When <a href="https://www.wionews.com/world/donald-trump-attacks-robert-mueller-ahead-of-testimony-on-russia-probe-237817">US President Donald Trump</a> tweeted in May his intention to raise tariffs on Chinese goods, management at California-based NewAir Appliances knew they needed to do something or their business would be in trouble.&nbsp;

The importer of beer fridges, ice makers and other household devices all sourced from <a href="https://www.wionews.com/opinions/mass-protests-protect-hong-kongs-legal-autonomy-from-china-for-now-228567">China</a> had tackled 10 per cent tariffs imposed last year by seeking to cut costs and negotiating with big box and other retailers for better terms.

But the jump to 25 per cent tariffs presented a much bigger challenge.

The day after Trump's tweet, NewAir's four-member leadership team met for lunch and began to formulate a more radical plan. There was a "level of tension", said Andrew Stephenson, the company's vice president for marketing, but no sense of panic.

The result: an ambitious overhaul of its product offerings, with 50-60 new or revamped goods set to come on the market this year a move that allows the company to hit the reset button on pricing as their costs leap.

The product turnover is a huge increase for NewAir, which has a range of some 70 goods and usually introduces 10 or fewer new items each year.

Like NewAir, many importers of goods from China have had to make difficult business decisions and sharp changes in strategy as they reel from the impact of US tariffs on $250 billion of Chinese goods.

With consumers and retailers often unwilling to accept higher prices for the same products, oft-heard tactics range from accepting lower profit-margins to cost-cutting that may include lowering wages or laying off workers, to shifting production from China to other countries.

While the approach taken by NewAir and others in the sector requires significant investment, it underscores how the year-long US-China trade war is forcing some companies to adopt novel workarounds as they fight for long-term survival and bump up against the limitations of belt-tightening.

"Instead of cutting costs we're going to add some costs, but in the long run it will pay off," Stephenson said by telephone after a trip to China to meet suppliers.

Working closely with suppliers to develop products, he is also implementing measures like air-mailing samples to the United States instead of using cheaper maritime freight, aiming to slash up to a month of the process of getting goods approved.

"Anything we can do to expedite the process is what we're looking at doing," he said.

NewAir, a company with 50-plus employees, would likely spend "hundreds of thousands of dollars" on the project and was considering hiring a marketing manager, as Stephenson's focus shifts to dealing full-time with trade war strategy.

Up featuring

NewAir, whose products are sold under its brand as well as under licence with Magic Chef, Frigidaire and PepsiCo Inc, is still discussing ways to share the burden of the tariffs with Chinese suppliers and American retailers. It is also looking into sourcing some goods from India and Mexico.

But the cornerstone of its new strategy is the overhaul of its product line.

In addition to items it has not sold before, such as internet-enabled wine fridges and combination air fryer ovens, NewAir will retire some old products and give others that have been modified fresh SKUs, or stock-keeping units - unique product numbers that retailers use to track inventory. That will allow NewAir and its retailers to set new prices.

Jim Estill, CEO of Danby Appliances, a Canadian company that sources similar products from China and sells many in the United States, calls the strategy "up featuring".

"If you're already buying a minifridge for $129 and now it's $149. You're up in arms. But the psychology is completely different if you say: 'here's the new XYZ, it's $149' and the customer checks the market and sees everyone is charging $149 for the same thing, it's acceptable."

Danby expects to turn over 80 per cent of its product line of about 300 goods in 2019, compared to a normal rate of 30 per cent, he said, adding that improvements in technology had made this an opportune time for product revamps.

"If this happened 10 years ago, it would have been tough to say my white box is different. But now you can say I have a freezer that sends you an email when the power is out."

Danby, which makes annual revenue of about $400 million, estimates the cost of revamping its product line at around $4 million.

If the strategy works, it does in part shift some of the costs of tariffs designed to hurt China to the US consumer. But it is not risk-free.

"When you sell new products at significantly higher prices it will affect your demand somewhat because now you are asking people to upgrade to a better product at much higher prices. How many consumers would have such budgets?" said Jing Bing, an associate professor of marketing at the Cheung Kong Graduate School of Business in Beijing.

The point of pursuing a trade war "is to ask the American consumers to walk away from Chinese made products," he said, adding: "That's precisely the effect."

NewAir CEO Luke Peters said retailers and consumers will get better products and will not see "a huge 25 per cent increase" in prices.

"Our customers, who also have to be profitable, are going to see more value in the products that we're giving to them. So it's kind of forcing us to be more innovative," he said.

But whether or not importers like NewAir can find a balance between higher prices and demand remains to be seen.

"That's going to be the telltale for us, is what happens in about six to nine months," said Stephenson.

When US President Donald Trump tweeted in May his intention to raise tariffs on Chinese goods, management at California-based NewAir Appliances knew they needed to do something or their business would be in trouble.

When US President Donald Trump tweeted in May his intention to raise tariffs on Chinese goods, management at California-based NewAir Appliances knew they needed to do something or their business would be in trouble. The importer of beer fridges, ice makers and other household devices all sourced from China had tackled 10 per cent tariffs imposed last year by seeking to cut costs and negotiating with big box and other retailers for better terms. But the jump to 25 per cent tariffs presented a much bigger challenge. The day after Trump's tweet, NewAir's four-member leadership team met for lunch and began to formulate a more radical plan. There was a "level of tension", said Andrew Stephenson, the company's vice president for marketing, but no sense of panic. The result: an ambitious overhaul of its product offerings, with 50-60 new or revamped goods set to come on the market this year a move that allows the company to hit the reset button on pricing as their costs leap. The product turnover is a huge increase for NewAir, which has a range of some 70 goods and usually introduces 10 or fewer new items each year. Like NewAir, many importers of goods from China have had to make difficult business decisions and sharp changes in strategy as they reel from the impact of US tariffs on $250 billion of Chinese goods. With consumers and retailers often unwilling to accept higher prices for the same products, oft-heard tactics range from accepting lower profit-margins to cost-cutting that may include lowering wages or laying off workers, to shifting production from China to other countries. While the approach taken by NewAir and others in the sector requires significant investment, it underscores how the year-long US-China trade war is forcing some companies to adopt novel workarounds as they fight for long-term survival and bump up against the limitations of belt-tightening. "Instead of cutting costs we're going to add some costs, but in the long run it will pay off," Stephenson said by telephone after a trip to China to meet suppliers. Working closely with suppliers to develop products, he is also implementing measures like air-mailing samples to the United States instead of using cheaper maritime freight, aiming to slash up to a month of the process of getting goods approved. "Anything we can do to expedite the process is what we're looking at doing," he said. NewAir, a company with 50-plus employees, would likely spend "hundreds of thousands of dollars" on the project and was considering hiring a marketing manager, as Stephenson's focus shifts to dealing full-time with trade war strategy. Up featuring NewAir, whose products are sold under its brand as well as under licence with Magic Chef, Frigidaire and PepsiCo Inc, is still discussing ways to share the burden of the tariffs with Chinese suppliers and American retailers. It is also looking into sourcing some goods from India and Mexico. But the cornerstone of its new strategy is the overhaul of its product line. In addition to items it has not sold before, such as internet-enabled wine fridges and combination air fryer ovens, NewAir will retire some old products and give others that have been modified fresh SKUs, or stock-keeping units - unique product numbers that retailers use to track inventory. That will allow NewAir and its retailers to set new prices. Jim Estill, CEO of Danby Appliances, a Canadian company that sources similar products from China and sells many in the United States, calls the strategy "up featuring". "If you're already buying a minifridge for $129 and now it's $149. You're up in arms. But the psychology is completely different if you say: 'here's the new XYZ, it's $149' and the customer checks the market and sees everyone is charging $149 for the same thing, it's acceptable." Danby expects to turn over 80 per cent of its product line of about 300 goods in 2019, compared to a normal rate of 30 per cent, he said, adding that improvements in technology had made this an opportune time for product revamps. "If this happened 10 years ago, it would have been tough to say my white box is different. But now you can say I have a freezer that sends you an email when the power is out." Danby, which makes annual revenue of about $400 million, estimates the cost of revamping its product line at around $4 million. If the strategy works, it does in part shift some of the costs of tariffs designed to hurt China to the US consumer. But it is not risk-free. "When you sell new products at significantly higher prices it will affect your demand somewhat because now you are asking people to upgrade to a better product at much higher prices. How many consumers would have such budgets?" said Jing Bing, an associate professor of marketing at the Cheung Kong Graduate School of Business in Beijing. The point of pursuing a trade war "is to ask the American consumers to walk away from Chinese made products," he said, adding: "That's precisely the effect." NewAir CEO Luke Peters said retailers and consumers will get better products and will not see "a huge 25 per cent increase" in prices. "Our customers, who also have to be profitable, are going to see more value in the products that we're giving to them. So it's kind of forcing us to be more innovative," he said. But whether or not importers like NewAir can find a balance between higher prices and demand remains to be seen. "That's going to be the telltale for us, is what happens in about six to nine months," said Stephenson.

To survive trade war, some US importers embark on major revamps of product lines

<a href="https://www.wionews.com/opinions/russia-in-africa-can-it-offer-an-alternative-to-the-us-and-china-223760">US and Chinese officials</a> will hold two days of talks in Shanghai next week to try to make progress on their year-long trade dispute, US Treasury Secretary Steven Mnuchin said Wednesday.

It will be the first face-to-face meeting since talks collapsed in May after <a href="https://www.wionews.com/world/donald-trump-attacks-robert-mueller-ahead-of-testimony-on-russia-probe-237817">President Donald Trump</a> accused Beijing of reneging on its commitments.

Mnuchin said he and US Trade Representative Robert Lighthizer will lead the US delegation.

Mnuchin said on CNBC he hopes to make progress but added there are "a lot of issues" pending so he expects another round of talks would follow in Washington.

Senior officials have spoken by phone twice in the last two weeks in the bid to jump-start the negotiations.

At a meeting in Japan last month, US President Donald Trump and his Chinese counterpart Xi Jinping agreed to cease further hostilities in the year-long trade war while the two sides worked to revive negotiations.

The countries have imposed tariffs on $360 billion in two-way trade and Trump has threatened even more punishing duties on Chinese goods.

Mnuchin implied that the national security concerns that have led Washington to impose tough sanctions on Chinese telecom giant Huawei are on a separate track from the trade talks.

But he downplayed concerns about links between Google and Beijing.

"We're not aware of Google working with the Chinese government in a way that raises concerns," Mnuchin said.

"They assured us that there is very, very limited work. The only work they're doing is some minimal open source work."

Trump last week said he wants his administration to "take a look" into whether Google has been working with the Chinese government an allegation swiftly denied by the US internet giant.

US and Chinese officials will hold two days of talks in Shanghai next week to try to make progress on their year-long trade dispute, US Treasury Secretary Steven Mnuchin said Wednesday.

US and Chinese officials will hold two days of talks in Shanghai next week to try to make progress on their year-long trade dispute, US Treasury Secretary Steven Mnuchin said Wednesday. It will be the first face-to-face meeting since talks collapsed in May after President Donald Trump accused Beijing of reneging on its commitments. Mnuchin said he and US Trade Representative Robert Lighthizer will lead the US delegation. Mnuchin said on CNBC he hopes to make progress but added there are "a lot of issues" pending so he expects another round of talks would follow in Washington. Senior officials have spoken by phone twice in the last two weeks in the bid to jump-start the negotiations. At a meeting in Japan last month, US President Donald Trump and his Chinese counterpart Xi Jinping agreed to cease further hostilities in the year-long trade war while the two sides worked to revive negotiations. The countries have imposed tariffs on $360 billion in two-way trade and Trump has threatened even more punishing duties on Chinese goods. Mnuchin implied that the national security concerns that have led Washington to impose tough sanctions on Chinese telecom giant Huawei are on a separate track from the trade talks. But he downplayed concerns about links between Google and Beijing. "We're not aware of Google working with the Chinese government in a way that raises concerns," Mnuchin said. "They assured us that there is very, very limited work. The only work they're doing is some minimal open source work." Trump last week said he wants his administration to "take a look" into whether Google has been working with the Chinese government an allegation swiftly denied by the US internet giant.

US, China to hold two days of talks in Shanghai next week: Steven Mnuchin

How China's PLA maintains internal equilibrium to control external threat

Eleven people have died and 42 are missing after heavy rains triggered a landslide in China's southwestern <a href="https://www.wionews.com/world/china-waterfall-skyscraper-hit-by-torrent-of-ridicule-155088">Guizhou province</a>, the government said Wednesday.

Rescuers have freed 11 survivors after a mudslide buried 21 houses in a village in Shuicheng county Tuesday night, the Ministry of Emergency Management said in a statement on the Twitter-like Weibo platform.

Video of the landslide aired by state broadcaster CGTN showed the side of a collapsed hill covered in thick mud and excavators digging through the debris.

Rescue workers in helmets with torches were seen struggling through the thick mud as ambulances waited nearby.

About 560 rescuers were still combing through the rubble searching for survivors, the statement said.

<a href="https://www.wionews.com/world/xi-jinping-first-chinese-leader-to-visit-north-korea-in-14-years-to-meet-kim-ahead-of-trump-talks-228866">Chinese president Xi Jinping</a> has called for a "careful investigation" into flood and disaster management to reduce further damage, the ministry said.

Landslides are a frequent danger in rural and mountainous parts of China, particularly after heavy rain, and the country has suffered heavy flooding in 2019 so far.

A separate landslip at a construction site in a village in Hezhang County in Guizhou on Tuesday killed one person and six others are missing, the county government said.

About 2.2 million people in Guizhou have been affected by floods and heavy winds in the first half of the year, and natural disasters have shaved off 3.1 billion yuan ($450 million) off the local economy this year, China's official Xinhua news agency reported.

Eleven people have died and 42 are missing after heavy rains triggered a landslide in China's southwestern Guizhou province, the government said Wednesday. Rescuers have freed 11 survivors after a mudslide buried 21 houses in a village in Shuicheng county Tuesday night, the Ministry of Emergency Management said in a statement on the Twitter-like Weibo platform.

Eleven people have died and 42 are missing after heavy rains triggered a landslide in China's southwestern Guizhou province, the government said Wednesday. Rescuers have freed 11 survivors after a mudslide buried 21 houses in a village in Shuicheng county Tuesday night, the Ministry of Emergency Management said in a statement on the Twitter-like Weibo platform. Video of the landslide aired by state broadcaster CGTN showed the side of a collapsed hill covered in thick mud and excavators digging through the debris. Rescue workers in helmets with torches were seen struggling through the thick mud as ambulances waited nearby. About 560 rescuers were still combing through the rubble searching for survivors, the statement said. Chinese president Xi Jinping has called for a "careful investigation" into flood and disaster management to reduce further damage, the ministry said. Landslides are a frequent danger in rural and mountainous parts of China, particularly after heavy rain, and the country has suffered heavy flooding in 2019 so far. A separate landslip at a construction site in a village in Hezhang County in Guizhou on Tuesday killed one person and six others are missing, the county government said. About 2.2 million people in Guizhou have been affected by floods and heavy winds in the first half of the year, and natural disasters have shaved off 3.1 billion yuan ($450 million) off the local economy this year, China's official Xinhua news agency reported.

11 dead, 42 missing in southwestern China landslide

Global trade tensions, continued uncertainty and rising prospects for a <a href="https://www.wionews.com/world/uk-lawmakers-vote-in-bid-to-frustrate-no-deal-brexit-236976">no-deal Brexit</a> are sapping the strength of the world economy, which faces a "precarious" 2020, the <a href="https://www.wionews.com/world/christine-lagarde-resigns-as-international-monetary-fund-chief-starting-race-for-her-successor-236536">International Monetary Fund</a> warned on Tuesday.

Trade conflicts are undercutting investment and weakening manufacturing, and the IMF urged countries to avoid using tariffs to resolve their differences.

In the quarterly update of its World Economic Outlook, the IMF trimmed the global forecast issued in April by 0.1 percentage point this year and next, with growth expected to hit 3.2 per cent in 2019 and 3.5 per cent in 2020.

But the report sounded the alarm, saying things could easily go wrong.

"Global growth is sluggish and precarious, but it does not have to be this way, because some of this is self-inflicted," IMF chief economist Gita Gopinath told reporters.

"Dynamism in the global economy is being weighed down by prolonged policy uncertainty as trade tensions remain heightened despite the recent US-China trade truce... and the prospects of a no-deal Brexit have increased," she said at a briefing in Santiago, Chile.

Gopinath warned that the recovery is seen next year "is precarious" because "close to 70 per cent of the increase relies on an improvement in the growth performance in stressed emerging market and developing economies and is therefore subject to high uncertainty."

However, the United States, which is at the centre of most of the trade tensions, saw one of the rare upgrades in the report, as it got a short-term boost from strong economic growth in the early part of the year.&nbsp;

The IMF raised the US GDP forecast by three-tenths of a percentage point to 2.6 per cent for 2019, but weakening demand, in part due to the trade conflicts and tariffs, points to "slowing momentum over the rest of the year."&nbsp;

US economic growth is expected to slow to 1.9 per cent in 2020.

China, which is the main target of US trade actions, was already experiencing a slowdown. But "the negative effects of escalating tariffs and weakening external demand have added pressure," the report said. A sudden slowdown in China is a key risk to the world economy.

The report downgraded Chinese growth by a tenth of a point this year and next, to 6.2 per cent and 6.0 per cent.

Avoid policy missteps

The IMF cautioned that there is an abundance of "potential triggers" for the situation to turn negative quickly, including the possibility of more US tariffs on China or on European autos, as well as a no-deal Brexit and high debt levels in many countries.

"While the tensions abated in June, durable agreements to resolve differences remain subject to possibly protracted and difficult negotiations," the report said.

Gopinath repeated the IMF calculation showing that the combined effect of tariffs imposed last year and potential tariffs threatened in May between the United States and China could reduce global GDP in 2020 by 0.5 per cent.

The latest forecast was once again full of downgrades, with small downward revisions for Germany and Japan, but much larger cuts for Brazil, Mexico, Russia, India and South Africa countries that were the engine for global growth in the wake of the 2008 financial crisis.

The IMF again stressed that resolving uncertainty remains the most pressing issue for the global economy and said governments should avoid "policy missteps" that could have "a severely debilitating effect on sentiment, growth and job creation."

And "countries should not use tariffs to target bilateral trade balances," the report said while recognizing that "trade disputes may be symptoms of deeper frustration with gaps in the rules-based multilateral trading system."

President Donald Trump and Chinese leader Xi Jinping in June agreed to a truce in their trade hostilities.&nbsp;

US Trade Representative Robert Lighthizer is set to lead a delegation to China on Monday for the first face-to-face meeting since talks collapsed in May, according to media reports.

Commerce Secretary Wilbur Ross said the "overriding objective" is to get a good deal, which "is much more important than exact timing."

Global trade tensions, continued uncertainty and rising prospects for a no-deal Brexit are sapping the strength of the world economy, which faces a "precarious" 2020, the International Monetary Fund warned on Tuesday.

Global trade tensions, continued uncertainty and rising prospects for a no-deal Brexit are sapping the strength of the world economy, which faces a "precarious" 2020, the International Monetary Fund warned on Tuesday. Trade conflicts are undercutting investment and weakening manufacturing, and the IMF urged countries to avoid using tariffs to resolve their differences. In the quarterly update of its World Economic Outlook, the IMF trimmed the global forecast issued in April by 0.1 percentage point this year and next, with growth expected to hit 3.2 per cent in 2019 and 3.5 per cent in 2020. But the report sounded the alarm, saying things could easily go wrong. "Global growth is sluggish and precarious, but it does not have to be this way, because some of this is self-inflicted," IMF chief economist Gita Gopinath told reporters. "Dynamism in the global economy is being weighed down by prolonged policy uncertainty as trade tensions remain heightened despite the recent US-China trade truce... and the prospects of a no-deal Brexit have increased," she said at a briefing in Santiago, Chile. Gopinath warned that the recovery is seen next year "is precarious" because "close to 70 per cent of the increase relies on an improvement in the growth performance in stressed emerging market and developing economies and is therefore subject to high uncertainty." However, the United States, which is at the centre of most of the trade tensions, saw one of the rare upgrades in the report, as it got a short-term boost from strong economic growth in the early part of the year. The IMF raised the US GDP forecast by three-tenths of a percentage point to 2.6 per cent for 2019, but weakening demand, in part due to the trade conflicts and tariffs, points to "slowing momentum over the rest of the year." US economic growth is expected to slow to 1.9 per cent in 2020. China, which is the main target of US trade actions, was already experiencing a slowdown. But "the negative effects of escalating tariffs and weakening external demand have added pressure," the report said. A sudden slowdown in China is a key risk to the world economy. The report downgraded Chinese growth by a tenth of a point this year and next, to 6.2 per cent and 6.0 per cent. Avoid policy missteps The IMF cautioned that there is an abundance of "potential triggers" for the situation to turn negative quickly, including the possibility of more US tariffs on China or on European autos, as well as a no-deal Brexit and high debt levels in many countries. "While the tensions abated in June, durable agreements to resolve differences remain subject to possibly protracted and difficult negotiations," the report said. Gopinath repeated the IMF calculation showing that the combined effect of tariffs imposed last year and potential tariffs threatened in May between the United States and China could reduce global GDP in 2020 by 0.5 per cent. The latest forecast was once again full of downgrades, with small downward revisions for Germany and Japan, but much larger cuts for Brazil, Mexico, Russia, India and South Africa countries that were the engine for global growth in the wake of the 2008 financial crisis. The IMF again stressed that resolving uncertainty remains the most pressing issue for the global economy and said governments should avoid "policy missteps" that could have "a severely debilitating effect on sentiment, growth and job creation." And "countries should not use tariffs to target bilateral trade balances," the report said while recognizing that "trade disputes may be symptoms of deeper frustration with gaps in the rules-based multilateral trading system." President Donald Trump and Chinese leader Xi Jinping in June agreed to a truce in their trade hostilities. US Trade Representative Robert Lighthizer is set to lead a delegation to China on Monday for the first face-to-face meeting since talks collapsed in May, according to media reports. Commerce Secretary Wilbur Ross said the "overriding objective" is to get a good deal, which "is much more important than exact timing."

International Monetary Fund downgrades world growth, warns of 'precarious' 2020

<a href="https://www.wionews.com/world/pakistans-next-double-game-marriage-with-china-affair-with-us-237219">China</a> will be able to place armed forces at a <a href="https://www.wionews.com/world/three-chinese-warships-dock-in-cambodia-to-boost-ties-military-cooperation-189207">Cambodian naval base</a> under a secret agreement the two nations have reached, the Wall Street Journal reported on Sunday, although Cambodian officials denied such a deal had been struck.

The agreement, reached this spring but not made public, gives China exclusive access to part of Cambodia's Ream Naval Base on the Gulf of Thailand, the Journal reported, citing US and allied officials familiar with the matter.

Such an arrangement would give China an enhanced ability to assert contested territorial claims and economic interests in the South China Sea, challenging US allies in Southeast Asia. Chinese and <a href="https://www.wionews.com/world/eighteen-dead-24-injured-in-cambodia-building-collapse-229696">Cambodian officials</a> denied such an agreement existed, according to the Journal.

"This is the worst-ever made-up news against Cambodia," Cambodian Prime Minister Hun Sen told the pro-government news site Fresh News on Monday.

"No such thing could happen because hosting foreign military bases is against the Cambodian constitution," he said.

Cambodian defence ministry spokesman Chhum Socheat told Reuters the report was "made up and baseless".

China, Hun Sen's strongest regional ally, has poured billions of dollars in development assistance and loans into Cambodia through bilateral frameworks and China's Belt and Road initiative.

The initiative, unveiled by Chinese President Xi Jinping in 2013, aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.

It has attracted a flood of Chinese commercial ventures in Cambodia, including casinos and special economic zones.

The US&nbsp;Defence Department suggested earlier this month China may be attempting to gain a military foothold in Cambodia in a letter to Cambodia asking why the nation had turned down an offer to repair a naval base.

The State Department urged Cambodia in a statement to reject such an arrangement, saying the nation had a "constitutional commitment to its people to pursue an independent foreign policy."

"We are concerned that any steps by the Cambodian government to invite a foreign military presence in Cambodia would threaten the coherence and centrality of the Association of Southeast Asian Nations (ASEAN) in coordinating regional developments, and disturb peace and stability in Southeast Asia," the statement said.

Cambodia denied reports last November that Beijing had been lobbying the Southeast Asian country since 2017 for a naval base that could host frigates, destroyers and other vessels of China's People's Liberation Army Navy.

China will be able to place armed forces at a Cambodian naval base under a secret agreement the two nations have reached, the Wall Street Journal reported on Sunday, although Cambodian officials denied such a deal had been struck.

China will be able to place armed forces at a Cambodian naval base under a secret agreement the two nations have reached, the Wall Street Journal reported on Sunday, although Cambodian officials denied such a deal had been struck. The agreement, reached this spring but not made public, gives China exclusive access to part of Cambodia's Ream Naval Base on the Gulf of Thailand, the Journal reported, citing US and allied officials familiar with the matter. Such an arrangement would give China an enhanced ability to assert contested territorial claims and economic interests in the South China Sea, challenging US allies in Southeast Asia. Chinese and Cambodian officials denied such an agreement existed, according to the Journal. "This is the worst-ever made-up news against Cambodia," Cambodian Prime Minister Hun Sen told the pro-government news site Fresh News on Monday. "No such thing could happen because hosting foreign military bases is against the Cambodian constitution," he said. Cambodian defence ministry spokesman Chhum Socheat told Reuters the report was "made up and baseless". China, Hun Sen's strongest regional ally, has poured billions of dollars in development assistance and loans into Cambodia through bilateral frameworks and China's Belt and Road initiative. The initiative, unveiled by Chinese President Xi Jinping in 2013, aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa. It has attracted a flood of Chinese commercial ventures in Cambodia, including casinos and special economic zones. The US Defence Department suggested earlier this month China may be attempting to gain a military foothold in Cambodia in a letter to Cambodia asking why the nation had turned down an offer to repair a naval base. The State Department urged Cambodia in a statement to reject such an arrangement, saying the nation had a "constitutional commitment to its people to pursue an independent foreign policy." "We are concerned that any steps by the Cambodian government to invite a foreign military presence in Cambodia would threaten the coherence and centrality of the Association of Southeast Asian Nations (ASEAN) in coordinating regional developments, and disturb peace and stability in Southeast Asia," the statement said. Cambodia denied reports last November that Beijing had been lobbying the Southeast Asian country since 2017 for a naval base that could host frigates, destroyers and other vessels of China's People's Liberation Army Navy.

Cambodia denies deal to allow armed Chinese forces at its naval base

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut.

All 25 components on the Shanghai Stock Exchange's Sci-Tech Innovation Board, or STAR Market, were driven sharply higher in a hearty initial endorsement of China's plan to use the board to help fund fast-growing tech firms and discourage them listing abroad.

Anji Technology, a solar energy battery manufacturer, closed morning trade up 415.44 per cent at 202 yuan after earlier soaring as high as 520 per cent.

The board's biggest component, China Railway Signal &amp; Communication, rose 125.64 per cent to 13.20 yuan on market-leading turnover of 7.6 billion yuan ($1.1 billion).

The introduction of the board, for which listing and trading rules have been dramatically eased, represents one of China's most significant financial market reforms yet and a potential weapon in its growing tech rivalry with the United States.

The tech board is yet to draw any household names.

But China hopes it will eventually include listings from among the country's rich stable of tech "unicorns" start-ups valued at a minimum $1 billion which include Alibaba-linked mobile-payments pioneer Ant Financial, ride-sharing giant Didi Chuxing, and online-services platform Meituan-Dianping.

China's government envisions the board being mentioned in the same breath someday as the tech-heavy Nasdaq, encouraging firms to list at home after the likes of Alibaba and Baidu chose Wall Street.

That will take time the Nasdaq has more than 3,000 companies listed and is one of the world's biggest exchanges.

"I think the science and technology board will develop into a major and important sector in China's capital markets, but it will take a long time, maybe 10 years, 20 years, or even longer," said Jiang Liangqing, a fund manager at Ruisen Capital Management.

Leap of faith

It is a leap of faith for China's volatility-averse authorities, as its stocks have been given relatively free rein.

For the first time, Chinese companies can list without a track record of past profits or restrictions on IPO pricing.

There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed.

China's two main exchanges in Shanghai and Shenzhen are subject to a 10 per cent band to contain volatility.

With attention on the new exchange, those markets languished Monday. Shanghai's main index was 0.57 per cent lower at midday while Shenzhen's was down 0.87 per cent.&nbsp;

The tech board was announced in November by President Xi Jinping as a battle with the United States for technological supremacy heated up.

Xi has called on China's tech leaders to become global champions, while the US has fought back in part by taking steps to clip the wings of Chinese telecom giant Huawei.

When big tech companies list overseas, the government in Beijing loses influence over their fundraising and Chinese investors cannot share in those companies' success due to restrictions on purchasing overseas-listed shares.

China realised it needed to loosen up.

"If China didn’t launch this new tech board now, it would miss the chance to transform its economic development into this 'new economy' mode," said Yang Delong, chief economist at First Seafront Fund.

But there are concerns that the new board could siphon liquidity from China's main markets, already pressured by slowing economic growth and the US trade war.

As a result, analysts believe regulators will take a measured pace in growing the tech board.

"The (main) markets are in a downturn now and if giant companies list on the tech board initially, market capital will be diverted. The market cannot bear that," said Yang.

"The new board won't drain too much from the main boards."

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut.

Shares on Shanghai's new Nasdaq-style technology board soared Monday, with one firm rocketing more than 500 per cent, as investors rushed to grab a piece of China's latest market liberalisation in a frenzied debut. All 25 components on the Shanghai Stock Exchange's Sci-Tech Innovation Board, or STAR Market, were driven sharply higher in a hearty initial endorsement of China's plan to use the board to help fund fast-growing tech firms and discourage them listing abroad. Anji Technology, a solar energy battery manufacturer, closed morning trade up 415.44 per cent at 202 yuan after earlier soaring as high as 520 per cent. The board's biggest component, China Railway Signal & Communication, rose 125.64 per cent to 13.20 yuan on market-leading turnover of 7.6 billion yuan ($1.1 billion). The introduction of the board, for which listing and trading rules have been dramatically eased, represents one of China's most significant financial market reforms yet and a potential weapon in its growing tech rivalry with the United States. The tech board is yet to draw any household names. But China hopes it will eventually include listings from among the country's rich stable of tech "unicorns" start-ups valued at a minimum $1 billion which include Alibaba-linked mobile-payments pioneer Ant Financial, ride-sharing giant Didi Chuxing, and online-services platform Meituan-Dianping. China's government envisions the board being mentioned in the same breath someday as the tech-heavy Nasdaq, encouraging firms to list at home after the likes of Alibaba and Baidu chose Wall Street. That will take time the Nasdaq has more than 3,000 companies listed and is one of the world's biggest exchanges. "I think the science and technology board will develop into a major and important sector in China's capital markets, but it will take a long time, maybe 10 years, 20 years, or even longer," said Jiang Liangqing, a fund manager at Ruisen Capital Management. Leap of faith It is a leap of faith for China's volatility-averse authorities, as its stocks have been given relatively free rein. For the first time, Chinese companies can list without a track record of past profits or restrictions on IPO pricing. There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed. China's two main exchanges in Shanghai and Shenzhen are subject to a 10 per cent band to contain volatility. With attention on the new exchange, those markets languished Monday. Shanghai's main index was 0.57 per cent lower at midday while Shenzhen's was down 0.87 per cent. The tech board was announced in November by President Xi Jinping as a battle with the United States for technological supremacy heated up. Xi has called on China's tech leaders to become global champions, while the US has fought back in part by taking steps to clip the wings of Chinese telecom giant Huawei. When big tech companies list overseas, the government in Beijing loses influence over their fundraising and Chinese investors cannot share in those companies' success due to restrictions on purchasing overseas-listed shares. China realised it needed to loosen up. "If China didn’t launch this new tech board now, it would miss the chance to transform its economic development into this 'new economy' mode," said Yang Delong, chief economist at First Seafront Fund. But there are concerns that the new board could siphon liquidity from China's main markets, already pressured by slowing economic growth and the US trade war. As a result, analysts believe regulators will take a measured pace in growing the tech board. "The (main) markets are in a downturn now and if giant companies list on the tech board initially, market capital will be diverted. The market cannot bear that," said Yang. "The new board won't drain too much from the main boards."

Shares blast off as 'China's Nasdaq' debuts

<a href="https://www.wionews.com/world/protesters-in-hong-kong-reject-carrie-lams-assertion-extradition-bill-dead-threaten-mass-rallies-234227">Hong Kong's extradition bill</a> demonstrations have mutated into a much bigger and more complex animal, ripping open old wounds and expanding a political fight as the city battens down for a summer of protests.

The demonstrations pop up almost daily, often with little notice, as activists spread the word of their cause with handwritten notes on so-called Lennon Walls across the territory and through Telegram and other messaging apps.

What started as an angry response to a now-suspended extradition bill now includes demands for greater democracy, the resignation of Hong Kong's chief executive, <a href="https://www.wionews.com/world/hong-kong-leader-condemns-rioters-after-violent-mall-clash-236131">Carrie Lam</a>, and even keeping mainland tourists out of Hong Kong.

"I'm afraid there will be more confrontation further down the road," said Labour Party lawmaker Fernando Cheung, who has tried to mediate between activists and police.

"The protests will continue," he added. "I would expect sizeable protests on and off continuously throughout the summer."

On Wednesday, organisers of a "silver-haired" march said 9,000 mostly elderly people, some in wheelchairs, took to the streets in support of younger protesters. Police put the number at 1,500 at its peak.

"The whole turmoil is caused by the missteps of government," said Margaret Yu, 59, a retired accountant. "As an elderly person, at least, I have to stand out and voice out how unjust our government is."

Wednesday's rally was the latest in a series that have rocked the Asian financial centre for more than two months, plunging the city into turmoil and posing the greatest popular challenge to Chinese leader Xi Jinping since he came to power in 2012.

Lam has said the extradition bill, which would allow people to be sent to mainland China for trial, is "dead." But opponents say nothing short of officially withdrawing it will do.

They fear the bill would leave Hong Kong people at the mercy of Chinese courts, where human rights are not guaranteed and have voiced concerns over the city's much-cherished rule of law.

In addition to Lam's ouster, protesters are demanding the word "riot" be withdrawn from the government's description of demonstrations, the unconditional release of those arrested and an independent investigation into complaints of excessive force by police.

Pipeline of protests

The next big protest is scheduled for Sunday, with demonstrators marching from Victoria Park near the bustling shopping district of Causeway Bay to the Court of Final Appeal in Central.

Other protests are planned over coming weekends in areas including Mong Kok, a gritty working-class district across the harbour from the financial centre, as well as in Tseung Kwan O and Sham Shui Po, one of Hong Kong's poorest areas.

"Protesting in locales such as Mong Kok ... only adds to the threat of violence, given the population density and the presence of triad societies," said Steve Vickers, a risk consultant and a former commander of the Royal Hong Kong Police Criminal Intelligence Bureau.

Triad gangs, he said, "may act as agitators for either side, or simply take actions to protect their own interests."

Under the terms of the handover from Britain in 1997, Hong Kong was allowed to retain extensive freedoms not enjoyed on the mainland under a "one country, two systems" formula, including an independent judiciary and right to protest.

But for many Hong Kong residents, the extradition bill is the latest step in a relentless march toward mainland control.

Deep-seated anger with the government has seen scores of smaller groups protest in the streets and sparked grassroots initiatives such as crowdfunding drives and newspaper ad campaigns.

Filling the streets

Millions have taken to the streets since June in Hong Kong's largest and most violent protests in decades, with police firing rubber bullets and tear gas to disperse activists, and protesters storming and ransacking the Legislative Council.

The protesters have adopted a "be water" strategy, inspired by a maxim of the city's home-grown martial arts legend, Bruce Lee, that encourages them to be flexible or formless.

Some activists say it's a very different approach from that of the democracy demonstrations in 2014, when protesters occupied major roads in the city for 79 days.

"We shall go on to the end, we shall fight in the streets, we shall fight in all districts of Hong Kong, we shall bring the fight from local arenas to international fronts, whatever the costs may be. We shall never surrender," the Students' Unions of Higher Institutions in Hong Kong said in a statement.

The movement's fluidity makes it difficult to police, taking a toll on officers who have fought pitched battles with protesters and leading to a crisis of confidence on the force.

The protests have at times paralysed parts of the financial district, shut government offices and disrupted business operations across the city.

Hong Kong retailers warned that July and August sales could drop by double digits from a year earlier because of the unrest, while tourism numbers and hotel occupancy rates are slumping.

Activists have seized on support for the protests to bolster the democratic opposition's prospects in the November elections, with the hope it can recapture its veto bloc from pro-establishment rivals.

"There are political forces that would like to maintain enthusiasm among protesters. This is the driving force for some people to mobilise and motivate protesters," said veteran pollster Robert Chung.

Lawmaker Regina Ip, in a letter to the South China Morning Post on Monday, said the protests were likely to continue in all 18 districts until the polls in late November.

Others are digging in for a longer stretch.

"What we're experiencing is an infinity war," said Joshua Wong, who was one of the leaders of the 2014 pro-democracy protests. "I am still optimistic."

Hong Kong's extradition bill demonstrations have mutated into a much bigger and more complex animal, ripping open old wounds and expanding a political fight as the city battens down for a summer of protests.

Hong Kong's extradition bill demonstrations have mutated into a much bigger and more complex animal, ripping open old wounds and expanding a political fight as the city battens down for a summer of protests. The demonstrations pop up almost daily, often with little notice, as activists spread the word of their cause with handwritten notes on so-called Lennon Walls across the territory and through Telegram and other messaging apps. What started as an angry response to a now-suspended extradition bill now includes demands for greater democracy, the resignation of Hong Kong's chief executive, Carrie Lam, and even keeping mainland tourists out of Hong Kong. "I'm afraid there will be more confrontation further down the road," said Labour Party lawmaker Fernando Cheung, who has tried to mediate between activists and police. "The protests will continue," he added. "I would expect sizeable protests on and off continuously throughout the summer." On Wednesday, organisers of a "silver-haired" march said 9,000 mostly elderly people, some in wheelchairs, took to the streets in support of younger protesters. Police put the number at 1,500 at its peak. "The whole turmoil is caused by the missteps of government," said Margaret Yu, 59, a retired accountant. "As an elderly person, at least, I have to stand out and voice out how unjust our government is." Wednesday's rally was the latest in a series that have rocked the Asian financial centre for more than two months, plunging the city into turmoil and posing the greatest popular challenge to Chinese leader Xi Jinping since he came to power in 2012. Lam has said the extradition bill, which would allow people to be sent to mainland China for trial, is "dead." But opponents say nothing short of officially withdrawing it will do. They fear the bill would leave Hong Kong people at the mercy of Chinese courts, where human rights are not guaranteed and have voiced concerns over the city's much-cherished rule of law. In addition to Lam's ouster, protesters are demanding the word "riot" be withdrawn from the government's description of demonstrations, the unconditional release of those arrested and an independent investigation into complaints of excessive force by police. Pipeline of protests The next big protest is scheduled for Sunday, with demonstrators marching from Victoria Park near the bustling shopping district of Causeway Bay to the Court of Final Appeal in Central. Other protests are planned over coming weekends in areas including Mong Kok, a gritty working-class district across the harbour from the financial centre, as well as in Tseung Kwan O and Sham Shui Po, one of Hong Kong's poorest areas. "Protesting in locales such as Mong Kok ... only adds to the threat of violence, given the population density and the presence of triad societies," said Steve Vickers, a risk consultant and a former commander of the Royal Hong Kong Police Criminal Intelligence Bureau. Triad gangs, he said, "may act as agitators for either side, or simply take actions to protect their own interests." Under the terms of the handover from Britain in 1997, Hong Kong was allowed to retain extensive freedoms not enjoyed on the mainland under a "one country, two systems" formula, including an independent judiciary and right to protest. But for many Hong Kong residents, the extradition bill is the latest step in a relentless march toward mainland control. Deep-seated anger with the government has seen scores of smaller groups protest in the streets and sparked grassroots initiatives such as crowdfunding drives and newspaper ad campaigns. Filling the streets Millions have taken to the streets since June in Hong Kong's largest and most violent protests in decades, with police firing rubber bullets and tear gas to disperse activists, and protesters storming and ransacking the Legislative Council. The protesters have adopted a "be water" strategy, inspired by a maxim of the city's home-grown martial arts legend, Bruce Lee, that encourages them to be flexible or formless. Some activists say it's a very different approach from that of the democracy demonstrations in 2014, when protesters occupied major roads in the city for 79 days. "We shall go on to the end, we shall fight in the streets, we shall fight in all districts of Hong Kong, we shall bring the fight from local arenas to international fronts, whatever the costs may be. We shall never surrender," the Students' Unions of Higher Institutions in Hong Kong said in a statement. The movement's fluidity makes it difficult to police, taking a toll on officers who have fought pitched battles with protesters and leading to a crisis of confidence on the force. The protests have at times paralysed parts of the financial district, shut government offices and disrupted business operations across the city. Hong Kong retailers warned that July and August sales could drop by double digits from a year earlier because of the unrest, while tourism numbers and hotel occupancy rates are slumping. Activists have seized on support for the protests to bolster the democratic opposition's prospects in the November elections, with the hope it can recapture its veto bloc from pro-establishment rivals. "There are political forces that would like to maintain enthusiasm among protesters. This is the driving force for some people to mobilise and motivate protesters," said veteran pollster Robert Chung. Lawmaker Regina Ip, in a letter to the South China Morning Post on Monday, said the protests were likely to continue in all 18 districts until the polls in late November. Others are digging in for a longer stretch. "What we're experiencing is an infinity war," said Joshua Wong, who was one of the leaders of the 2014 pro-democracy protests. "I am still optimistic."

Hong Kong's protesters dig in for long summer of discontent

In a packed <a href="https://www.wionews.com/world/all-you-need-to-know-about-shanghai-cooperation-organisation-227166">Shanghai</a> classroom on a hot afternoon, nearly a hundred "mom-and-pop" investors were honing their trading skills ahead of the first opening bell for China's Nasdaq-style tech board.

They were learning survival techniques from veteran trader Shen Shikang, who predicted "a burst of stir-frying" quick buying and selling of stocks when trading starts on Monday.

Markets are brutal, Shen warned, urging students to "be disciplined" and "cut their losses ruthlessly".

Eight months after President Xi Jinping unveiled plans for Shanghai's technology innovation board, the first batch of 25 companies ranging from chip-makers to biotech firms will debut on the STAR Market.

Modeled after Nasdaq, and complete with a US-style IPO system, STAR maybe China's boldest attempt at capital market reforms yet. It is also seen driven by Beijing's ambition to become technologically self-reliant as a prolonged trade war with Washington catches Chinese tech firms in the cross-fire.

China's notoriously volatile stock markets are not for the faint-hearted. But with looser trading rules designed to give market forces a bigger role in setting prices on the new board, even seasoned investors are bracing for a wild ride.

"You will see kamikaze squads in this market, definitely," said investment banker Terence Lin, using a local term for groups of die-hard punters who drive share prices to the sky.

Lin, CEO of boutique investment bank World Financial Holding Group, said that while Nasdaq is dominated by professional investors STAR risks becoming a playground for speculators.

"Many Chinese retail investors buy stocks on recommendations from chat groups in social media such as QQ and Wechat, without even knowing what those companies are doing."

Some analysts say the board's success will hinge largely on whether it can attract domestic listings from the likes of Alibaba or Tencent, or firms that could potentially be China's own Microsoft or Qualcomm. Foreign companies cannot list on the market.

Regulators urge calm, Investors buckle up

Regulators are calling for understanding. "Initially, there could be trading imbalances between supply and demand, and the market should look at fluctuations in a reasonable way," Liu Ti, deputy general manager of the Shanghai Stock Exchange, told a recent forum.

The first batch of companies to list raised about 37 billion yuan ($5.38 billion), amid frenzied demand and some eye-popping valuations that in one case was 171 times earnings.

The IPOs were 1,695 times oversubscribed among retail investors, setting the stage for a scramble in the secondary market when trading begins.

Zhou Liang, founder of Shanghai Minority Investment Management, said he has a massive number of IPO shares which he plans to sell to hungry buyers.

"Prices will be higher because investor enthusiasm runs high," Zhou said.

There will be no daily price limits during the first five days of a company's listing, after which stocks will be allowed to rise or fall up to 20 per cent in a day. Elsewhere in China, price gains are capped at 44 per cent on debut, and limited to 10 per cent swings in either direction thereafter.

And, for the first time, loss-making companies will be allowed to list in China, giving start-ups more access to funding. (For a FACTBOX with more details on the new market, see)

Reagan Li, fund manager at Shanghai V-Invest Co Ltd, expected "boisterous" trading initially. He said he would only buy shares of selected companies at reasonable prices, hoping "the market can give us such a chance."

China's NASDAQ

China's previous attempts to create its own Nasdaq have largely floundered.

Shenzhen's tech-heavy ChiNext, designed to be a driver of innovation, was launched a decade ago, but became a hotbed of speculation and corporate cheating. Investor confidence has still not fully recovered after that bubble burst during the broader 2015 market crash.

An over-the-counter equity market, the New Third Board, saw a similar fate. After the initial excitement, the board has been deserted by investors and issuers.

Having witnessed ChiNext's implosion, Luo Huasen said he has no plans to venture into STAR, at least initially.

"I suspect the craziness of this market will be beyond my understanding," said Luo, chairman of Shanghai Hengsui Asset Management. "I will stay on the sidelines."

($1 = 6.8802 Chinese yuan renminbi)

In a packed Shanghai classroom on a hot afternoon, nearly a hundred "mom-and-pop" investors were honing their trading skills ahead of the first opening bell for China's Nasdaq-style tech board.

In a packed Shanghai classroom on a hot afternoon, nearly a hundred "mom-and-pop" investors were honing their trading skills ahead of the first opening bell for China's Nasdaq-style tech board. They were learning survival techniques from veteran trader Shen Shikang, who predicted "a burst of stir-frying" quick buying and selling of stocks when trading starts on Monday. Markets are brutal, Shen warned, urging students to "be disciplined" and "cut their losses ruthlessly". Eight months after President Xi Jinping unveiled plans for Shanghai's technology innovation board, the first batch of 25 companies ranging from chip-makers to biotech firms will debut on the STAR Market. Modeled after Nasdaq, and complete with a US-style IPO system, STAR maybe China's boldest attempt at capital market reforms yet. It is also seen driven by Beijing's ambition to become technologically self-reliant as a prolonged trade war with Washington catches Chinese tech firms in the cross-fire. China's notoriously volatile stock markets are not for the faint-hearted. But with looser trading rules designed to give market forces a bigger role in setting prices on the new board, even seasoned investors are bracing for a wild ride. "You will see kamikaze squads in this market, definitely," said investment banker Terence Lin, using a local term for groups of die-hard punters who drive share prices to the sky. Lin, CEO of boutique investment bank World Financial Holding Group, said that while Nasdaq is dominated by professional investors STAR risks becoming a playground for speculators. "Many Chinese retail investors buy stocks on recommendations from chat groups in social media such as QQ and Wechat, without even knowing what those companies are doing." Some analysts say the board's success will hinge largely on whether it can attract domestic listings from the likes of Alibaba or Tencent, or firms that could potentially be China's own Microsoft or Qualcomm. Foreign companies cannot list on the market. Regulators urge calm, Investors buckle up Regulators are calling for understanding. "Initially, there could be trading imbalances between supply and demand, and the market should look at fluctuations in a reasonable way," Liu Ti, deputy general manager of the Shanghai Stock Exchange, told a recent forum. The first batch of companies to list raised about 37 billion yuan ($5.38 billion), amid frenzied demand and some eye-popping valuations that in one case was 171 times earnings. The IPOs were 1,695 times oversubscribed among retail investors, setting the stage for a scramble in the secondary market when trading begins. Zhou Liang, founder of Shanghai Minority Investment Management, said he has a massive number of IPO shares which he plans to sell to hungry buyers. "Prices will be higher because investor enthusiasm runs high," Zhou said. There will be no daily price limits during the first five days of a company's listing, after which stocks will be allowed to rise or fall up to 20 per cent in a day. Elsewhere in China, price gains are capped at 44 per cent on debut, and limited to 10 per cent swings in either direction thereafter. And, for the first time, loss-making companies will be allowed to list in China, giving start-ups more access to funding. (For a FACTBOX with more details on the new market, see) Reagan Li, fund manager at Shanghai V-Invest Co Ltd, expected "boisterous" trading initially. He said he would only buy shares of selected companies at reasonable prices, hoping "the market can give us such a chance." China's NASDAQ China's previous attempts to create its own Nasdaq have largely floundered. Shenzhen's tech-heavy ChiNext, designed to be a driver of innovation, was launched a decade ago, but became a hotbed of speculation and corporate cheating. Investor confidence has still not fully recovered after that bubble burst during the broader 2015 market crash. An over-the-counter equity market, the New Third Board, saw a similar fate. After the initial excitement, the board has been deserted by investors and issuers. Having witnessed ChiNext's implosion, Luo Huasen said he has no plans to venture into STAR, at least initially. "I suspect the craziness of this market will be beyond my understanding," said Luo, chairman of Shanghai Hengsui Asset Management. "I will stay on the sidelines." ($1 = 6.8802 Chinese yuan renminbi)

'Expect craziness' as China readies debut of Nasdaq-style board

Representatives from the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/robert-muller-to-testify-before-house-committees-on-us-russia-probe-in-july-congress-230456&amp;sa=U&amp;ved=2ahUKEwiMqYiKornjAhXKso8KHeq_DFMQFjACegQIDxAC&amp;usg=AOvVaw2sjx_-5jhYFhUOAKW0ZERJ">United States and Russia</a> are set to meet in Geneva on Wednesday to explore the concept of a new accord limiting nuclear arms that could eventually include China, senior US officials said on Monday.

US President Donald Trump has said that he would like to see a "next-generation" arms control deal with Russia and China to cover all types of nuclear weapons. He has broached the topic individually with Russian President Vladimir Putin and Chinese President Xi Jinping, including most recently at the G20 summit in Osaka last month.

China is not a party to nuclear arms pacts between the United States and Russia and it is unclear how willing Beijing would be to be drawn into talks, said the officials, who spoke to reporters on condition of anonymity.

"A good meeting would be some greater clarity about where the Russians see things going with the Chinese," one official said.

China's Foreign Ministry reiterated that the country had no interest in joining such talks.

"At present, we cannot see the preconditions or basis for China participating in these negotiations between the United States and Russia," ministry spokesman Geng Shuang told reporters in Beijing.

US Deputy Secretary of State John Sullivan will lead the delegation, which will include Tim Morrison, a top aide at the White House National Security Council, and representatives from the Pentagon, the Joint Chiefs of Staff, and the National Security Agency, the US officials said.

Russia's deputy foreign minister, Sergei Ryabkov, will lead the Russian delegation, the US officials said.

"We actually feel that - touch wood - we've actually got to a point where we can try to start this again," one US official said.

"I say touch wood because we're always just one incident away from unfortunately things getting derailed," the official said.

Relations between the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/putin-says-us-russia-relations-are-getting-worse-and-worse-226830&amp;sa=U&amp;ved=2ahUKEwiMqYiKornjAhXKso8KHeq_DFMQFjAAegQIBBAC&amp;usg=AOvVaw0tvrZETUunIs5K2GbpcHAL">United States and Russia</a> have been sour for years, deteriorating after Russia annexed Crimea from Ukraine in 2014 and backed Syrian President Bashar al-Assad in the Syrian war.

Trump has sought better relations but has been hamstrung by a two-year investigation into the 2016 influence campaign by Russian operatives to attack Trump's Democratic rival in the presidential election, Hillary Clinton.

The investigation by US Special Counsel Robert Mueller found there was insufficient evidence that the Trump campaign illegally conspired with Moscow. The Kremlin has denied any meddling.

Relations also frayed over Russia's poisoning of a former spy and his daughter on British soil, the detention of Ukrainian navy boats and crew near Crimea, and Russia's detention of US citizens, among other incidents.

The Geneva meeting will be just two weeks before the United States withdraws from the Cold War-era Intermediate-Range Nuclear Forces (INF) treaty that required both countries to eliminate short-range and intermediate-range nuclear and conventional missiles.

US authorities believe Moscow is developing and has deployed a ground-launched system in breach of the INF treaty that could allow it to launch a nuclear strike on Europe at short notice. Russia has consistently denied any such violation.

No breakthrough is expected on the INF treaty, the US officials said.

US officials also are not planning to discuss renewal of the 2011 New START treaty, a US-Russia arms control pact which limits deployed strategic nuclear weapons.

One of the officials told reporters it would be "premature" to talk about New START, which is set to expire in February 2021 but can be extended for five years if both sides agree, calling the issues a "next-year problem."

Representatives from the United States and Russia are set to meet in Geneva on Wednesday to explore the concept of a new accord limiting nuclear arms that could eventually include China, senior US officials said on Monday.

Representatives from the United States and Russia are set to meet in Geneva on Wednesday to explore the concept of a new accord limiting nuclear arms that could eventually include China, senior US officials said on Monday. US President Donald Trump has said that he would like to see a "next-generation" arms control deal with Russia and China to cover all types of nuclear weapons. He has broached the topic individually with Russian President Vladimir Putin and Chinese President Xi Jinping, including most recently at the G20 summit in Osaka last month. China is not a party to nuclear arms pacts between the United States and Russia and it is unclear how willing Beijing would be to be drawn into talks, said the officials, who spoke to reporters on condition of anonymity. "A good meeting would be some greater clarity about where the Russians see things going with the Chinese," one official said. China's Foreign Ministry reiterated that the country had no interest in joining such talks. "At present, we cannot see the preconditions or basis for China participating in these negotiations between the United States and Russia," ministry spokesman Geng Shuang told reporters in Beijing. US Deputy Secretary of State John Sullivan will lead the delegation, which will include Tim Morrison, a top aide at the White House National Security Council, and representatives from the Pentagon, the Joint Chiefs of Staff, and the National Security Agency, the US officials said. Russia's deputy foreign minister, Sergei Ryabkov, will lead the Russian delegation, the US officials said. "We actually feel that - touch wood - we've actually got to a point where we can try to start this again," one US official said. "I say touch wood because we're always just one incident away from unfortunately things getting derailed," the official said. Relations between the United States and Russia have been sour for years, deteriorating after Russia annexed Crimea from Ukraine in 2014 and backed Syrian President Bashar al-Assad in the Syrian war. Trump has sought better relations but has been hamstrung by a two-year investigation into the 2016 influence campaign by Russian operatives to attack Trump's Democratic rival in the presidential election, Hillary Clinton. The investigation by US Special Counsel Robert Mueller found there was insufficient evidence that the Trump campaign illegally conspired with Moscow. The Kremlin has denied any meddling. Relations also frayed over Russia's poisoning of a former spy and his daughter on British soil, the detention of Ukrainian navy boats and crew near Crimea, and Russia's detention of US citizens, among other incidents. The Geneva meeting will be just two weeks before the United States withdraws from the Cold War-era Intermediate-Range Nuclear Forces (INF) treaty that required both countries to eliminate short-range and intermediate-range nuclear and conventional missiles. US authorities believe Moscow is developing and has deployed a ground-launched system in breach of the INF treaty that could allow it to launch a nuclear strike on Europe at short notice. Russia has consistently denied any such violation. No breakthrough is expected on the INF treaty, the US officials said. US officials also are not planning to discuss renewal of the 2011 New START treaty, a US-Russia arms control pact which limits deployed strategic nuclear weapons. One of the officials told reporters it would be "premature" to talk about New START, which is set to expire in February 2021 but can be extended for five years if both sides agree, calling the issues a "next-year problem."

US, Russia to discuss nuclear arms limits in Geneva on Wednesday: Officials

US Secretary of State Mike Pompeo said on Monday he hoped both <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/opinions/us-president-donald-trump-and-north-korean-leader-kim-jong-un-have-to-find-real-common-ground-233182&amp;sa=U&amp;ved=2ahUKEwjC0JSz_7jjAhWDAYgKHUywD3AQFjAGegQIChAC&amp;usg=AOvVaw0ds6wbSgjNbNWme2mwF0XN">North Korea and the United States</a> could "be a little more creative" when the two sides restart talks aimed at ending Pyongyang's nuclear weapons programme.

Speaking in a radio interview on "The Sean Hannity Show," Pompeo did not say when the negotiations would resume. At the end of June he had said it would likely happen "sometime in July ... probably in the next two or three weeks."

President Donald Trump met with North Korean leader Kim Jong Un last month. During the meeting, Trump became the first sitting US president to cross into North Korea, and he said the pair agreed to restart working-level talks.

Trump and Kim have met three times and held two summits over the nuclear issue.

The talks in Hanoi in February collapsed without agreement, as the United States insisted North Korea completely denuclearize and North Korea pushed for relief from sanctions.

"I hope the North Koreans will come to the table with ideas that they didn't have the first time," Pompeo said in Monday's radio interview. "We hope we can be a little more creative too."

However, Pompeo added: "The president's mission hasn't changed: to fully and finally denuclearize North Korea in a way that we can verify. That's the mission set for these negotiations."

While Trump's latest meeting with Kim demonstrated a rapport between the two, policy analysts say the two sides appear no closer to narrowing their differences. They have yet even to agree a common definition of denuclearisation, which North Korea has taken to include the US. nuclear umbrella protecting Japan and South Korea.

Washington has demanded that Pyongyang give up its nuclear weapons unilaterally, and US officials have said US policy continues to be to maintain sanctions on North Korea until it gives up its nuclear weapons.

Ahead of February's failed summit in Hanoi, US officials had raised the possibility that while sanctions would remain, they might be willing to take interim steps such as boosting humanitarian aid or opening liaison offices.

But at the summit they rejected North Korea's offer to dismantle its reactor complex at Yongbyon in exchange for wide-ranging sanctions relief, and the steps Washington has so far offered have fallen far short of North Korean expectations.

Pompeo's latest remarks come after Chinese President <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/after-trump-xi-g20-meeting-us-china-resume-talks-to-resolve-trade-war-234508&amp;sa=U&amp;ved=2ahUKEwiWwdLL_7jjAhVEQd4KHa34A6EQFjAEegQIAxAC&amp;usg=AOvVaw1Kbel3-LoEHEp2PyW1q8vW">Xi Jinping</a> urged Trump to show flexibility in dealing with Pyongyang and to ease sanctions on the country "in due course."

China, North Korea's neighbour and main ally, signed up for UN sanctions after the North Koreans performed repeated nuclear and missile tests, but has suggested they could be reduced in return for denuclearisation steps.

South Korean officials have expressed uncertainty that the talks between the United States and North Korea can take place this month.

On Sunday, South Korea's Yonhap news agency quoted unnamed diplomatic sources as saying that the United States had proposed to North Korea that working-level talks be held this week and was awaiting a response.

North Korea has frozen missile and nuclear bomb testing since 2017, but US officials believe Pyongyang has continued to expand its arsenal by producing bomb fuel and missiles.

The State Department said last week it would hope to see a complete freeze in the North Korean nuclear programme as the start of a process of denuclearisation.

US Secretary of State Mike Pompeo said on Monday he hoped both North Korea and the United States could "be a little more creative" when the two sides restart talks aimed at ending Pyongyang's nuclear weapons programme.

US Secretary of State Mike Pompeo said on Monday he hoped both North Korea and the United States could "be a little more creative" when the two sides restart talks aimed at ending Pyongyang's nuclear weapons programme. Speaking in a radio interview on "The Sean Hannity Show," Pompeo did not say when the negotiations would resume. At the end of June he had said it would likely happen "sometime in July ... probably in the next two or three weeks." President Donald Trump met with North Korean leader Kim Jong Un last month. During the meeting, Trump became the first sitting US president to cross into North Korea, and he said the pair agreed to restart working-level talks. Trump and Kim have met three times and held two summits over the nuclear issue. The talks in Hanoi in February collapsed without agreement, as the United States insisted North Korea completely denuclearize and North Korea pushed for relief from sanctions. "I hope the North Koreans will come to the table with ideas that they didn't have the first time," Pompeo said in Monday's radio interview. "We hope we can be a little more creative too." However, Pompeo added: "The president's mission hasn't changed: to fully and finally denuclearize North Korea in a way that we can verify. That's the mission set for these negotiations." While Trump's latest meeting with Kim demonstrated a rapport between the two, policy analysts say the two sides appear no closer to narrowing their differences. They have yet even to agree a common definition of denuclearisation, which North Korea has taken to include the US. nuclear umbrella protecting Japan and South Korea. Washington has demanded that Pyongyang give up its nuclear weapons unilaterally, and US officials have said US policy continues to be to maintain sanctions on North Korea until it gives up its nuclear weapons. Ahead of February's failed summit in Hanoi, US officials had raised the possibility that while sanctions would remain, they might be willing to take interim steps such as boosting humanitarian aid or opening liaison offices. But at the summit they rejected North Korea's offer to dismantle its reactor complex at Yongbyon in exchange for wide-ranging sanctions relief, and the steps Washington has so far offered have fallen far short of North Korean expectations. Pompeo's latest remarks come after Chinese President Xi Jinping urged Trump to show flexibility in dealing with Pyongyang and to ease sanctions on the country "in due course." China, North Korea's neighbour and main ally, signed up for UN sanctions after the North Koreans performed repeated nuclear and missile tests, but has suggested they could be reduced in return for denuclearisation steps. South Korean officials have expressed uncertainty that the talks between the United States and North Korea can take place this month. On Sunday, South Korea's Yonhap news agency quoted unnamed diplomatic sources as saying that the United States had proposed to North Korea that working-level talks be held this week and was awaiting a response. North Korea has frozen missile and nuclear bomb testing since 2017, but US officials believe Pyongyang has continued to expand its arsenal by producing bomb fuel and missiles. The State Department said last week it would hope to see a complete freeze in the North Korean nuclear programme as the start of a process of denuclearisation.

Mike Pompeo hopes US, North Korea can be 'more creative' in nuclear talks

China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure.

While more upbeat June factory output and retail sales offered signs of improvement, some analysts cautioned the gains may not be sustainable and expect Beijing will continue to roll out more support measures in coming months.

China's trading partners and financial markets are closely watching the health of the world's second-largest economy as the <a href="https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526">Sino-US trade war</a> gets longer and costlier, fuelling worries of a global recession.

Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4%, amid expectations that Beijing needs to do more to boost consumption and investment and restore business confidence.

The April-June pace was in line with analysts' expectations for the slowest since the first quarter of 1992, the earliest quarterly data on record.

"China's growth could slow to 6% to 6.1% in the second half," said Nie Wen, an economist at Hwabao Trust. That would test the lower end of Beijing's 2019 target range of 6-6.5%.

Cutting banks' reserve requirement ratios (RRR) "is still very likely as the authorities want to support the real economy in a long run," he said, predicting the economy would continue to slow before stabilising around mid-2020.

China has already slashed RRR six times since early 2018 to free up more funds for lending and analysts polled by Reuters forecast two more cuts this quarter and next.

Beijing has leaned largely on fiscal stimulus to underpin growth this year, announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and a quota of 2.15 trillion yuan for special bond issuance by local governments aimed at boosting infrastructure construction.

The economy has been slow to respond, however, and business sentiment remains cautious.

Trade pressures have intensified since Washington sharply hiked tariffs on Chinese goods in May. While the two sides have since agreed to resume trade talks and hold off on further punitive action, they remain at odds over significant issues needed for an agreement.

Data on Friday showed China's exports fell in June and its imports shrank more than expected, while an official survey showed factories were shedding jobs at the fastest pace since the global crisis..

Premier Li Keqiang said this month that China will make timely use of cuts in banks' reserve ratios and other financing tools to support smaller firms, while repeating a vow not to use "flood-like" stimulus.

Is better data sustainable?

A steady string of weak economic data in recent months and the sudden escalation in the U.S.-China trade war had sparked questions over whether more forceful easing may be needed to get the Chinese economy back on steadier footing, including some form of interest rate cuts.

But June activity data on Monday showed industrial production, retail sales and fixed-asset investment all beat analysts' forecasts, suggesting that Beijing's earlier growth-boosting efforts may be starting to have an effect.

Analysts also say room for more aggressive monetary policy easing is being limited by fears of adding to high debt levels and structural risks.

"Cutting the benchmark deposit and lending rates -- the likelihood is very low. It's more possible (that) they twist the market-oriented rates -- cutting the interest rates of all those liquidity facilities also sends an important signal to the market," said Aidan Yao, senior Asia emerging markets economist at AXA Investment Managers in Hong Kong.

"Fiscal policy is likely to be in the driving seat and monetary policy will act in a supportive role in the coming months."

Industrial output climbed 6.3% from a year earlier, data from the National Bureau of Statistics showed, picking up from May's 17-year low and handily beating a forecast for 5.2% growth.

Daily output for crude steel and aluminium both rose to record levels.

Retail sales jumped 9.8% - the fastest clip since March 2018 - and confounding expectations for a slight pullback to 8.3%. Gains were led by a 17.2% surge in car sales.

Some analysts, however, questioned the apparent recovery in both output and sales.

Capital Economics said its in-house model suggested slower industrial growth, while the jump in car sales may have been partly due to a one-off factor.

Car dealers in China are offering big discounts to customers to reduce high inventories that have built up due to changing emission standards. Motor vehicle production actually fell 15.2%, the 11th monthly decline in a row, suggesting automakers don't expect a sustained bounce in demand any time soon.

"The monthly data were better than expected... (But) we are sceptical of this apparent recovery given broader evidence of weakness in factory activity," said Julian Evans-Pritchard, Senior China Economist at

"Looking ahead, we doubt that the data for June will mark the start of a turnaround."

Investment also slowly picking up

Fixed-asset investment for the first half of the year rose 5.8% from a year earlier, compared with a 5.5% forecast and 5.6% in the first five months of the year.

Real estate investment, a major growth driver for the world's second-largest economy, quickened in June. It rose 10.1% from a year earlier, accelerating from a 9.5% gain in May but still slower than in April, Reuters calculated.

Still, the economy remains in a complex situation, with external uncertainties on the rise, the statistics bureau said, adding China will work to ensure steady growth.

China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure.

China's economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting US trade pressure. While more upbeat June factory output and retail sales offered signs of improvement, some analysts cautioned the gains may not be sustainable and expect Beijing will continue to roll out more support measures in coming months. China's trading partners and financial markets are closely watching the health of the world's second-largest economy as the Sino-US trade war gets longer and costlier, fuelling worries of a global recession. Monday's growth data marked a loss of momentum for the economy from the first quarter's 6.4%, amid expectations that Beijing needs to do more to boost consumption and investment and restore business confidence. The April-June pace was in line with analysts' expectations for the slowest since the first quarter of 1992, the earliest quarterly data on record. "China's growth could slow to 6% to 6.1% in the second half," said Nie Wen, an economist at Hwabao Trust. That would test the lower end of Beijing's 2019 target range of 6-6.5%. Cutting banks' reserve requirement ratios (RRR) "is still very likely as the authorities want to support the real economy in a long run," he said, predicting the economy would continue to slow before stabilising around mid-2020. China has already slashed RRR six times since early 2018 to free up more funds for lending and analysts polled by Reuters forecast two more cuts this quarter and next. Beijing has leaned largely on fiscal stimulus to underpin growth this year, announcing massive tax cuts worth nearly 2 trillion yuan ($291 billion) and a quota of 2.15 trillion yuan for special bond issuance by local governments aimed at boosting infrastructure construction. The economy has been slow to respond, however, and business sentiment remains cautious. Trade pressures have intensified since Washington sharply hiked tariffs on Chinese goods in May. While the two sides have since agreed to resume trade talks and hold off on further punitive action, they remain at odds over significant issues needed for an agreement. Data on Friday showed China's exports fell in June and its imports shrank more than expected, while an official survey showed factories were shedding jobs at the fastest pace since the global crisis.. Premier Li Keqiang said this month that China will make timely use of cuts in banks' reserve ratios and other financing tools to support smaller firms, while repeating a vow not to use "flood-like" stimulus. Is better data sustainable? A steady string of weak economic data in recent months and the sudden escalation in the U.S.-China trade war had sparked questions over whether more forceful easing may be needed to get the Chinese economy back on steadier footing, including some form of interest rate cuts. But June activity data on Monday showed industrial production, retail sales and fixed-asset investment all beat analysts' forecasts, suggesting that Beijing's earlier growth-boosting efforts may be starting to have an effect. Analysts also say room for more aggressive monetary policy easing is being limited by fears of adding to high debt levels and structural risks. "Cutting the benchmark deposit and lending rates -- the likelihood is very low. It's more possible (that) they twist the market-oriented rates -- cutting the interest rates of all those liquidity facilities also sends an important signal to the market," said Aidan Yao, senior Asia emerging markets economist at AXA Investment Managers in Hong Kong. "Fiscal policy is likely to be in the driving seat and monetary policy will act in a supportive role in the coming months." Industrial output climbed 6.3% from a year earlier, data from the National Bureau of Statistics showed, picking up from May's 17-year low and handily beating a forecast for 5.2% growth. Daily output for crude steel and aluminium both rose to record levels. Retail sales jumped 9.8% - the fastest clip since March 2018 - and confounding expectations for a slight pullback to 8.3%. Gains were led by a 17.2% surge in car sales. Some analysts, however, questioned the apparent recovery in both output and sales. Capital Economics said its in-house model suggested slower industrial growth, while the jump in car sales may have been partly due to a one-off factor. Car dealers in China are offering big discounts to customers to reduce high inventories that have built up due to changing emission standards. Motor vehicle production actually fell 15.2%, the 11th monthly decline in a row, suggesting automakers don't expect a sustained bounce in demand any time soon. "The monthly data were better than expected... (But) we are sceptical of this apparent recovery given broader evidence of weakness in factory activity," said Julian Evans-Pritchard, Senior China Economist at "Looking ahead, we doubt that the data for June will mark the start of a turnaround." Investment also slowly picking up Fixed-asset investment for the first half of the year rose 5.8% from a year earlier, compared with a 5.5% forecast and 5.6% in the first five months of the year. Real estate investment, a major growth driver for the world's second-largest economy, quickened in June. It rose 10.1% from a year earlier, accelerating from a 9.5% gain in May but still slower than in April, Reuters calculated. Still, the economy remains in a complex situation, with external uncertainties on the rise, the statistics bureau said, adding China will work to ensure steady growth.

China second-quarter GDP growth slows to 27-year low, more stimulus expected

US officials will soon resume face-to-face trade talks in China, a White House official said Friday, reviving negotiations that had verged on collapse in May.

President Donald Trump and China's leader Xi Jinping agreed to "fully engage" on trade when they met in Osaka at the end of June, and since then trade officials have spoken by phone, White House trade advisor Peter Navarro said on CNBC.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will go to Beijing "in the very near future and we're going to have constructive talks to deal with these significant structural issues," Navarro said.

The trade dispute has roiled global financial markets and undermined business confidence as Washington and Beijing have lashed out at each other with punitive tariffs on about $360 billion in goods.

The sides appeared to be close to a deal as recently as April but Trump accused China of reneging on its commitments, scuttling the talks until the leaders met on the sidelines on Group of 20 summit in Osaka, where Navarro said they made a "strong commitment" to restart negotiations.

Trump at that meeting agreed to hold off on his threat to hit China with another round of steep tariffs that would cover nearly all the goods exported to the US market.

In another Twitter outburst Friday, Trump called tariffs "a great negotiating tool" and "a great revenue producer."&nbsp;

And he again accused China of weakening its currency to compensate for the 25 per cent tariff.

Lighthizer and Mnuchin spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan by phone on Tuesday, but officials have not provided any details on the status or the topics discussed other than to say they were constructive.

"We are, in my judgment, in a quiet period for the negotiations. My advice for investors is to be patient with this process," Navarro said.

"Don't believe anything you read in either the Chinese or the US press about these negotiations unless it comes from the mouths of either the President or Ambassador Lighthizer."

US officials will soon resume face-to-face trade talks in China, a White House official said Friday, reviving negotiations that had verged on collapse in May. President Donald Trump and China's leader Xi Jinping agreed to "fully engage" on trade when they met in Osaka at the end of June, and since then trade officials have spoken by phone, White House trade advisor Peter Navarro said on CNBC.

US officials will soon resume face-to-face trade talks in China, a White House official said Friday, reviving negotiations that had verged on collapse in May. President Donald Trump and China's leader Xi Jinping agreed to "fully engage" on trade when they met in Osaka at the end of June, and since then trade officials have spoken by phone, White House trade advisor Peter Navarro said on CNBC. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will go to Beijing "in the very near future and we're going to have constructive talks to deal with these significant structural issues," Navarro said. The trade dispute has roiled global financial markets and undermined business confidence as Washington and Beijing have lashed out at each other with punitive tariffs on about $360 billion in goods. The sides appeared to be close to a deal as recently as April but Trump accused China of reneging on its commitments, scuttling the talks until the leaders met on the sidelines on Group of 20 summit in Osaka, where Navarro said they made a "strong commitment" to restart negotiations. Trump at that meeting agreed to hold off on his threat to hit China with another round of steep tariffs that would cover nearly all the goods exported to the US market. In another Twitter outburst Friday, Trump called tariffs "a great negotiating tool" and "a great revenue producer." And he again accused China of weakening its currency to compensate for the 25 per cent tariff. Lighthizer and Mnuchin spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan by phone on Tuesday, but officials have not provided any details on the status or the topics discussed other than to say they were constructive. "We are, in my judgment, in a quiet period for the negotiations. My advice for investors is to be patient with this process," Navarro said. "Don't believe anything you read in either the Chinese or the US press about these negotiations unless it comes from the mouths of either the President or Ambassador Lighthizer."

US trade negotiators will travel to China in 'very near future': Official

<a href="https://www.wionews.com/world/us-president-donald-trump-seeks-to-override-supreme-court-ruling-on-census-233448">US President Donald Trump</a> on Wednesday ordered an investigation into France's planned tax on technology companies, a probe that could lead to the United States imposing new tariffs or other trade restrictions.

"The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," <a href="https://www.wionews.com/world/us-china-trade-negotiators-hold-talks-ahead-of-xi-trump-meeting-report-230147">US Trade Representative Robert Lighthizer</a> said in a statement announcing the investigation.

The move gives Lighthizer up to a year to investigate if France's digital-tax plan would hurt US technology companies.

The "Section 301" investigation will determine if the levy poses an unfair trade practice. Prior investigations have covered Chinese trade practices and <a href="https://www.wionews.com/world/european-union-strongly-urges-iran-to-stop-nuclear-enrichment-234076">European Union</a> subsidies on large commercial aircraft.

French finance minister Bruno Le Maire said in March that a 3 per cent tax on the French revenue of large internet companies could yield $563 million&nbsp;a year.

USTR said in a statement the "services covered are ones where US firms are global leaders. The structure of the proposed new tax, as well as statements by officials, suggest that France is unfairly targeting the tax at certain US-based technology companies."

Lighthizer said Trump "has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce."

Le Maire said the tax would target some 30 companies, mostly American but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies.

The tax would affect companies with at least $844 million&nbsp;in annual revenues and apply to revenue from digital business including online advertising. Companies such as Alphabet Inc's Google, Apple Inc, Facebook Inc, and Amazon.com Inc would likely be subject to the tax.

The technology industry lobby group ITI, which represents Apple, Amazon, Google, and other tech companies, urged the United States not to resort to tariffs in the dispute.

"We support the US government’s efforts to investigate these complex trade issues but urge it to pursue the 301 investigations in a spirit of international cooperation and without using tariffs as a remedy," Jennifer McCloskey, ITI’s vice president of policy, said in a statement.

Senate Finance Committee Chairman Chuck Grassley, a Republican, and Senator Ron Wyden, the top Democrat on the panel, praised the investigation.

"The digital services tax that France and other European countries are pursuing is clearly protectionist and unfairly targets American companies in a way that will cost US jobs and harm American workers," they said in a joint statement.

"The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway," the statement added.

Lighthizer said the United States "will continue its efforts with other countries at the OECD to reach a multilateral agreement to address the challenges to the international tax system posed by an increasingly digitized global economy."

Bloomberg Tax reported the investigation earlier, citing two people familiar with the matter.

US President Donald Trump on Wednesday ordered an investigation into France's planned tax on technology companies, a probe that could lead to the United States imposing new tariffs or other trade restrictions.

US President Donald Trump on Wednesday ordered an investigation into France's planned tax on technology companies, a probe that could lead to the United States imposing new tariffs or other trade restrictions. "The United States is very concerned that the digital services tax which is expected to pass the French Senate tomorrow unfairly targets American companies," US Trade Representative Robert Lighthizer said in a statement announcing the investigation. The move gives Lighthizer up to a year to investigate if France's digital-tax plan would hurt US technology companies. The "Section 301" investigation will determine if the levy poses an unfair trade practice. Prior investigations have covered Chinese trade practices and European Union subsidies on large commercial aircraft. French finance minister Bruno Le Maire said in March that a 3 per cent tax on the French revenue of large internet companies could yield $563 million a year. USTR said in a statement the "services covered are ones where US firms are global leaders. The structure of the proposed new tax, as well as statements by officials, suggest that France is unfairly targeting the tax at certain US-based technology companies." Lighthizer said Trump "has directed that we investigate the effects of this legislation and determine whether it is discriminatory or unreasonable and burdens or restricts United States commerce." Le Maire said the tax would target some 30 companies, mostly American but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies. The tax would affect companies with at least $844 million in annual revenues and apply to revenue from digital business including online advertising. Companies such as Alphabet Inc's Google, Apple Inc, Facebook Inc, and Amazon.com Inc would likely be subject to the tax. The technology industry lobby group ITI, which represents Apple, Amazon, Google, and other tech companies, urged the United States not to resort to tariffs in the dispute. "We support the US government’s efforts to investigate these complex trade issues but urge it to pursue the 301 investigations in a spirit of international cooperation and without using tariffs as a remedy," Jennifer McCloskey, ITI’s vice president of policy, said in a statement. Senate Finance Committee Chairman Chuck Grassley, a Republican, and Senator Ron Wyden, the top Democrat on the panel, praised the investigation. "The digital services tax that France and other European countries are pursuing is clearly protectionist and unfairly targets American companies in a way that will cost US jobs and harm American workers," they said in a joint statement. "The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway," the statement added. Lighthizer said the United States "will continue its efforts with other countries at the OECD to reach a multilateral agreement to address the challenges to the international tax system posed by an increasingly digitized global economy." Bloomberg Tax reported the investigation earlier, citing two people familiar with the matter.

Trump administration 'very concerned' over French plan to tax US tech companies

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims rising to 223,000 in the latest week.

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week.

The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling.&nbsp;

Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data.

There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade.

<a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">Federal Reserve Chairman Jerome Powell</a> told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story)

Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades.

&nbsp;Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch.

Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy.&nbsp;

The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects.

Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March.&nbsp;

The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy.

The number of Americans filing applications for unemployment benefits dropped to a three-month low last week, suggesting sustained labor market strength that could help support a slowing economy. Initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April, the Labor Department said on Thursday. Data for the prior week was revised to show 1,000 more applications received than previously reported. Economists polled by Reuters had forecast claims rising to 223,000 in the latest week. The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 3,250 to 219,250 last week. The Labor Department said no claims were estimated last week. The claims data is entering a period of volatility as auto manufacturers temporarily shut down assembly plants for summer retooling. Companies carry out the plant closures at different times, which can throw off the model the government uses to strip out seasonal fluctuations from the data. There is still no sign of an increase in layoffs related to a trade war between the United States and China, which has helped to dim the economy's outlook and raise expectations for an interest rate cut this month, the first in a decade. Federal Reserve Chairman Jerome Powell told lawmakers on Wednesday that the US central bank would "act as appropriate" to protect the economy from the trade tensions and slowing global growth. (Full Story) Fed officials are scheduled to meet on July 30-31. The economy is also slowing as last year's massive stimulus from tax cuts and more government spending fades. Manufacturing is struggling, the trade deficit is widening again, consumer spending is rising moderately and the housing sector remains mired in a soft patch. Despite the rising risks to the 10-year old economic expansion, the longest in history, the labor market remains healthy. The economy created 224,000 jobs in June. While the unemployment rate ticked up one-tenth of a percentage point to 3.7%, that was because more people entered the labor market, a sign of confidence in their employment prospects. Thursday's claims report also showed the number of people receiving benefits after an initial week of aid increased 27,000 to 1.72 million for the week ended June 29, the highest level since March. The four-week moving average of the so-called continuing claims rose 5,750 to 1.69 million.

United States weekly jobless claims fall to three-month low

Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month.

MSCI's broadest index of <a href="https://www.wionews.com/business-economy/asian-shares-fall-as-bets-off-on-sharp-us-rate-cuts-233889">Asia-Pacific shares</a> outside Japan advanced 0.4 per cent,&nbsp;after three sessions of losses.

South Korea edged up 0.4%, but Japan's Nikkei lagged with a loss of 0.1 per cent&nbsp;E-Mini futures for the S&amp;P 500 were flat, while EURO STOXX and FTSE futures pointed to small opening gains in Europe.

Chinese blue chips barely budged as data showed inflation remained stubbornly subdued despite a spike in pork prices.

A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when testifying to Congress on Wednesday.

Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday's upbeat jobs report.

"We still think the odds favour a 25 bps 'insurance' cut," said Kevin Cummins, a senior US economist at NatWest Markets.

"The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts."

Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the US economy run "a little hotter."

Lurking in the background, the US and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said.

Wall Street had been duly circumspect on Tuesday, with the Dow ending down 0.08%, while the S&amp;P 500 added 0.12% and the Nasdaq 0.54%.

A little More Yield

The cooling in US rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.917% from the recent trough of 1.696%.

That, in turn, has helped the dollar bounce on a basket of currencies to 97.500 from a June low of 95.843.

The dollar also firmed to 108.90 yen, while the euro faded to $1.1206 having been as high as $1.1412 just a couple of weeks ago.

The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy.

The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policymakers tried to slow the currency's recent rally.

The dollar's gains took the shine off gold, which eased 0.3 per cent to $1,393.68 per ounce.

Oil prices were supported by Middle East tensions and news that US stockpiles fell for a fourth week in a row, easing concerns about oversupply.

Brent crude futures rose 64 cents to $64.80, while US crude gained 82 cents to $58.65 a barrel.

Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month.

Asian shares pulled ahead on Wednesday while rising Treasury yields lifted the dollar as investors waited anxiously to hear if the world's most powerful central banker would confirm or confound expectations for US easing this month. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 per cent, after three sessions of losses. South Korea edged up 0.4%, but Japan's Nikkei lagged with a loss of 0.1 per cent E-Mini futures for the S&P 500 were flat, while EURO STOXX and FTSE futures pointed to small opening gains in Europe. Chinese blue chips barely budged as data showed inflation remained stubbornly subdued despite a spike in pork prices. A worrying lack of inflation globally is one reason investors are counting on Federal Reserve Chair Jerome Powell to sound suitably dovish when testifying to Congress on Wednesday. Futures are still fully priced for a 25-basis-point cut at the Fed's July 30-31 meeting but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday's upbeat jobs report. "We still think the odds favour a 25 bps 'insurance' cut," said Kevin Cummins, a senior US economist at NatWest Markets. "The Fed's consideration of rate cuts is not only about growth but also about inflation, which remains well below target, and inflation expectations, which were breaking to the downside before the Fed signalled the likelihood of cuts." Overnight, Atlanta Fed bank president Raphael Bostic let nothing out of the bag by saying the central bank was debating the risks and benefits of letting the US economy run "a little hotter." Lurking in the background, the US and Chinese trade officials held "constructive" talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said. Wall Street had been duly circumspect on Tuesday, with the Dow ending down 0.08%, while the S&P 500 added 0.12% and the Nasdaq 0.54%. A little More Yield The cooling in US rate fever has seen bonds give back just a little of their huge rally, with yields on two-year Treasuries rising to 1.917% from the recent trough of 1.696%. That, in turn, has helped the dollar bounce on a basket of currencies to 97.500 from a June low of 95.843. The dollar also firmed to 108.90 yen, while the euro faded to $1.1206 having been as high as $1.1412 just a couple of weeks ago. The Mexican peso was nursing a few bruises after sliding on Tuesday when the country's moderate Finance Minister Carlos Urzua suddenly resigned, citing "extremism" in economic policy. The Canadian dollar was on the defensive ahead of a rate meeting by the Bank of Canada in case policymakers tried to slow the currency's recent rally. The dollar's gains took the shine off gold, which eased 0.3 per cent to $1,393.68 per ounce. Oil prices were supported by Middle East tensions and news that US stockpiles fell for a fourth week in a row, easing concerns about oversupply. Brent crude futures rose 64 cents to $64.80, while US crude gained 82 cents to $58.65 a barrel.

Asia shares rise as US dollar moves up

<a href="https://www.wionews.com/business-economy/china-continues-to-be-key-driver-of-global-economy-experts-205273">China's economic growth</a> is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

The median forecast was unchanged from the last poll in April.

But a stream of downbeat data in recent months and higher <a href="https://www.wionews.com/world/china-says-us-tariffs-must-be-lifted-to-reach-a-deal-to-end-trade-war-232996">US tariffs</a> have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses.

Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China</a> will post its second-quarter gross domestic product (GDP) on July 15.

Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll.

Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half.

But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures.

"We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said.

So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges.

But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens.

The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years.

It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017.

Growth next year will likely cool further to 6.0 per cent, the poll showed.

Trade Uncertainty&nbsp;

Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies.

But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession.

US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track.

But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks.

"Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added.

Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing.

"We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018."

The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018.

More Measures Expected

Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year.

But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns.

Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month.

The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower.

Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter.

Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020.

The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent.

Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States.

China's economic growth is expected to slow to a near 30-year low of 6.2 per cent this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States. The median forecast was unchanged from the last poll in April. But a stream of downbeat data in recent months and higher US tariffs have fanned expectations that Beijing will need to roll out more stimulus soon to ward off a sharper slowdown that could stoke job losses. Second-quarter growth was seen cooling to 6.2 per cent from a year earlier, the same as in the previous poll, from 6.4 per cent in the first quarter. China will post its second-quarter gross domestic product (GDP) on July 15. Most of the 72 institutions covered in the survey expect growth will remain at 6.2 per cent for the rest of this year, compared with expectations for a tick-up to 6.3 per cent in the previous poll. Zhang Yiping, the senior economist at Merchants Securities in Shenzhen, said he expected the US tariff hike in May on $200 billion of Chinese goods to weigh on growth in the second half. But Zhang said authorities are likely to stick to more moderate policy easing, rather than resorting to more aggressive measures. "We expect policy this year would focus more on building a floor to underpin the economy, rather than to boost growth," he said. So far, China's stimulus measures have been more restrained than in past downturns, which analysts attribute to fears of adding to a mountain of debt left over from past credit binges. But the central bank governor reportedly said last month that there is "tremendous" room to adjust policy if the trade war worsens. The full-year forecast would be nearing the lower end of the government's 2019 target range of 6-6.5 per cent, and would mark the weakest pace of growth China has seen in 29 years. It would also spell a further deceleration from 6.6 per cent in 2018 and 6.8 per cent in 2017. Growth next year will likely cool further to 6.0 per cent, the poll showed. Trade Uncertainty Beijing has been relying on a combination of fiscal stimulus and monetary easing to weather the current slowdown, including hundreds of billions of dollars in infrastructure spending and tax cuts for companies. But the economy has been slow to respond, and investors fear a longer and costlier trade war between the world's two largest economies could trigger a global recession. US President Donald Trump told counterpart Xi Jinping late last month that he is putting threatened additional levies on hold as they agreed to get trade negotiations back on track. But Washington sharply raised tariffs on $200 billion of goods from China in May, which remain in force, and no timeframe was set for the talks. "Trade frictions would remain in the long run despite the truce reached last month. We expect the standoff to morph into more forms such as a tech war, to put further strain on China's economy," Zhang added. Capital Economics believes China's fiscal policy will become even more supportive, which would be most likely achieved by relaxing constraints on off-budget borrowing. "We now expect our estimates of the augmented fiscal deficit, which includes off-budget borrowing, to widen in the coming quarters and average 8 per cent of GDP this year, up from 6.4 per cent in 2018." The government has announced a rise in its budget deficit to 2.8 per cent of GDP this year from 2.6 per cent in 2018. More Measures Expected Analysts in the latest Reuters poll expect the People's Bank of China (PBOC) will ease policy further this year. But they do not expect it to cut its benchmark lending rate, as it repeatedly did in past downturns. Separately, some other China watchers have recently raised the possibility of cut in the PBOC's benchmark or one of its short-term rates if the US central bank starts easing policy as soon as this month. The PBOC has slashed banks' reserve requirement ratio (RRR) six times since early 2018 to turn around soft credit growth. It has also injected large amounts of liquidity into the financial system and guided short-term interest rates lower. Analysts forecast two more RRR cuts of 50 basis points each in this quarter and the last quarter. Economists expect the central bank to keep its benchmark rate unchanged at 4.35 percent through at least the end of 2020. The poll also predicted annual consumer inflation will pick up to 2.3 per cent in 2019, quickening from 2.1 per cent estimate in the April survey, but below the government target of around 3 per cent. Data this week showed China's producer prices stalled in June while consumer price growth reached a 15-month high as supply shortages triggered by the African swine fever outbreak and extreme weather continued to push up pork and fruit prices.

China's 2019 growth seen slowing to 6.2 per cent as trade war weighs: Report

Torrential rain in east and south <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China</a> has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday.

Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in <a href="https://www.wionews.com/south-east-asia/southeast-asian-leaders-meet-expected-to-discuss-rohingyas-south-china-sea-229680">south China</a>, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.634 million people. A total of 77,000 people have been relocated.

The inclement weather also damaged 126,100 hectares of crops. More than 1,600 houses collapsed and over 7,900 were damaged to varying degrees, causing a direct economic loss of 2.69 billion yuan (about 377 million US dollars).

The rain also caused the water levels of some rivers to rise above the warning levels. The Office of State Flood Control and Drought Relief Headquarters issued the lowest level emergency response plan on Tuesday and sent four working groups to some of those regions to join the relief operations.

The Office, together with the National Food and Strategic Reserves Administration, also deployed 50 rubber boats to Jiangxi Province on Tuesday to join the rescue operation.

Torrential rain in east and south China has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday. Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in south China, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.

Torrential rain in east and south China has affected more than 1.63 million people, the Ministry of Emergency Management said on Tuesday. Rainstorm which has battered Zhejiang and Jiangxi provinces in east China, Hunan Province in central China, Guangxi Zhuang Autonomous Region in south China, Chongqing Municipality, Sichuan Province and Guizhou Province in southwest China, affecting the lives of 1.634 million people. A total of 77,000 people have been relocated. The inclement weather also damaged 126,100 hectares of crops. More than 1,600 houses collapsed and over 7,900 were damaged to varying degrees, causing a direct economic loss of 2.69 billion yuan (about 377 million US dollars). The rain also caused the water levels of some rivers to rise above the warning levels. The Office of State Flood Control and Drought Relief Headquarters issued the lowest level emergency response plan on Tuesday and sent four working groups to some of those regions to join the relief operations. The Office, together with the National Food and Strategic Reserves Administration, also deployed 50 rubber boats to Jiangxi Province on Tuesday to join the rescue operation.

Torrential rain affects over 1.63 million people in China

The <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">United States and China are set to relaunch trade talks</a> this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

After meeting with Chinese President Xi Jinping in Japan just in late June, US President <a href="https://www.wionews.com/world/g20-summit-donald-trump-confirms-wont-impose-new-tariffs-on-china-231445">Donald Trump agreed to suspend a new round of tariffs</a> on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations.

Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies.

But sources familiar with the talks and <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">China trade</a> watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May.

A US official said last week the <a href="https://www.wionews.com/world/us-china-trade-officials-aim-to-talk-next-week-officials-233488">discussions were expected to resume with a phone call</a> between US <a href="https://www.wionews.com/business-economy/oil-prices-drop-as-trade-tensions-stoke-economy-worries-234147">Trade </a>Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin.

A USTR spokesman said the call was expected this week, but gave no further details.

The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace.

"We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck."

Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides.

Watch: US-China trade friction hurting world economic chain: Chinese scholars

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"The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added.

No firm commitments

Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka.

Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities.

In pics: <a href="https://www.wionews.com/photos/why-china-is-afraid-of-us-abrams-tanks-to-be-delivered-to-taiwan-234260">Why China is afraid of US Abrams tanks to be delivered to Taiwan</a>

One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement.

Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs.

"The Chinese have been clear they didn't promise anything," said one source familiar with the talks.

"The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies."

Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133].

Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US&nbsp;firms to sell products and services to Huawei [nL2N24402Y]

Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs.

So the focus on the upcoming talks will be the scrapping on the tariffs, they say.

A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal."

One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues.

"The negotiating environment is even more severe," the official said.

Another official said <a href="https://www.wionews.com/world/sale-of-weapons-to-taiwan-violates-one-china-policy-cancel-it-immediately-china-to-us-234236">China remained concerned</a> about the presence of hawks in the US&nbsp;team, such as Trump advisor Peter Navarro.

"There are bullies there," the official said.

The officials spoke to Reuters on condition of anonymity.

China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests".

A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced.

"A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials.

Which text?

There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports.

Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty.

Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out.

Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges.

US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides.

Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal.

"It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win."

One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed.

The United States and China are set to relaunch trade talks this week after a two-month hiatus, but a year after their trade war began there is little sign their differences have narrowed. After meeting with Chinese President Xi Jinping in Japan just in late June, US President Donald Trump agreed to suspend a new round of tariffs on $300 billion worth of imported Chinese consumer goods while the two sides resumed negotiations. Trump said then that China would restart large purchases of US agricultural commodities, and the United States would ease some export restrictions on Chinese telecom equipment giant Huawei Technologies. But sources familiar with the talks and China trade watchers in Washington say the summit did little to clear the path for top negotiators to resolve an impasse that caused trade deal talks to break down in early May. A US official said last week the discussions were expected to resume with a phone call between US Trade Representative Robert Lighthizer, Chinese Vice Premier Liu He and Treasury Secretary Steven Mnuchin. A USTR spokesman said the call was expected this week, but gave no further details. The United States is demanding that China make sweeping policy changes to better protect American intellectual property, end the forced transfer and theft of trade secrets and curb massive state industrial subsidies. At stake, US officials say, is the dominance of the high-tech industries of the future, from artificial intelligence to aerospace. "We've had a change in atmospherics," said Derek Scissors, a China expert at the American Enterprise Institute, a business-oriented Washington think tank. "While this is great for markets, the administration has not said one specific thing about how we're unstuck." Scissors, who has at times consulted with Trump administration officials, said that both sides got what they wanted out of the summit -- a lowering of the temperature and the avoidance of new tariffs that would have been painful for both sides. Watch: US-China trade friction hurting world economic chain: Chinese scholars × "The pressure for one side to give in to the other is diffused right now. I expect this to drag out for months," Scissors added. No firm commitments Washington and Beijing appear to have different ideas of what the two leaders agreed in Osaka. Three sources familiar with the state of negotiations say that the Chinese side did not make firm commitments to immediately purchase agricultural commodities. In pics: Why China is afraid of US Abrams tanks to be delivered to Taiwan One of the sources said Trump raised the issue of agricultural purchases twice during the meeting, but Xi only agreed to consider purchases in the context of a broader final agreement. Other than a small purchase of American rice by a private Chinese firm, no purchases have materialized. Chinese officials and state media accounts in the past week have emphasized that any deal, including agricultural purchases, is dependent on the removal of US tariffs. "The Chinese have been clear they didn't promise anything," said one source familiar with the talks. "The idea they would give up their main leverage before getting anything doesn’t make sense. I could see them buying some pork and buying some soybeans, but it's still going to be pennies." Trump administration officials have also downplayed the extent of pledges to allow Huawei to purchase US technology products, with White House trade adviser Peter Navarro saying that only "lower-tech" US semiconductors could be made available for sale to the company. [nL2N243133]. Reuters reported last week that the Commerce Department's export control enforcement staff was told to continue to treat Huawei as a blacklisted entity as the department considers requests for licenses to US firms to sell products and services to Huawei [nL2N24402Y] Chinese officials point out that they only got the United States to concede on Huawei at the Osaka talks, rather than on their other demand, which was removing the existing tariffs. So the focus on the upcoming talks will be the scrapping on the tariffs, they say. A second source said that US tariffs on $250 billion worth of Chinese goods and Chinese tariffs on $160 billion worth of US goods could wind up being "the new normal." One Chinese official familiar with the situation said that trade talks would be re-started very quickly, but that there was a "fairly large gap" in the core demands of both countries and it would be a challenge to reach consensus on the toughest issues. "The negotiating environment is even more severe," the official said. Another official said China remained concerned about the presence of hawks in the US team, such as Trump advisor Peter Navarro. "There are bullies there," the official said. The officials spoke to Reuters on condition of anonymity. China's foreign ministry cited Xi as telling Trump at Osaka that "on issues concerning China's sovereignty and dignity, China must safeguard its core interests". A senior Beijing-based Asia diplomat said there would be pressure on China's leadership not to give in to the United States and for any outcomes to seen as equal and balanced. "A trade deal cannot be portrayed as a victory for the United States," the diplomat said, citing conversations with Chinese officials. Which text? There has been no indication the two sides will resume negotiations using a text that had been largely agreed before China backtracked on commitments in early May, prompting Trump to proceed with a long-threatened tariff hike to 25 per cent on a $200 billion list of Chinese imports. Beijing had cut out of that text commitments to make changes to its laws reflecting reform pledges, arguing that this would violate its national sovereignty. Lighthizer has insisted on legal changes to make it more likely that Chinese reform pledges will be carried out. Finding a way around this issue is paramount for talks. Beyond that, there are many other difficult issues to resolve, including the structure of an enforcement mechanism designed to hold the two sides to their pledges. US demands for curbs to provincial and local subsidies for Chinese state companies, access to China's cloud computing market, agricultural biotech approvals and the ultimate size of China's purchases of agricultural products are all divisive issues for the two sides. Claire Reade, a former China trade negotiator at USTR who is now a Washington-based trade lawyer with the firm Arnold and Porter, said there was room on both sides to get a deal. "It's a question of political will and there are ways to manoeuvre around the current red flags that have been put in the ground," Reade said. "Both President Xi and President Trump have to come out of this saying they stood strong, and they in-effect got a win." One way for China to avoid the appearance of giving in to US demands is to take some legal steps on key issues before the deal is agreed. That way they can say they’re doing it on their terms, she added.

United States, China to relaunch talks with little changed since deal fell apart

Why China is afraid of US Abrams tanks to be delivered to Taiwan

<a href="https://www.wionews.com/south-asia/sheikh-hasina-calls-india-bangladesh-ties-organic-232905">Bangladesh Prime Minister Sheikh Hasina</a> on Monday criticised a top US lawmaker's proposal to merge <a href="https://www.wionews.com/south-asia/dozens-of-boat-people-found-stranded-in-myanmars-rakhine-official-234047">Myanmar's restive Rakhine state</a> into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable".

On June 13, the proposal was placed in the US Congress for bringing Rakhine state in Myanmar under Bangladesh since millions of <a href="https://www.wionews.com/south-east-asia/southeast-asian-leaders-meet-expected-to-discuss-rohingyas-south-china-sea-229680">Rohingyas</a> fled the Buddhist-majority country and taken refuge in the neighbouring nation.

The proposal was made by Congressman Bradley Sherman, Chairman of the Sub-committee on Asia-Pacific, during a hearing on the State Department`s budget for South Asia.

"It is never right to create troubles inside a sovereign country. And the issue they have touched upon is already a burning one. There has not been any peace wherever they have stepped in but instead, it has led to militancy and unrest," Hasina was quoted by bdnews24 as saying while reacting to the proposal.

"We are trying to bring peace to this region. But they are trying to start a fire here. This is not acceptable," she said.&nbsp;

Underlining that Bangladesh respected Myanmar`s sovereignty, Hasina said that her government would never allow the integration of a territory of one`s country with another.

"We have our borders and we are happy with it. We completely disagree with adding another country's territory to ours. We will never take it," she stressed.&nbsp;

The Bangladeshi leader advised Sherman to instead urge Myanmar to allow Rohingyas to return to the country and asked the US to initiate an investigation into human rights violations.

"Sherman should instead urge Myanmar to take back its citizens. That would be a humanitarian act. And they should also look into all the human rights violations," Hasina said.

Hasina, who recently paid a state visit to China, said she held talks with President Xi Jinping and Prime Minister Li Keqiang on Rohingya crisis and informed that Beijing will work on resolving the pressing issue.

Over 1.1 million Rohingyas have been forced to take shelter in Bangladesh`s Cox Bazaar after Myanmar`s armed forces while responding to attacks by an armed group, launched a brutal campaign against the community in Rakhine state in 2017.

According to a UN report, titled 'Forced Migration of Rohingya: The Untold Experience', around 18,000 Rohingya women and girls were allegedly raped by Myanmar's security forces and over 115,000 Rohingya homes were burned down and 113,000 others vandalised.&nbsp;

Bangladesh Prime Minister Sheikh Hasina on Monday criticised a top US lawmaker's proposal to merge Myanmar's restive Rakhine state into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable".

Bangladesh Prime Minister Sheikh Hasina on Monday criticised a top US lawmaker's proposal to merge Myanmar's restive Rakhine state into her country, saying it was an attempt to "start a fire in the region" and the move was "not acceptable". On June 13, the proposal was placed in the US Congress for bringing Rakhine state in Myanmar under Bangladesh since millions of Rohingyas fled the Buddhist-majority country and taken refuge in the neighbouring nation. The proposal was made by Congressman Bradley Sherman, Chairman of the Sub-committee on Asia-Pacific, during a hearing on the State Department`s budget for South Asia. "It is never right to create troubles inside a sovereign country. And the issue they have touched upon is already a burning one. There has not been any peace wherever they have stepped in but instead, it has led to militancy and unrest," Hasina was quoted by bdnews24 as saying while reacting to the proposal. "We are trying to bring peace to this region. But they are trying to start a fire here. This is not acceptable," she said. Underlining that Bangladesh respected Myanmar`s sovereignty, Hasina said that her government would never allow the integration of a territory of one`s country with another. "We have our borders and we are happy with it. We completely disagree with adding another country's territory to ours. We will never take it," she stressed. The Bangladeshi leader advised Sherman to instead urge Myanmar to allow Rohingyas to return to the country and asked the US to initiate an investigation into human rights violations. "Sherman should instead urge Myanmar to take back its citizens. That would be a humanitarian act. And they should also look into all the human rights violations," Hasina said. Hasina, who recently paid a state visit to China, said she held talks with President Xi Jinping and Prime Minister Li Keqiang on Rohingya crisis and informed that Beijing will work on resolving the pressing issue. Over 1.1 million Rohingyas have been forced to take shelter in Bangladesh`s Cox Bazaar after Myanmar`s armed forces while responding to attacks by an armed group, launched a brutal campaign against the community in Rakhine state in 2017. According to a UN report, titled 'Forced Migration of Rohingya: The Untold Experience', around 18,000 Rohingya women and girls were allegedly raped by Myanmar's security forces and over 115,000 Rohingya homes were burned down and 113,000 others vandalised.

Sheikh Hasina slams US lawmaker's proposal to integrate Rakhine with Bangladesh

Five people were arrested during overnight <a href="https://www.wionews.com/world/violent-clashes-as-hong-kong-marks-china-handover-anniversary-232056">clashes in Hong Kong </a>between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating.

The city has been plunged into its worst crisis in recent history following a month of huge marches as well as separate violent confrontations with police involving a minority of hardcore protesters.&nbsp;

The rallies were sparked by a now-suspended law that would have allowed extraditions to mainland <a href="https://www.wionews.com/world/riot-police-baton-charge-protesters-in-hong-kong-233863">China</a>, but have since morphed into a wider movement calling for democratic reforms and a halt to sliding freedoms in the semi-autonomous territory.

Sunday night saw fresh political violence break out in the district of Mongkok as police baton-charged small groups of masked, largely young protesters who were walking along roads and refused to disperse following another massive, peaceful rally earlier in the day.

In a statement issued early Monday morning, police said the group was taking part in an "unlawful assembly" and had been warned that officers would take action.&nbsp;

"Some protesters resisted and police arrested five persons for assaulting a police officer and obstructing a police officer in the execution of duties," the statement said.

Activists hit out at the police tactics, saying the protesters in Mongkok had remained peaceful as they made their way home and that violence was started by a shield wall of riot officers that had blocked the crowd's path.&nbsp;

"HKers joined rally peacefully... against extradition, bill results in being beaten and assaulted by HK Police," democracy activist Joshua Wong wrote in a tweet accompanying pictures of at least two protesters with bleeding head wounds.&nbsp;

"Just another example of excessive force used by the police," he added in another tweet.

Public anger has soared against the city's pro-Beijing leaders and its police force after officers used tear gas and rubber bullets to disperse protesters outside parliament last month.

Since then the chaos has only escalated. Last Monday, anger peaked as hundreds of youth-led demonstrators successfully stormed and trashed the city's parliament.

Those unprecedented scenes -- and renewed huge marches -- have failed to persuade the government, whose sole concession so far has been to suspend the loathed extradition bill.&nbsp;

Protesters are demanding the bill be scrapped entirely, an independent inquiry into police use of tear gas and rubber bullets, amnesty for those arrested, and for the city's unelected leader Carrie Lam to step down.

They have also demanded authorities stop characterizing protesters as "rioters", a definition that carries much steeper jail terms.

Beijing has thrown its full support behind the embattled Lam, calling on Hong Kong police to pursue anyone involved in the parliament storming and other clashes.

Despite repeated requests, police have not released a breakdown of how many people have been detained in the last month of protests.

Five people were arrested during overnight clashes in Hong Kong between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating.

Five people were arrested during overnight clashes in Hong Kong between riot officers and anti-government protesters, police said Monday, as the political violence rocking the international hub shows no sign of abating. The city has been plunged into its worst crisis in recent history following a month of huge marches as well as separate violent confrontations with police involving a minority of hardcore protesters. The rallies were sparked by a now-suspended law that would have allowed extraditions to mainland China, but have since morphed into a wider movement calling for democratic reforms and a halt to sliding freedoms in the semi-autonomous territory. Sunday night saw fresh political violence break out in the district of Mongkok as police baton-charged small groups of masked, largely young protesters who were walking along roads and refused to disperse following another massive, peaceful rally earlier in the day. In a statement issued early Monday morning, police said the group was taking part in an "unlawful assembly" and had been warned that officers would take action. "Some protesters resisted and police arrested five persons for assaulting a police officer and obstructing a police officer in the execution of duties," the statement said. Activists hit out at the police tactics, saying the protesters in Mongkok had remained peaceful as they made their way home and that violence was started by a shield wall of riot officers that had blocked the crowd's path. "HKers joined rally peacefully... against extradition, bill results in being beaten and assaulted by HK Police," democracy activist Joshua Wong wrote in a tweet accompanying pictures of at least two protesters with bleeding head wounds. "Just another example of excessive force used by the police," he added in another tweet. Public anger has soared against the city's pro-Beijing leaders and its police force after officers used tear gas and rubber bullets to disperse protesters outside parliament last month. Since then the chaos has only escalated. Last Monday, anger peaked as hundreds of youth-led demonstrators successfully stormed and trashed the city's parliament. Those unprecedented scenes -- and renewed huge marches -- have failed to persuade the government, whose sole concession so far has been to suspend the loathed extradition bill. Protesters are demanding the bill be scrapped entirely, an independent inquiry into police use of tear gas and rubber bullets, amnesty for those arrested, and for the city's unelected leader Carrie Lam to step down. They have also demanded authorities stop characterizing protesters as "rioters", a definition that carries much steeper jail terms. Beijing has thrown its full support behind the embattled Lam, calling on Hong Kong police to pursue anyone involved in the parliament storming and other clashes. Despite repeated requests, police have not released a breakdown of how many people have been detained in the last month of protests.

Hong Kong police arrest five after night of clashes

China and the rest of the world must co-exist, <a href="https://www.wionews.com/south-asia/china-will-always-stand-by-pakistans-core-interests-chinese-vice-president-221991">Chinese Vice President Wang Qishan</a> said on Monday, in an indirect jab at the <a href="https://www.wionews.com/world/united-states-congress-expands-probe-of-white-house-personal-email-use-232215">United States</a> with which Beijing is currently trying to resolve a bitter trade war.

"China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University.

Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability.

The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied.

Both sides have levelled increasingly severe tariffs on each other's imports.

China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns.

Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up.

The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption.

"Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said.

"Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy.

Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies.

The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May.

Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished.

The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own.

Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion.

"If there is no peaceful, stable international environment, there will be no development to talk of."

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war.

China and the rest of the world must co-exist, Chinese Vice President Wang Qishan said on Monday, in an indirect jab at the United States with which Beijing is currently trying to resolve a bitter trade war. "China's development can't shut out the rest of the world. The world's development can't shut out China," Wang said in an opening address to the World Peace Forum at Beijing's elite Tsinghua University. Wang also warned against "protectionism in the name of national security", without mentioning the United States, and called major powers to make more contributions to global peace and stability. The Trump administration has accused China of engaging in unfair trade practices that discriminate against US firms, forced technology transfers, and intellectual property rights theft, all charges Beijing has denied. Both sides have levelled increasingly severe tariffs on each other's imports. China has also been angered by the US sanctions against Chinese tech giant Huawei Technologies Co Ltd over national security concerns. Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China's commitment to opening up. The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi's fight against deep-rooted corruption. "Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development," he said. "Development is the key to resolving all issues," Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy. Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world's two largest economies. The two sides have been in communication by telephone since last month's G20 summit when US President Donald Trump and Xi agreed to relaunch talks that had stalled in May. Talks between the two sides broke down in May after US officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished. The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and US support of self-ruled Taiwan, claimed by China as its own. Wang said that no matter how the international situation develops or how China develops, it will walk the path of peace, and not seek spheres of influence or expansion. "If there is no peaceful, stable international environment, there will be no development to talk of."

In jab at US, China's vice president Wang Qishan says world cannot shut China out

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after <a href="https://www.wionews.com/world/britains-oil-tanker-seizure-will-not-go-without-a-response-iran-defence-minister-233959">Tehran</a> announced it was <a href="https://www.wionews.com/world/iran-says-it-will-enrich-uranium-at-any-level-challenging-us-233760">set to breach its uranium enrichment</a> cap.

"The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing.

"The <a href="https://www.wionews.com/world/iran-better-be-careful-warns-trump-on-breaching-uranium-enrichment-cap-233859">maximum pressure exerted by the US</a> on Iran is the root cause of the Iranian nuclear crisis," he said.

Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out.&nbsp;

The 2015 deal was reached between Iran and <a href="https://www.wionews.com/world/after-britain-germany-strongly-urges-iran-to-halt-uranium-enrichment-233803">six world powers</a> -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief.

Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession.

Watch: Iran Shifts From Patience to Confrontation

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<a href="https://www.wionews.com/world/un-nuclear-watchdogs-board-to-meet-on-iran-at-request-of-us-233425">Tehran's move to start enriching uranium</a> above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments."

Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.&nbsp;

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap.

China on Monday said "unilateral bullying" by the United States was the cause behind the escalating Iran nuclear crisis, after Tehran announced it was set to breach its uranium enrichment cap. "The facts show that unilateral bullying has already become a worsening tumour," said Chinese foreign ministry spokesman Geng Shuang at a press briefing in Beijing. "The maximum pressure exerted by the US on Iran is the root cause of the Iranian nuclear crisis," he said. Iran threatened on Sunday to abandon more commitments to an endangered 2015 nuclear deal unless a solution is found with the remaining parties after the US pulled out. The 2015 deal was reached between Iran and six world powers -- Britain, China, France, Germany, the United States and Russia -- and saw Tehran agree to drastically scale down its nuclear programme in exchange for sanctions relief. Washington began reimposing sanctions on Iran in August 2018 and has targeted crucial sectors including oil exports and the banking system, fuelling a deep recession. Watch: Iran Shifts From Patience to Confrontation × Tehran's move to start enriching uranium above the maximum purification level has already drawn opposition from countries backing the nuclear deal, with Germany urging it to "stop and reverse all activities inconsistent with its commitments." Geng said China has expressed "regret" for Tehran's decision to reduce its fulfilment of the Iran nuclear deal.

'Bullying' by United States is cause behind escalating Iran nuclear crisis: China

US and Chinese officials are working to <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">schedule a top-level trade talk</a> by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday.

Efforts to pencil in a new round of negotiations come a week after President Donald Trump and Chinese counterpart Xi Jinping met in Japan and agreed to restart their stalled negotiations.

But Beijing this week showed no sign of softening its position, with the Commerce Ministry announcing Thursday that any resolution would require Washington to lift the steep tariffs it imposed on Chinese imports last year.

"I know they're working on coming up with a date for so-called face-to-face meetings. That will happen," top White House economic advisor Larry Kudlow told Fox Business Network on Friday.

"I don't know if that's this coming week. I think the phone calls are this week. The face-to-face may not be for another week, but I don't want to get ahead of that curve," he said.

An official with the US Trade Representative's office confirmed to AFP that efforts are underway to schedule a call between top negotiators for next week.

Meanwhile, The South China Morning Post also reported Friday that talks were due to resume in Beijing next week.

US stocks appeared to react positively to word talks will resume, erasing some of the losses from earlier in the day when a strong jobs report called into doubt a hoped-for cut in interest rates by the Federal Reserve.

Trade talks with Beijing have been stalled since May, when Trump accused Chinese negotiators of reneging on core commitments made over prior months of negotiating.

But at their meeting last week on the sidelines of the Group of 20 summit in Japan, Trump agreed to soften the hardline stance on Chinese telecommunications giant Huawei, a company US officials claim poses a national security threat.

The decision triggered a backlash among lawmakers on Capitol Hill but White House officials said the changes should not create any additional risk to US national security.

The White House also said this week it had no intention of easing a ban on Huawei's participation in the development of 5G wireless networks in the United States.

Beijing and Washington have hit each other with tariffs on $360 billion in two-way trade since last year, rattling markets and weighing on the manufacturing sector while fueling concerns about a weakening global economy.

US and Chinese officials are working to schedule a top-level trade talk by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday.

US and Chinese officials are working to schedule a top-level trade talk by telephone next week but a face-to-face encounter has not been scheduled yet, US officials said Friday. Efforts to pencil in a new round of negotiations come a week after President Donald Trump and Chinese counterpart Xi Jinping met in Japan and agreed to restart their stalled negotiations. But Beijing this week showed no sign of softening its position, with the Commerce Ministry announcing Thursday that any resolution would require Washington to lift the steep tariffs it imposed on Chinese imports last year. "I know they're working on coming up with a date for so-called face-to-face meetings. That will happen," top White House economic advisor Larry Kudlow told Fox Business Network on Friday. "I don't know if that's this coming week. I think the phone calls are this week. The face-to-face may not be for another week, but I don't want to get ahead of that curve," he said. An official with the US Trade Representative's office confirmed to AFP that efforts are underway to schedule a call between top negotiators for next week. Meanwhile, The South China Morning Post also reported Friday that talks were due to resume in Beijing next week. US stocks appeared to react positively to word talks will resume, erasing some of the losses from earlier in the day when a strong jobs report called into doubt a hoped-for cut in interest rates by the Federal Reserve. Trade talks with Beijing have been stalled since May, when Trump accused Chinese negotiators of reneging on core commitments made over prior months of negotiating. But at their meeting last week on the sidelines of the Group of 20 summit in Japan, Trump agreed to soften the hardline stance on Chinese telecommunications giant Huawei, a company US officials claim poses a national security threat. The decision triggered a backlash among lawmakers on Capitol Hill but White House officials said the changes should not create any additional risk to US national security. The White House also said this week it had no intention of easing a ban on Huawei's participation in the development of 5G wireless networks in the United States. Beijing and Washington have hit each other with tariffs on $360 billion in two-way trade since last year, rattling markets and weighing on the manufacturing sector while fueling concerns about a weakening global economy.

US-China trade officials aim to talk next week by telephone

The Chinese commerce ministry said Thursday that <a href="https://www.wionews.com/world/g20-summit-us-china-high-stakes-bilateral-meeting-gets-underway-in-osaka-231356">US tariffs</a> against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP.&nbsp;

Trade teams from the world's top two economies "have maintained communication", the report added quoting ministry spokesman Gao Feng, days after presidents Donald Trump and Xi Jinping announced a truce and committed to revive negotiations&nbsp;on the sidelines of G20 in Osaka, Japan.

"The United States' unilateral tariff increase on China's exports to the United States is the starting point for the&nbsp;Sino-US economic and trade frictions," Gao said at a weekly press briefing.

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"If the two sides can reach an agreement, the tariffs imposed must be completely eliminated. China's attitude toward this is clear and consistent," Gao added.

The countries have exchanged tariffs on $360 billion in two-way trade and <a href="https://www.wionews.com/world/china-us-agree-to-restart-trade-talks-at-xi-trump-meeting-report-231374">negotiations broke down</a> in May after the United States accused China of reneging on its commitments.

The US leader said he would not slap new tariffs on Chinese exports and suggested he could take a softer stance on Chinese telecom giant Huawei, which he has moved to blacklist.&nbsp;

(With inputs from AFP)

The Chinese commerce ministry said Thursday that US tariffs against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP.

The Chinese commerce ministry said Thursday that US tariffs against China must be lifted for the two sides to reach a deal to end the trade war, reported news agency AFP. Trade teams from the world's top two economies "have maintained communication", the report added quoting ministry spokesman Gao Feng, days after presidents Donald Trump and Xi Jinping announced a truce and committed to revive negotiations on the sidelines of G20 in Osaka, Japan. "The United States' unilateral tariff increase on China's exports to the United States is the starting point for the Sino-US economic and trade frictions," Gao said at a weekly press briefing. × "If the two sides can reach an agreement, the tariffs imposed must be completely eliminated. China's attitude toward this is clear and consistent," Gao added. The countries have exchanged tariffs on $360 billion in two-way trade and negotiations broke down in May after the United States accused China of reneging on its commitments. The US leader said he would not slap new tariffs on Chinese exports and suggested he could take a softer stance on Chinese telecom giant Huawei, which he has moved to blacklist. (With inputs from AFP)

China says US tariffs must be lifted to reach a deal to end trade war

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway.

The <a href="https://www.wionews.com/world/us-warship-sails-in-disputed-south-china-sea-amid-trade-tensions-220018">South China Sea</a> is one of a growing number of flashpoints in the <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">US-China relationship</a>, which include a trade war, US sanctions and <a href="https://www.wionews.com/opinions/decoding-report-which-raises-concerns-over-china-attacking-taiwan-190996">Taiwan</a>.

China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs.

A US official, speaking on the condition of anonymity, said China tested multiple anti-ship ballistic missiles over the weekend.

"Of course the Pentagon was aware of the Chinese missile launch from the man-made structures in the South China Sea near the Spratly Islands," Pentagon spokesman Lieutenant Colonel Dave Eastburn said.

"I'm not going to speak on behalf of all the sovereign nations in the region, but I'm sure they agree that the PRC's behaviour is contrary to its claim to want to bring peace to the region and obviously actions like this are coercive acts meant to intimidate other (South China Sea) claimants," Eastburn added. PRC is an acronym for the People's Republic of China.

China has not confirmed the missile tests and on Tuesday the foreign ministry declined to comment, referring questions to the defence ministry, which did not respond to a request for comment.

The Chinese government has said that the military was carrying out drills between the Spratly and Paracel Islands starting last weekend and ending on Wednesday, warning other shipping not to enter a designated area.

China's claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

News of the China missile test was first reported by NBC News.

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway.

The Pentagon said on Tuesday a recent Chinese missile launch in the disputed South China Sea was "disturbing" and contrary to Chinese pledges that it would not militarise the disputed waterway. The South China Sea is one of a growing number of flashpoints in the US-China relationship, which include a trade war, US sanctions and Taiwan. China and the United States have repeatedly traded barbs in the past over what Washington says is Beijing's militarization of the South China Sea by building military installations on artificial islands and reefs. A US official, speaking on the condition of anonymity, said China tested multiple anti-ship ballistic missiles over the weekend. "Of course the Pentagon was aware of the Chinese missile launch from the man-made structures in the South China Sea near the Spratly Islands," Pentagon spokesman Lieutenant Colonel Dave Eastburn said. "I'm not going to speak on behalf of all the sovereign nations in the region, but I'm sure they agree that the PRC's behaviour is contrary to its claim to want to bring peace to the region and obviously actions like this are coercive acts meant to intimidate other (South China Sea) claimants," Eastburn added. PRC is an acronym for the People's Republic of China. China has not confirmed the missile tests and on Tuesday the foreign ministry declined to comment, referring questions to the defence ministry, which did not respond to a request for comment. The Chinese government has said that the military was carrying out drills between the Spratly and Paracel Islands starting last weekend and ending on Wednesday, warning other shipping not to enter a designated area. China's claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam. News of the China missile test was first reported by NBC News.

China's missile test in South China Sea 'disturbing': Pentagon

Several major <a href="https://www.wionews.com/world/us-hits-chinese-firm-sinovel-with-15-mn-fine-for-stealing-technology-149666">US-based technology</a> companies are planning to shift substantial production out of China, spurred by a bitter trade war between <a href="https://www.wionews.com/world/4th-july-celebrations-battle-tanks-arrive-in-washington-trump-promises-incredible-flyovers-biggest-ever-fireworks-232578">Washington</a> and Beijing, the Nikkei reported on Wednesday, citing sources.

Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei.

Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added.

US President Donald Trump and <a href="https://www.wionews.com/world/xi-jinping-heads-to-north-korea-to-meet-kim-jong-un-ahead-of-trump-talks-228852">Chinese President Xi Jinping</a> struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate.

However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country.

In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month.

HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources.

Several major US-based technology companies are planning to shift substantial production out of China, spurred by a bitter trade war between Washington and Beijing, the Nikkei reported on Wednesday, citing sources. Personal computer makers HP Inc and Dell Technologies are planning to reallocate up to 30% of their notebook production out of China, according to the Nikkei. Microsoft Corp, Alphabet Inc, Amazon.com Inc, Sony Corp and Nintendo Co Ltd are also looking at moving some of their game console and smart speaker manufacturing out of the country, the Nikkei added. US President Donald Trump and Chinese President Xi Jinping struck a truce at last weekend's Group of 20 summits in Japan, paving the way for a restart in trade talks after months of stalemate. However, the companies are not likely to alter their plans of moving some of their production out of China as they also face higher operating costs in the country. In June, Apple Inc asked its major suppliers to assess the cost implications of moving 15%-30% of their production capacity from China to Southeast Asia as it prepares for a restructuring of its supply chain, Nikkei had reported last month. HP, Dell, Amazon, Microsoft and Google did not immediately respond to a Reuters' request for comment.

HP, Dell, other tech firms plan to shift production out of China: Nikkei

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by <a href="https://www.wionews.com/world/hong-kong-police-retake-parliament-from-anti-government-protesters-232153">masked protesters who stormed and ransacked the city's legislature</a> in an unprecedented challenge to Beijing's authority.

The semi-autonomous financial hub has been thrown into crisis by weeks of massive demonstrations over a push to pass a bill that would allow extraditions to the Chinese mainland.

But on Monday -- the <a href="https://www.wionews.com/world/violent-clashes-as-hong-kong-marks-china-handover-anniversary-232056">22nd anniversary of the city's handover to China</a> -- anger spilled over as groups of mostly young, hardline protesters, broke into the legislative council.

They hung the city's colonial-era flag in the debating chamber, scrawled messages such as "Hong Kong is not China" and defaced the city's emblematic seal with spray-paint.

Police charged into the building shortly after midnight, firing tear gas and sending plumes of smoke into the air.

The events pose an unparalleled challenge to Chinese leader Xi Jinping, who has so far left Lam to handle the protests.

In a pre-dawn press conference, Lam, the city's Beijing-appointed chief executive, described the scenes of vandalism as "heartbreaking and shocking".

"This is something we should seriously condemn because nothing is more important than the rule of law in Hong Kong," she said, with the city's police chief Stephen Lo by her side.

Lo added, "Protesters' violent acts have far exceeded the bottom line of peaceful expressions of demands."

The financial hub has been rocked by massive protests over the past three weeks as anger against the pro-Beijing government has boiled over.

The rallies -- including a huge pro-democracy march on Monday -- have been largely peaceful while calling for Lam, whose approval ratings are at a record low, to resign.

Watch:&nbsp;Hong Kong Protests -&nbsp;Implications for China

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But they have failed to win many concessions, with Lam resisting calls to permanently shelve the extradition law or step down.

On Monday, some hardline protesters appeared to have reached breaking point, saying they felt compelled to storm parliament because their concerns were going unheard.

"We have marched, staged sit-ins... but the government has remained unmoved," Joey, a 26-year-old protester, told AFP as she walked over shattered glass inside the building.&nbsp;

"We have to show the government that we won't just sit here and do nothing."

The legislature was closed on Tuesday, as police inspected the damage inside the building while workers waited outside to begin a clean-up.

Under the terms of Hong Kong's handover from British to Chinese rule in 1997, the city enjoys rights and liberties unseen on the autocratic mainland. But many residents accuse Beijing of reneging on that deal with the help of unelected leaders.

On Monday, the United States voiced its support for the protesters, with President Donald Trump saying the demonstrators were "looking for democracy".

"Unfortunately, some governments don't want democracy", he added, in a swipe at China.

Britain's Foreign Secretary Jeremy Hunt said his country's support for Hong Kong and "its freedoms is unwavering" and urged restraint from protesters.

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by masked protesters who stormed and ransacked the city's legislature in an unprecedented challenge to Beijing's authority.

Hong Kong's leader on Tuesday condemned "the extreme use of violence" by masked protesters who stormed and ransacked the city's legislature in an unprecedented challenge to Beijing's authority. The semi-autonomous financial hub has been thrown into crisis by weeks of massive demonstrations over a push to pass a bill that would allow extraditions to the Chinese mainland. But on Monday -- the 22nd anniversary of the city's handover to China -- anger spilled over as groups of mostly young, hardline protesters, broke into the legislative council. They hung the city's colonial-era flag in the debating chamber, scrawled messages such as "Hong Kong is not China" and defaced the city's emblematic seal with spray-paint. Police charged into the building shortly after midnight, firing tear gas and sending plumes of smoke into the air. The events pose an unparalleled challenge to Chinese leader Xi Jinping, who has so far left Lam to handle the protests. In a pre-dawn press conference, Lam, the city's Beijing-appointed chief executive, described the scenes of vandalism as "heartbreaking and shocking". "This is something we should seriously condemn because nothing is more important than the rule of law in Hong Kong," she said, with the city's police chief Stephen Lo by her side. Lo added, "Protesters' violent acts have far exceeded the bottom line of peaceful expressions of demands." The financial hub has been rocked by massive protests over the past three weeks as anger against the pro-Beijing government has boiled over. The rallies -- including a huge pro-democracy march on Monday -- have been largely peaceful while calling for Lam, whose approval ratings are at a record low, to resign. Watch: Hong Kong Protests - Implications for China × But they have failed to win many concessions, with Lam resisting calls to permanently shelve the extradition law or step down. On Monday, some hardline protesters appeared to have reached breaking point, saying they felt compelled to storm parliament because their concerns were going unheard. "We have marched, staged sit-ins... but the government has remained unmoved," Joey, a 26-year-old protester, told AFP as she walked over shattered glass inside the building. "We have to show the government that we won't just sit here and do nothing." The legislature was closed on Tuesday, as police inspected the damage inside the building while workers waited outside to begin a clean-up. Under the terms of Hong Kong's handover from British to Chinese rule in 1997, the city enjoys rights and liberties unseen on the autocratic mainland. But many residents accuse Beijing of reneging on that deal with the help of unelected leaders. On Monday, the United States voiced its support for the protesters, with President Donald Trump saying the demonstrators were "looking for democracy". "Unfortunately, some governments don't want democracy", he added, in a swipe at China. Britain's Foreign Secretary Jeremy Hunt said his country's support for Hong Kong and "its freedoms is unwavering" and urged restraint from protesters.

Hong Kong leader Carrie Lam condemns 'extremely violent' protests

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps.

Trump's historic visit to North Korea, where he met leader Kim Jong Un, soothed geopolitical concerns and added to the upbeat mood on trading floors.

After a highly anticipated meeting on the sidelines of the G20 summit Saturday, the US president said negotiations to resolve the standoff between the world's two biggest economies were "back on track" and threatened new levies on Chinese goods would be held off.

Trump also signalled a softer position on Chinese telecom giant Huawei, a major bone of contention in the row, by saying US companies could sell equipment "where there's no great national security problem", White House economic advisor Larry Kudlow said Sunday.

While there had been a quiet sense of optimism the talks would end with an agreement to return to the negotiating table, the apparent concession on Huawei took some by surprise and provided some extra buying support.&nbsp;

The news was much-needed after Trump sparked volatility in early May with his shock decision to hit China with new tariffs and halt talks that had seemed to be nearing a positive end.

'Sigh of relief'

"After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday's events in a reveller tone," said Stephen Innes at Vanguard Markets.

"Indeed, investors heaved a massive, but exhausted, sigh of relief that both the US and China opted to push the reset button and restart trade negotiations amidst other pleasantries -- now we'll have to see whether it all sticks."

Shanghai jumped 2.1 per cent in the morning while the Chinese yuan climbed to its strongest level in almost two months. Soft factory activity data indicated continued weakness in the world's number two economy, though analysts said the readings could press the central People's Bank of China to unveil fresh stimulus measures.

Tokyo ended the morning 1.8 per cent higher, Singapore rallied 1.2 per cent and Taipei was 1.5 per cent higher, with Sydney, Seoul, Wellington and Manila also higher. Hong Kong was closed for a public holiday.

Oil prices were also on a roll, with both main contracts jumping more than two per cent as the Trump-Xi agreement came with news that Russia and OPEC cartel kingpin Saudi Arabia had agreed at the G20 to extend a deal to limit output.

Innes added that "even with some long-term uncertainty on US-China trade leaking into the equation, I think medium-term risks to oil prices remained skewed to the upside, as Middle East tension continues to percolate, and we anticipate more easing from the PBoC. Both positives for oil prices".

The optimistic tone hit demand for safe-haven gold, which sank below $1,400.

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps.

Asian markets surged Monday after Donald Trump and Xi Jinping agreed to restart trade talks, reviving hopes of an end to their tariffs war, while oil prices also rallied on news that Saudi Arabia and Russia will extend their output caps. Trump's historic visit to North Korea, where he met leader Kim Jong Un, soothed geopolitical concerns and added to the upbeat mood on trading floors. After a highly anticipated meeting on the sidelines of the G20 summit Saturday, the US president said negotiations to resolve the standoff between the world's two biggest economies were "back on track" and threatened new levies on Chinese goods would be held off. Trump also signalled a softer position on Chinese telecom giant Huawei, a major bone of contention in the row, by saying US companies could sell equipment "where there's no great national security problem", White House economic advisor Larry Kudlow said Sunday. While there had been a quiet sense of optimism the talks would end with an agreement to return to the negotiating table, the apparent concession on Huawei took some by surprise and provided some extra buying support. The news was much-needed after Trump sparked volatility in early May with his shock decision to hit China with new tariffs and halt talks that had seemed to be nearing a positive end. 'Sigh of relief' "After spending the better part of two months in trade war purgatory and with G20 done and dusted, risk markets have responded to Saturday's events in a reveller tone," said Stephen Innes at Vanguard Markets. "Indeed, investors heaved a massive, but exhausted, sigh of relief that both the US and China opted to push the reset button and restart trade negotiations amidst other pleasantries -- now we'll have to see whether it all sticks." Shanghai jumped 2.1 per cent in the morning while the Chinese yuan climbed to its strongest level in almost two months. Soft factory activity data indicated continued weakness in the world's number two economy, though analysts said the readings could press the central People's Bank of China to unveil fresh stimulus measures. Tokyo ended the morning 1.8 per cent higher, Singapore rallied 1.2 per cent and Taipei was 1.5 per cent higher, with Sydney, Seoul, Wellington and Manila also higher. Hong Kong was closed for a public holiday. Oil prices were also on a roll, with both main contracts jumping more than two per cent as the Trump-Xi agreement came with news that Russia and OPEC cartel kingpin Saudi Arabia had agreed at the G20 to extend a deal to limit output. Innes added that "even with some long-term uncertainty on US-China trade leaking into the equation, I think medium-term risks to oil prices remained skewed to the upside, as Middle East tension continues to percolate, and we anticipate more easing from the PBoC. Both positives for oil prices". The optimistic tone hit demand for safe-haven gold, which sank below $1,400.

Asian markets surge on Trump-Xi breakthrough, oil rallies

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as <a href="https://www.wionews.com/world/us-china-report-progress-in-beijing-trade-talks-206635">Beijing</a> moved to fulfil its promise to open major industries.

The loosening in curbs, though widely anticipated, comes after the United States and <a href="https://www.wionews.com/business-economy/us-recession-risk-rises-as-us-china-trade-tensions-heat-up-report-219279">China</a> agreed on the weekend to restart trade talks with <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">US President Donald Trump</a> offering concessions on tariffs and an easing of restrictions on tech company Huawei.

The National Development and Reform Commission (NDRC) said it has eased foreign investment curbs on sectors including petroleum and gas exploration and widened access to agriculture, mining and manufacturing.

NDRC published on its website the new, shorter so-called negative list that sets out industries where foreign investment is limited or prohibited.

The number of sectors and subsectors on the negative list was cut to 40 from 48 in the previous version, which was published in June last year. The new list takes effect on July 30.

The NDRC document said domestic shipping agencies, gas and heat pipelines in cities with more than 500,000 people, cinemas and performance agencies no longer needed to be controlled by Chinese entities. It also widened access to petroleum and gas exploration, agriculture and some metals resources exploration.

China has repeatedly promised to further open its markets to foreign investment but has stressed such decisions would be based on the economy's own needs and not due to external pressure.

It shortened the negative list last year, easing curbs on sectors including banking, the automotive and heavy industries, while also allowing 100% foreign ownership in some industries where ownership caps previously applied.

Foreign investment in China was previously assessed on a case-by-case basis with approval granted by the local branch of the commerce ministry. Under the negative list system, only investments in industries specified in the list are prohibited or subject to review.

Despite the reforms of recent years, foreign businesses say progress has been slow with foreign investment in many industries still restricted while fresh promises of greater access do little more than repeat earlier pledges.

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as Beijing moved to fulfil its promise to open major industries.

China's state planning agency on Sunday said it has cut the number of sectors subject to foreign investment restrictions, as Beijing moved to fulfil its promise to open major industries. The loosening in curbs, though widely anticipated, comes after the United States and China agreed on the weekend to restart trade talks with US President Donald Trump offering concessions on tariffs and an easing of restrictions on tech company Huawei. The National Development and Reform Commission (NDRC) said it has eased foreign investment curbs on sectors including petroleum and gas exploration and widened access to agriculture, mining and manufacturing. NDRC published on its website the new, shorter so-called negative list that sets out industries where foreign investment is limited or prohibited. The number of sectors and subsectors on the negative list was cut to 40 from 48 in the previous version, which was published in June last year. The new list takes effect on July 30. The NDRC document said domestic shipping agencies, gas and heat pipelines in cities with more than 500,000 people, cinemas and performance agencies no longer needed to be controlled by Chinese entities. It also widened access to petroleum and gas exploration, agriculture and some metals resources exploration. China has repeatedly promised to further open its markets to foreign investment but has stressed such decisions would be based on the economy's own needs and not due to external pressure. It shortened the negative list last year, easing curbs on sectors including banking, the automotive and heavy industries, while also allowing 100% foreign ownership in some industries where ownership caps previously applied. Foreign investment in China was previously assessed on a case-by-case basis with approval granted by the local branch of the commerce ministry. Under the negative list system, only investments in industries specified in the list are prohibited or subject to review. Despite the reforms of recent years, foreign businesses say progress has been slow with foreign investment in many industries still restricted while fresh promises of greater access do little more than repeat earlier pledges.

China eases foreign investment curbs amid cooling trade tensions

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