded at $1.2946, close to its lowest since December 2.

Sterling has given up all the gains it made immediately after the British general election on December&nbsp;12.

Spot gold rose 0.3&nbsp;per cent&nbsp;to $1,490.30 per ounce. Earlier in the day, prices hit their highest since November&nbsp;7, in another sign that some investors remain wary of risk.

In the onshore market, China's yuan reversed early losses to trade at 7.0115 per dollar.

China's government is considering broad-based and "targeted" cuts in banks' reserve requirement ratio to lower financing costs for small firms, the country's premier said on Monday, showing policymakers remain under pressure to counter an economic slowdown.

US&nbsp;crude ticked up 0.12 per cent&nbsp;to $60.61 a barrel, and Brent crude rose 0.24 per cent&nbsp;to $66.55 per barrel.

OPEC and other leading oil producers may consider easing oil output restrictions at their meeting in March, Russian Energy Minister Alexander Novak said in an interview aired on Monday.

Asian shares edged lower and US stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a US China trade deal will boost exports and corporate earnings.

Asian shares edged lower and US stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a US China trade deal will boost exports and corporate earnings. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.14 per cent. Blue-chip shares in China rose 0.37per cent after Premier Li Keqiang said on Monday the government was considering more measures to lower corporate financing costs. Australian shares rose 0.13 per cent, while South Korean shares fell 0.54 per cent. Japan's Nikkei nudged 0.04 per cent higher. Sterling traded near a four-week low versus the euro and a three-week trough against the dollar on growing doubts over how Britain will navigate the transition period for its exit from the European Union. Oil prices held steady before data on US crude inventories later on Tuesday, but there are signs that recent supply cuts may not last after Russia's energy minister said oil producers could ease output restrictions in March. Wall Street's main indexes posted record closing highs on Monday after US President Donald Trump said an initial US-China trade pact would be signed soon. A de-escalation of a trade conflict between the world's two largest economies is a positive for companies that feed global supply chains, but some investors want to wait until next year to see how long the current thaw in Sino-US relations lasts. "Risks to the outlook receded this year, which supported financial markets, but we cannot say the same thing about next year," said Hiroshi Miyazaki, senior economist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo. "No one can predict what will happen with US-China relations, and the US still has some tariffs on Chinese goods in place." Trading is expected to be subdued as many financial markets will start closing from Tuesday for the Christmas holidays. US stock futures rose 0.04 per cent after the S&P 500 gained 0.09 per cent and the Dow Jones Industrial Average rose 0.34 per cent on Monday. Shares of Boeing Co gave the Dow a boost after the planemaker ousted its chief executive officer over a prolonged crisis following two fatal crashes of its best-selling 737 MAX jetliner. Equity investors got a rare double dose of positive news earlier this month when Washington and Beijing agreed a preliminary deal to avoid additional US tariffs on Chinese goods and a British general election gave the ruling Conservative Party a free hand to enact its Brexit agenda. However, currency markets shows some investors remain circumspect, because new problems with trade friction and Brexit could easily emerge next year. Against the euro, sterling was quoted at 85.66 pence, close to its lowest since November 22. The pound traded at $1.2946, close to its lowest since December 2. Sterling has given up all the gains it made immediately after the British general election on December 12. Spot gold rose 0.3 per cent to $1,490.30 per ounce. Earlier in the day, prices hit their highest since November 7, in another sign that some investors remain wary of risk. In the onshore market, China's yuan reversed early losses to trade at 7.0115 per dollar. China's government is considering broad-based and "targeted" cuts in banks' reserve requirement ratio to lower financing costs for small firms, the country's premier said on Monday, showing policymakers remain under pressure to counter an economic slowdown. US crude ticked up 0.12 per cent to $60.61 a barrel, and Brent crude rose 0.24 per cent to $66.55 per barrel. OPEC and other leading oil producers may consider easing oil output restrictions at their meeting in March, Russian Energy Minister Alexander Novak said in an interview aired on Monday.

Asia stocks ease slightly as doubts about risk factors linger

<a href="https://www.wionews.com/world/well-deal-with-it-successfully-donald-trump-on-north-koreas-christmas-gift-threat-270065">US&nbsp;President Donald Trump</a> said on Tuesday&nbsp;he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month.

"We will be having a signing ceremony, yes," Trump told reporters. "We will ultimately, yes, when we get together. And we'll be having a quicker signing because we want to get it done. The deal is done, it's just being translated right now."

Watch:&nbsp;US&nbsp;blacklists China &amp; Pak, both languish in the blacklist

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-blacklists-china-pak-both-languish-in-the-blacklist-269482/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

United States Trade Representative Robert Lighthizer said on December&nbsp;13 that representatives from both countries would sign the Phase 1 trade deal agreement in the first week of January.

Beijing has not yet confirmed specific <a href="https://www.wionews.com/world/phase-one-trade-deal-with-china-would-be-signed-very-shortly-donald-trump-269576">components of the deal</a> that were released by US&nbsp;officials. A spokesman for China's Commerce Ministry said last week the details would be made public after the official signing.

''When we get together, we will do. But we'll have a quicker signing because we want to get it done. The deal is done. It's just being translated right now. Okay? Thank you", Trump told reporters.

US President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month.

US President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month. "We will be having a signing ceremony, yes," Trump told reporters. "We will ultimately, yes, when we get together. And we'll be having a quicker signing because we want to get it done. The deal is done, it's just being translated right now." Watch: US blacklists China & Pak, both languish in the blacklist United States Trade Representative Robert Lighthizer said on December 13 that representatives from both countries would sign the Phase 1 trade deal agreement in the first week of January. Beijing has not yet confirmed specific components of the deal that were released by US officials. A spokesman for China's Commerce Ministry said last week the details would be made public after the official signing. ''When we get together, we will do. But we'll have a quicker signing because we want to get it done. The deal is done. It's just being translated right now. Okay? Thank you", Trump told reporters.

Deal is done, will have signing ceremony soon: Trump on China trade deal

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