External Affairs Minister S Jaishankar will visit Bejing this month to prepare for the second informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping in India later this year.

Jaishankar is the first Indian minister to visit China after the Narendra Modi government came to power for a second consecutive term.

Jaishankar is expected to hold a wide range of talks with his Chinese counterpart Wang Yi to finalise XI Jinping's visit to India. According to reports, they would also address the 4th India-China Media Summit Forum on August 12.

Modi and Xi had met in Wuhan in April, 2018 for their first informal summit in order to deepen bilateral cooperation.

The External Affairs Minister is currently in Thailand to attend a host of engagements. Earlier on Friday, he participated at the 9th East Asia Summit Foreign Ministers' Meeting (EAS FMM). 
 
On Thursday, Jaishankar addressed ASEAN-India Ministerial Meeting and Mekong Ganga Cooperation (MGC) Ministerial Meeting and met 10 of his counterparts.&nbsp;

Talking about connectivity, he said, "India seeks greater connect with the ASEAN region. We envision connectivity within the region in very broad terms including physical, economic and political and close contact at people to people level."

"The historic, cultural, economic political that have existed between India and ASEAN region are the stepping stones to achieve the vision of a more connected India and ASEAN region and a closer partnership," he added.

(With inputs from agencies) 
&nbsp;

External Affairs Minister S Jaishankar will visit Bejing this month to prepare for the second informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping in India later this year.

External Affairs Minister S Jaishankar will visit Bejing this month to prepare for the second informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping in India later this year. Jaishankar is the first Indian minister to visit China after the Narendra Modi government came to power for a second consecutive term. Jaishankar is expected to hold a wide range of talks with his Chinese counterpart Wang Yi to finalise XI Jinping's visit to India. According to reports, they would also address the 4th India-China Media Summit Forum on August 12. Modi and Xi had met in Wuhan in April, 2018 for their first informal summit in order to deepen bilateral cooperation. The External Affairs Minister is currently in Thailand to attend a host of engagements. Earlier on Friday, he participated at the 9th East Asia Summit Foreign Ministers' Meeting (EAS FMM). On Thursday, Jaishankar addressed ASEAN-India Ministerial Meeting and Mekong Ganga Cooperation (MGC) Ministerial Meeting and met 10 of his counterparts. Talking about connectivity, he said, "India seeks greater connect with the ASEAN region. We envision connectivity within the region in very broad terms including physical, economic and political and close contact at people to people level." "The historic, cultural, economic political that have existed between India and ASEAN region are the stepping stones to achieve the vision of a more connected India and ASEAN region and a closer partnership," he added. (With inputs from agencies)

S Jaishankar to visit Beijing to prepare for PM Narendra Modi-Xi Jinping second informal summit

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose <a href="https://www.wionews.com/world/us-to-hit-300-billion-worth-of-chinese-goods-with-10-tariff-donald-trump-240021">tariffs on $300 billion</a> in Chinese goods in an escalation of their trade war.

The commerce ministry said in a statement that President Donald Trump's move to impose the new tariffs on September 1 was a "serious violation" of a truce that was reached with Chinese leader Xi Jinping in June.

It did not specify what kind of countermeasures it would take, but in the past China has hinted that it could restrict exports of rare earths that are vital to the US technology industry, and it is also drawing up a blacklist of "unreliable" foreign companies.

Earlier, China's foreign minister had said tariffs were "not a constructive" way to solve the US trade war after President Donald Trump threatened to hit $300 billion worth of Chinese goods with new duties.

"Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it's not the correct way," Wang Yi said on the sidelines of a meeting of Southeast Asia's top diplomats in Bangkok, according to footage broadcast on a Chinese television station.

US President Donald Trump had announced on Thursday he will hit China with punitive tariffs on another $300 billion in goods, prompting Beijing to warn it was the wrong way to resolve the trade war.

The sudden deterioration meant the world's two largest economies have now erected trade barriers covering virtually all of their $660 billion in annual trade in merchandise - confirming economists' fears and sending shudders through Wall Street.

The 10 per cent duties will take effect September 1, and come on top of the 25 per cent tariffs on $250 billion in imports already in place.

He later raised the possibility he could increase the duties further.

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose tariffs on $300 billion in Chinese goods in an escalation of their trade war.

China warned on Friday it will take "countermeasures" if the United States follows through on its threat to impose tariffs on $300 billion in Chinese goods in an escalation of their trade war. The commerce ministry said in a statement that President Donald Trump's move to impose the new tariffs on September 1 was a "serious violation" of a truce that was reached with Chinese leader Xi Jinping in June. It did not specify what kind of countermeasures it would take, but in the past China has hinted that it could restrict exports of rare earths that are vital to the US technology industry, and it is also drawing up a blacklist of "unreliable" foreign companies. Earlier, China's foreign minister had said tariffs were "not a constructive" way to solve the US trade war after President Donald Trump threatened to hit $300 billion worth of Chinese goods with new duties. "Slapping on tariffs is definitely not a constructive way to resolve economic and trade frictions, it's not the correct way," Wang Yi said on the sidelines of a meeting of Southeast Asia's top diplomats in Bangkok, according to footage broadcast on a Chinese television station. US President Donald Trump had announced on Thursday he will hit China with punitive tariffs on another $300 billion in goods, prompting Beijing to warn it was the wrong way to resolve the trade war. The sudden deterioration meant the world's two largest economies have now erected trade barriers covering virtually all of their $660 billion in annual trade in merchandise - confirming economists' fears and sending shudders through Wall Street. The 10 per cent duties will take effect September 1, and come on top of the 25 per cent tariffs on $250 billion in imports already in place. He later raised the possibility he could increase the duties further.

US tariffs serious violation, will take countermeasures: China

China and Russia are as much allies as they are rivals.

A joint Tajik-Chinese military exercise in a Tajik region bordering on China’s troubled north-western region of Xinjiang suggests that increased Chinese-Russian military cooperation has not eroded gradually mounting rivalry in Central Asia, long viewed by Moscow as its backyard.

The exercise, the second in three years, coupled with the building by China of border guard posts and a training centre as well as the creation of a Chinese security facility along the 1,300 kilometre long Tajik Afghan Border, Chinese dominance of the Tajik economy, and the hand over of &nbsp;Tajik territory almost two decades ago, challenges Russian-Chinese arrangements in the region.

The informal arrangement involved a division of labour under which China would expand economically in Central Asia while Russia would guarantee the region’s security.

The exercise comes days after China and Russia operated their first joint air patrol and months after Tajik and Russian forces exercised jointly.

The “exercise represents a next step in China’s overall encroachment upon Russia’s self-proclaimed ‘sphere of influence’ in Central Asia,” said Russia expert Stephen Blank.

“Moscow has given remarkably little consideration to the possibility that China will build on its soft power in Central Asia to establish security relationships or even bases and thus accelerate the decline of Russian influence there,” added Eurasia scholar Paul Goble.

The perceived encroachment is but the latest sign that Russia is seeking to balance its determination to ally itself with China in trying to limit US power with the fact the Chinese and Russian interests may be diverging.

The limitations of Russian-Chinese cooperation have long been evident.

China, for example, has refrained from recognising Russian-inspired declarations of independence in 2008 of two regions of Georgia, Abkhazia and South Ossetia that recently sparked anti-government protests in Tbilisi.

China similarly abstained in a 2014 United Nations Security Council vote on a resolution that condemned Russia’s annexation of Crimea.

Meanwhile, Chinese dependence on Russian military technology is diminishing, potentially threatening a key Russian export market. China in 2017 rolled out its fifth-generation Chengdu J-20 fighter that is believed to be technologically superior to Russia SU-57E.

Perhaps most fundamentally, Chinese president Xi Jinping opted in 2013 to unveil his Belt and Road initiative in the Kazakh capital of Astana rather than Moscow.

By doing so and by so far refusing to invest in railroads and roads that would turn Russia into a transportation hub, Xi effectively relegated Russia to the status of second fiddle, at least as far as the Belt and Road’s core transportation infrastructure pillar is concerned.

China’s recently published latest defence white paper nonetheless praised the continued development of a “high level” military relationship with Russia that is “enriching the China-Russia comprehensive strategic partnership of coordination for a new era and playing a significant role in maintaining global strategic stability.”

In a bid to ensure Russia remains a key player on the international stage and exploit mounting tension in the Gulf, Russian deputy foreign minister and special representative to the Middle East and Africa Mikhail Bogdanov this week proposed a collective security concept that would replace the Gulf’s US defence umbrella and position Russia as a power broker alongside the United States.

The concept would entail the creation of a “counter-terrorism coalition of all stakeholders” that would be the motor for resolution of conflicts across the region and promote mutual security guarantees. It would involve the removal of the “permanent deployment of troops of extra-regional states in the territories of states of the Gulf,” a reference to US, British and French forces and bases.

Bogdanov’s proposal called for a “universal and comprehensive” security system that would take into account “the interests of all regional and other parties involved, in all spheres of security, including its military, economic and energy dimensions” and ensure the provision of humanitarian assistance.

The coalition to include the Gulf states, Russia, China, the US, the European Union and India as well as other stakeholders, a likely reference to Iran, would be launched at an international conference on security and cooperation in the Gulf.

It was not clear how feuding Gulf states like Qatar, Saudi Arabia, the United Arb Emirates and Iran would be persuaded to sit at one table. The proposal suggested that Russia’s advantage was that it maintained good relations with all parties.

“Russia’s contributions to the fight against &nbsp;Islamic terrorist networks and the liberation of parts of Syria and Iraq can be regarded as a kind of test for the role of sheriff in a Greater Eurasia” that would include the Middle East, said political scientist Dmitry Yefremenko.

Putin this week asserted himself as sheriff by signalling his support for embattled former Kyrgyz president Almazbek Atambayev, a Putin crony who has been charged with corruption. Following a meeting in Moscow, Putin urged Atembayev’s nemesis. President Sooronbai Jeenbekov, not to press charges.

At the same time, Putin, building on his visit to Kyrgyzstan in March, offered &nbsp;Jeenbekov a carrot.

Kyrgyzstan “needs political stability. Everybody needs to unite around the current president and to help him develop the state. We have many plans for cooperation with Kyrgyzstan and we are absolutely determined to work together with the current leadership to fulfill these plans,” Putin said.

Russia and Kyrgyzstan signed an agreement during the visit to expand by 60 hectares the Kant Air Base 20 kilometres east of the capital Bishkek that is used by the Russian Air Force and increase the rent Russia pays.

Putin further lavished his Kyrgyz hosts with $6 billion in deals ranging from power, mineral resources and hydrocarbons to industry and agriculture.

Putin also allocated $200 million for the upgrading of customs infrastructure and border equipment to put an end to the back-up of dozens of trucks on the Kazakh-Kyrgyz border because Kyrgyzstan has so far been unable to comply with the technical requirements of the Russia-led Eurasian Economic Union (EEU).

Uzbek president Shavkat Mirziyaev last month gave the EEU, that groups Russia, Kazakhstan, Kyrgyzstan Belarus, and Armenia, &nbsp;a boost by declaring that Uzbekistan would need to join the trade bloc to ensure access to its export markets.

EEU members account for 70 percent of Uzbek exports.

Said Russia and Eurasia scholar Paul Stronski: “China’s deft diplomacy towards Russia — along with both states’ desires to keep the West out of their common backyard — has kept tensions behind closed doors. But with China now recognising it may need to strengthen its security posture in the region, it is unclear how long this stability will last.” 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

China and Russia are as much allies as they are rivals. A joint Tajik-Chinese military exercise in a Tajik region bordering on China’s troubled north-western region of Xinjiang suggests that increased Chinese-Russian military cooperation has not eroded gradually mounting rivalry in Central Asia, long viewed by Moscow as its backyard.

China and Russia are as much allies as they are rivals. A joint Tajik-Chinese military exercise in a Tajik region bordering on China’s troubled north-western region of Xinjiang suggests that increased Chinese-Russian military cooperation has not eroded gradually mounting rivalry in Central Asia, long viewed by Moscow as its backyard. The exercise, the second in three years, coupled with the building by China of border guard posts and a training centre as well as the creation of a Chinese security facility along the 1,300 kilometre long Tajik Afghan Border, Chinese dominance of the Tajik economy, and the hand over of Tajik territory almost two decades ago, challenges Russian-Chinese arrangements in the region. The informal arrangement involved a division of labour under which China would expand economically in Central Asia while Russia would guarantee the region’s security. The exercise comes days after China and Russia operated their first joint air patrol and months after Tajik and Russian forces exercised jointly. The “exercise represents a next step in China’s overall encroachment upon Russia’s self-proclaimed ‘sphere of influence’ in Central Asia,” said Russia expert Stephen Blank. “Moscow has given remarkably little consideration to the possibility that China will build on its soft power in Central Asia to establish security relationships or even bases and thus accelerate the decline of Russian influence there,” added Eurasia scholar Paul Goble. The perceived encroachment is but the latest sign that Russia is seeking to balance its determination to ally itself with China in trying to limit US power with the fact the Chinese and Russian interests may be diverging. The limitations of Russian-Chinese cooperation have long been evident. China, for example, has refrained from recognising Russian-inspired declarations of independence in 2008 of two regions of Georgia, Abkhazia and South Ossetia that recently sparked anti-government protests in Tbilisi. China similarly abstained in a 2014 United Nations Security Council vote on a resolution that condemned Russia’s annexation of Crimea. Meanwhile, Chinese dependence on Russian military technology is diminishing, potentially threatening a key Russian export market. China in 2017 rolled out its fifth-generation Chengdu J-20 fighter that is believed to be technologically superior to Russia SU-57E. Perhaps most fundamentally, Chinese president Xi Jinping opted in 2013 to unveil his Belt and Road initiative in the Kazakh capital of Astana rather than Moscow. By doing so and by so far refusing to invest in railroads and roads that would turn Russia into a transportation hub, Xi effectively relegated Russia to the status of second fiddle, at least as far as the Belt and Road’s core transportation infrastructure pillar is concerned. China’s recently published latest defence white paper nonetheless praised the continued development of a “high level” military relationship with Russia that is “enriching the China-Russia comprehensive strategic partnership of coordination for a new era and playing a significant role in maintaining global strategic stability.” In a bid to ensure Russia remains a key player on the international stage and exploit mounting tension in the Gulf, Russian deputy foreign minister and special representative to the Middle East and Africa Mikhail Bogdanov this week proposed a collective security concept that would replace the Gulf’s US defence umbrella and position Russia as a power broker alongside the United States. The concept would entail the creation of a “counter-terrorism coalition of all stakeholders” that would be the motor for resolution of conflicts across the region and promote mutual security guarantees. It would involve the removal of the “permanent deployment of troops of extra-regional states in the territories of states of the Gulf,” a reference to US, British and French forces and bases. Bogdanov’s proposal called for a “universal and comprehensive” security system that would take into account “the interests of all regional and other parties involved, in all spheres of security, including its military, economic and energy dimensions” and ensure the provision of humanitarian assistance. The coalition to include the Gulf states, Russia, China, the US, the European Union and India as well as other stakeholders, a likely reference to Iran, would be launched at an international conference on security and cooperation in the Gulf. It was not clear how feuding Gulf states like Qatar, Saudi Arabia, the United Arb Emirates and Iran would be persuaded to sit at one table. The proposal suggested that Russia’s advantage was that it maintained good relations with all parties. “Russia’s contributions to the fight against Islamic terrorist networks and the liberation of parts of Syria and Iraq can be regarded as a kind of test for the role of sheriff in a Greater Eurasia” that would include the Middle East, said political scientist Dmitry Yefremenko. Putin this week asserted himself as sheriff by signalling his support for embattled former Kyrgyz president Almazbek Atambayev, a Putin crony who has been charged with corruption. Following a meeting in Moscow, Putin urged Atembayev’s nemesis. President Sooronbai Jeenbekov, not to press charges. At the same time, Putin, building on his visit to Kyrgyzstan in March, offered Jeenbekov a carrot. Kyrgyzstan “needs political stability. Everybody needs to unite around the current president and to help him develop the state. We have many plans for cooperation with Kyrgyzstan and we are absolutely determined to work together with the current leadership to fulfill these plans,” Putin said. Russia and Kyrgyzstan signed an agreement during the visit to expand by 60 hectares the Kant Air Base 20 kilometres east of the capital Bishkek that is used by the Russian Air Force and increase the rent Russia pays. Putin further lavished his Kyrgyz hosts with $6 billion in deals ranging from power, mineral resources and hydrocarbons to industry and agriculture. Putin also allocated $200 million for the upgrading of customs infrastructure and border equipment to put an end to the back-up of dozens of trucks on the Kazakh-Kyrgyz border because Kyrgyzstan has so far been unable to comply with the technical requirements of the Russia-led Eurasian Economic Union (EEU). Uzbek president Shavkat Mirziyaev last month gave the EEU, that groups Russia, Kazakhstan, Kyrgyzstan Belarus, and Armenia, a boost by declaring that Uzbekistan would need to join the trade bloc to ensure access to its export markets. EEU members account for 70 percent of Uzbek exports. Said Russia and Eurasia scholar Paul Stronski: “China’s deft diplomacy towards Russia — along with both states’ desires to keep the West out of their common backyard — has kept tensions behind closed doors. But with China now recognising it may need to strengthen its security posture in the region, it is unclear how long this stability will last.” (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Shifting Sands: Chinese encroachment in Central Asia and challenges to US supremacy in Gulf

As The Protests In Hong Kong Continue For The Third Month, Here's A Look At How The Protests Is Likely To Impact Xi Jinping. The Hong Kong Protests could be the Waterloo for Xi Jinping. Is this the biggest challenge in his political career? Will Hong Kong protests turn out to be the worst Xi Jinping has faced in his career? Here's a report

Gravitas: Is Hong Kong Xi Jinping's biggest political challenge yet?

Australia's government on Tuesday ordered an inquiry into allegations that police, customs and immigration officials illegally smoothed the way for a prominent casino group to attract Chinese high rollers.

Crown casinos have been in the spotlight since Sunday when a series of media reports alleged it used junket operators with links to Asian triad gangs, that drug traffickers laundered money through the company, and that government employees gave special treatment to wealthy Chinese gamblers.

Attorney-General Christian Porter said on Tuesday he had referred the allegations raised by the Nine News investigation to the Australian Commission for Law Enforcement Integrity.

"It's my view that there are sufficient concerns raised at least to warrant further investigations," he told the Australian parliament.

Officials are accused of waving Chinese VIP gamblers through customs, issuing fast-track visas to high rollers and moonlighting for a VIP visitor to the casino.

Independent MP Andrew Wilkie told parliament that in one instance some gamblers stepped off a plane and travelled directly to the casino, stopping only to pick up a sex worker en route.

The high rollers who are alleged to have visited the casino on junkets from China include Ming Chai - the cousin of Chinese President Xi Jinping.

Chinese foreign ministry spokeswoman Hua Chunying rejected the allegations against Ming.

"I don't know where these media outlets dig out these rumours from to make such groundless accusations," Hua said at a regular briefing.

"These sensational claims are an attempt to discredit China. I think such tactics are despicable."

Porter stressed that beyond the media reports he did not have "any other obvious evidence otherwise available that supports allegations against law enforcement, immigration or customs authorities".

The commission would now decide whether or not to launch a full investigation, Porter said.

Crown said it would work with any investigation and denied wrongdoing.

"Crown absolutely rejects allegations of illegality made in Parliament today and in recent media reporting. We believe these allegations are ill-informed and an attempt to smear the company," a statement said.

The Department of Home Affairs told AFP it has a series of arrangements with large international organisations to quickly process short-stay visas.

Such an agreement existed with Crown between 2003 and 2016.

The department said there was "no reduced vetting in certain locations or for certain applicants" and there was "no discretion" to waive legislative requirements for such visas.

Crown has casinos in Melbourne and Perth and is building another in Sydney.

Australia's government on Tuesday ordered an inquiry into allegations that police, customs and immigration officials illegally smoothed the way for a prominent casino group to attract Chinese high rollers.

Australia's government on Tuesday ordered an inquiry into allegations that police, customs and immigration officials illegally smoothed the way for a prominent casino group to attract Chinese high rollers. Crown casinos have been in the spotlight since Sunday when a series of media reports alleged it used junket operators with links to Asian triad gangs, that drug traffickers laundered money through the company, and that government employees gave special treatment to wealthy Chinese gamblers. Attorney-General Christian Porter said on Tuesday he had referred the allegations raised by the Nine News investigation to the Australian Commission for Law Enforcement Integrity. "It's my view that there are sufficient concerns raised at least to warrant further investigations," he told the Australian parliament. Officials are accused of waving Chinese VIP gamblers through customs, issuing fast-track visas to high rollers and moonlighting for a VIP visitor to the casino. Independent MP Andrew Wilkie told parliament that in one instance some gamblers stepped off a plane and travelled directly to the casino, stopping only to pick up a sex worker en route. The high rollers who are alleged to have visited the casino on junkets from China include Ming Chai - the cousin of Chinese President Xi Jinping. Chinese foreign ministry spokeswoman Hua Chunying rejected the allegations against Ming. "I don't know where these media outlets dig out these rumours from to make such groundless accusations," Hua said at a regular briefing. "These sensational claims are an attempt to discredit China. I think such tactics are despicable." Porter stressed that beyond the media reports he did not have "any other obvious evidence otherwise available that supports allegations against law enforcement, immigration or customs authorities". The commission would now decide whether or not to launch a full investigation, Porter said. Crown said it would work with any investigation and denied wrongdoing. "Crown absolutely rejects allegations of illegality made in Parliament today and in recent media reporting. We believe these allegations are ill-informed and an attempt to smear the company," a statement said. The Department of Home Affairs told AFP it has a series of arrangements with large international organisations to quickly process short-stay visas. Such an agreement existed with Crown between 2003 and 2016. The department said there was "no reduced vetting in certain locations or for certain applicants" and there was "no discretion" to waive legislative requirements for such visas. Crown has casinos in Melbourne and Perth and is building another in Sydney.

Australia orders probe into treatment of Chinese high rollers

US negotiators arrived in Shanghai on Tuesday to resurrect trade talks with Chinese officials, with both sides downplaying expectations of an imminent deal between the world's two biggest economies.

The negotiations in the financial hub will be the first face-to-face discussions since <a href="https://www.wionews.com/world/donald-trump-defends-attack-on-african-american-us-lawmaker-elijah-cummings-239036">US President Donald Trump</a> agreed to a truce with <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> at June's G20 summit after previous talks broke down over the US accusations that China reneged on its commitments.

Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade, in a tense stand-off centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies.

<a href="https://www.wionews.com/world/us-trade-negotiators-will-travel-to-china-in-very-near-future-official-235396">US Trade Representative Robert Lighthizer </a>and Treasury Secretary Steven Mnuchin arrived in Shanghai on Tuesday, a source close to the talks told AFP.

Vice Premier Liu He will likely lead the talks for China again, with the two sides expected to meet later Tuesday ahead of a full day of talks on Wednesday.

The negotiations come as Beijing faces heavy pressure over ongoing civil unrest in <a href="https://www.wionews.com/world/hong-kong-police-retake-parliament-from-anti-government-protesters-232153">Hong Kong</a>, and with lingering ill-feeling between the US and China.

Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization prompting an irritable reply from Beijing about the "arrogance and selfishness" of the US.

Trump said Friday he believed Chinese negotiators were hoping to delay a deal until after the US presidential election next year, adding: "When I win... they're all going to sign deals."

The US leader has also angered the Chinese side by claiming the slowing economy is forcing them to make a trade deal, and blacklisting telecom giant Huawei over national security concerns.

In a commentary on Tuesday, state news agency Xinhua admitted relations were "strained" and called for the US to "treat China with due respect if it wants a trade deal".

New city

But the kick-starting of trade negotiations are still being seen as positive even if little of substance is expected following a truce agreed between Trump and Chinese President Xi Jinping at the G20 in June.

"Realistically, this round of talks is about clarifying where the two sides stand after a significant lull in engagement," said Jake Parker, senior vice president at the US-China Business Council.&nbsp;

"There also needs to be a focus on rebuilding the trust that was present in April but has since dissipated."

Holding talks in Shanghai is also a nod to a time of better relations, as the city was the home of the 1972 Shanghai Communique -- an important step in building diplomatic relations between the US and China.

Chinese Commerce Minister Zhong Shan, who is seen as a tough negotiator, is expected to join Liu on the Chinese side.

"Minister Zhong Shan, like Liu He, is a 19th Party Congress Central Committee member, so his involvement would indicate an elevation of participation on the Chinese side," said Parker.

"His appointment could offer another senior voice... on the Chinese side."

'Lot of issues'&nbsp;

But both sides were busy lowering expectations in the run-up to talks.&nbsp;

Mnuchin told CNBC last week there were still "a lot of issues" while Chinese state-run daily The Global Times wrote that it is "widely believed that trade talks will take a long time".

There was no sign of the rhetoric letting up either, with the China Daily newspaper's Tuesday editorial saying "the US should give its go-to tactic of maximum pressure a couple of days off as it has proven ineffective against China".

It pointed to an announcement at the weekend that China would buy more US agricultural products including pork, cotton, and soybean as a sign of China's "goodwill" and called for the US to "reciprocate if it wants any progress to be made".

There are likely to be "modest soft-pedalled concessions", said Stephen Innes, managing partner at Vanguard Markets Singapore, such as a pause of further tariff increases on Chinese exports to the US.

"Following another month of escalating tensions, agreement on practically anything will be a positive," said Innes.

US negotiators arrived in Shanghai on Tuesday to resurrect trade talks with Chinese officials, with both sides downplaying expectations of an imminent deal between the world's two biggest economies.

US negotiators arrived in Shanghai on Tuesday to resurrect trade talks with Chinese officials, with both sides downplaying expectations of an imminent deal between the world's two biggest economies. The negotiations in the financial hub will be the first face-to-face discussions since US President Donald Trump agreed to a truce with Chinese President Xi Jinping at June's G20 summit after previous talks broke down over the US accusations that China reneged on its commitments. Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade, in a tense stand-off centred on demands for China to curb the alleged theft of American technology and provide a level playing field to US companies. US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Shanghai on Tuesday, a source close to the talks told AFP. Vice Premier Liu He will likely lead the talks for China again, with the two sides expected to meet later Tuesday ahead of a full day of talks on Wednesday. The negotiations come as Beijing faces heavy pressure over ongoing civil unrest in Hong Kong, and with lingering ill-feeling between the US and China. Days before the Shanghai meeting, Trump threatened to pull recognition of China's developing nation status at the World Trade Organization prompting an irritable reply from Beijing about the "arrogance and selfishness" of the US. Trump said Friday he believed Chinese negotiators were hoping to delay a deal until after the US presidential election next year, adding: "When I win... they're all going to sign deals." The US leader has also angered the Chinese side by claiming the slowing economy is forcing them to make a trade deal, and blacklisting telecom giant Huawei over national security concerns. In a commentary on Tuesday, state news agency Xinhua admitted relations were "strained" and called for the US to "treat China with due respect if it wants a trade deal". New city But the kick-starting of trade negotiations are still being seen as positive even if little of substance is expected following a truce agreed between Trump and Chinese President Xi Jinping at the G20 in June. "Realistically, this round of talks is about clarifying where the two sides stand after a significant lull in engagement," said Jake Parker, senior vice president at the US-China Business Council. "There also needs to be a focus on rebuilding the trust that was present in April but has since dissipated." Holding talks in Shanghai is also a nod to a time of better relations, as the city was the home of the 1972 Shanghai Communique -- an important step in building diplomatic relations between the US and China. Chinese Commerce Minister Zhong Shan, who is seen as a tough negotiator, is expected to join Liu on the Chinese side. "Minister Zhong Shan, like Liu He, is a 19th Party Congress Central Committee member, so his involvement would indicate an elevation of participation on the Chinese side," said Parker. "His appointment could offer another senior voice... on the Chinese side." 'Lot of issues' But both sides were busy lowering expectations in the run-up to talks. Mnuchin told CNBC last week there were still "a lot of issues" while Chinese state-run daily The Global Times wrote that it is "widely believed that trade talks will take a long time". There was no sign of the rhetoric letting up either, with the China Daily newspaper's Tuesday editorial saying "the US should give its go-to tactic of maximum pressure a couple of days off as it has proven ineffective against China". It pointed to an announcement at the weekend that China would buy more US agricultural products including pork, cotton, and soybean as a sign of China's "goodwill" and called for the US to "reciprocate if it wants any progress to be made". There are likely to be "modest soft-pedalled concessions", said Stephen Innes, managing partner at Vanguard Markets Singapore, such as a pause of further tariff increases on Chinese exports to the US. "Following another month of escalating tensions, agreement on practically anything will be a positive," said Innes.

China-US trade talks to restart after G20 tariff truce

<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/china-holds-military-drills-in-south-china-sea-near-taiwan-239171&amp;sa=U&amp;ved=2ahUKEwjkkK368tnjAhUILY8KHV3tDhEQFjABegQIDhAC&amp;usg=AOvVaw3JHpgc5k_Tdzp3p1-Ziuse">China</a>'s first "cyber-dissident", whose website reported on sensitive topics including human rights, was sentenced to 12 years in prison Monday for leaking state secrets, a court said.

Huang Qi ran a website called "64 Tianwang" - named after the bloody June 4, 1989 crackdown on Tiananmen Square pro-democracy protesters.

His sentence is one of the harshest meted out to a dissident since President <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/millions-of-tonnes-of-us-soy-shipped-to-china-state-media-on-trade-consensus-239095&amp;sa=U&amp;ved=2ahUKEwirp9aS89njAhXFMo8KHbonDuMQFjAAegQIBRAC&amp;usg=AOvVaw1AH370xchrXMqeadmyFVV-">Xi Jinping</a> came to power in 2012, according to court records.

Huang was guilty of "leaking national state secrets and providing state secrets to foreign entities", the statement by the Mianyang Intermediate People's Court said, adding that Huang will be deprived of political rights for four years.

His website, which reported on local corruption, human rights violations, and other topics rarely seen in ordinary Chinese media, is blocked on the mainland.

The website was awarded a Reporters Without Borders prize in November 2016. A few weeks later, Huang was detained in his hometown of Chengdu, according to Amnesty International.

Huang's work has repeatedly drawn the ire of Chinese authorities.

In 2009, he was sentenced to three years in prison after campaigning for parents of children killed in the 2008 Sichuan earthquake, which left nearly 87,000 people dead or missing and authorities facing huge public anger over shoddy building construction.

Five years later Huang and at least three citizen journalists who contribute to 64 Tianwang were detained by police after the site reported on a woman who set herself on fire in Tiananmen Square.

China's first "cyber-dissident", whose website reported on sensitive topics including human rights, was sentenced to 12 years in prison Monday for leaking state secrets, a court said.

China's first "cyber-dissident", whose website reported on sensitive topics including human rights, was sentenced to 12 years in prison Monday for leaking state secrets, a court said. Huang Qi ran a website called "64 Tianwang" - named after the bloody June 4, 1989 crackdown on Tiananmen Square pro-democracy protesters. His sentence is one of the harshest meted out to a dissident since President Xi Jinping came to power in 2012, according to court records. Huang was guilty of "leaking national state secrets and providing state secrets to foreign entities", the statement by the Mianyang Intermediate People's Court said, adding that Huang will be deprived of political rights for four years. His website, which reported on local corruption, human rights violations, and other topics rarely seen in ordinary Chinese media, is blocked on the mainland. The website was awarded a Reporters Without Borders prize in November 2016. A few weeks later, Huang was detained in his hometown of Chengdu, according to Amnesty International. Huang's work has repeatedly drawn the ire of Chinese authorities. In 2009, he was sentenced to three years in prison after campaigning for parents of children killed in the 2008 Sichuan earthquake, which left nearly 87,000 people dead or missing and authorities facing huge public anger over shoddy building construction. Five years later Huang and at least three citizen journalists who contribute to 64 Tianwang were detained by police after the site reported on a woman who set herself on fire in Tiananmen Square.

Huang Qi, China's first 'cyber-dissident', given 12-year jail term

<a href="https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526">US trade negotiators return to China</a> this week for a fresh round of talks in a new city, but experts warn a change of air is unlikely to quickly solve an impasse between the world's two biggest economies.

The meetings in Shanghai on Tuesday and Wednesday will be the first face-to-face discussions since negotiations collapsed in May after President Donald Trump accused China of reneging on its commitments.

Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade in the tense stand-off.

Despite an agreement by <a href="https://www.wionews.com/americas/donald-trump-xi-jinping-and-trade-a-high-stakes-game-of-chicken-216697">Trump and President Xi Jinping at the G20</a> in Japan to cease hostilities, there has been little progress since and the US leader has irritated the Chinese side by claiming the slowing economy is forcing them to make a trade deal.

The dispute has centred on US demands for China to curb the alleged theft of American technology and provide a level-playing field to US companies in the Asian country.

Trump has also angered China by blacklisting telecom giant Huawei over national security concerns.

"China tried to take this as a purely economic affair and just wants to make a deal, but on the US side, it seems ... (they) try to connect the trade affairs with a strategic rivalry," Wang Chuanxing, professor at Tongji University, told AFP.

"The common ground is that both of the sides want to strike a deal, so this is very important."

Symbolic venue&nbsp;

The re-starting of talks is seen as a positive step, and the change of location to the country's leading city of commerce Shanghai is also suggestive.

"It could be an attempt to distance the consequences of the negotiations from Xi Jinping and the people immediately around him," said Michael Pettis, a finance professor at the Guanghua School of Management at Peking University.

Holding talks in Shanghai is also a nod to a time of better relations, as the home of the 1972 Shanghai Communique an important step in building diplomatic relations between the US and China.

"There's a significance to (China) of the Shanghai Communique and the symbolism obviously of that important agreement," US Treasury Secretary Steven Mnuchin told CNBC, adding that he would take the invite to Shanghai as "good news that we will be making progress next week".

However, Mnuchin, who will be joined by US trade representative Robert Lighthizer in Shanghai, warned there were "a lot of issues" and he expected follow-up talks in the US.

"It's not likely (they will sign a deal) this week," said Shanghai-based professor Shen Dingli.

The Global Times, a state-run nationalist daily, said in an editorial on Friday that it is "widely believed that trade talks will take a long time" and the chance of getting a deal could be missed if Washington continues to put pressure on Beijing.

Further lowering expectations was Larry Kudlow, director of the US National Economic Council, who told CNBC on Friday that he "wouldn't expect any grand deal."

"Talking to our negotiators, I think they're going to reset the stage and hopefully go back to where the talks left off last May," he said, adding that the two sides still need to address key structural issues such as intellectual property theft and forced transfers of technology.

New places, new faces

As well as a fresh location, the new round of trade talks seem set to give a more prominent role to the Chinese Commerce Minister Zhong Shan.

While Vice Premier Liu He will likely lead the talks for China again, the addition of Zhong could change the tone of the discussions as he is seen as a hardliner.

"On the one hand maybe in his speeches he might express something tough," Wang said.

"But on the other hand, we can also think that China is making more efforts to strike a deal because Zhong Shan is a man with much expertise in this area."

There is also a suggestion that Beijing is deliberately delaying the process until the next US election, in the hope of finding a more conciliatory leader to deal with.

It will be tougher for Xi to push reforms following US criticism of Beijing's human rights record and an open letter signed by retired US military officials urging Trump to maintain a hard line against Communist China, said Larry Ong, senior analyst with political risk consultancy SinoInsider.

"Xi's rivals and other (Communist) Party hardliners will seize on the aforementioned developments as proof that the US wants to defeat the CCP in a Cold War-style conflict, not reach a 'win-win' trade agreement and revert the Sino-US relationship to the engagement era," Ong said.

US trade negotiators return to China this week for a fresh round of talks in a new city, but experts warn a change of air is unlikely to quickly solve an impasse between the world's two biggest economies.

US trade negotiators return to China this week for a fresh round of talks in a new city, but experts warn a change of air is unlikely to quickly solve an impasse between the world's two biggest economies. The meetings in Shanghai on Tuesday and Wednesday will be the first face-to-face discussions since negotiations collapsed in May after President Donald Trump accused China of reneging on its commitments. Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade in the tense stand-off. Despite an agreement by Trump and President Xi Jinping at the G20 in Japan to cease hostilities, there has been little progress since and the US leader has irritated the Chinese side by claiming the slowing economy is forcing them to make a trade deal. The dispute has centred on US demands for China to curb the alleged theft of American technology and provide a level-playing field to US companies in the Asian country. Trump has also angered China by blacklisting telecom giant Huawei over national security concerns. "China tried to take this as a purely economic affair and just wants to make a deal, but on the US side, it seems ... (they) try to connect the trade affairs with a strategic rivalry," Wang Chuanxing, professor at Tongji University, told AFP. "The common ground is that both of the sides want to strike a deal, so this is very important." Symbolic venue The re-starting of talks is seen as a positive step, and the change of location to the country's leading city of commerce Shanghai is also suggestive. "It could be an attempt to distance the consequences of the negotiations from Xi Jinping and the people immediately around him," said Michael Pettis, a finance professor at the Guanghua School of Management at Peking University. Holding talks in Shanghai is also a nod to a time of better relations, as the home of the 1972 Shanghai Communique an important step in building diplomatic relations between the US and China. "There's a significance to (China) of the Shanghai Communique and the symbolism obviously of that important agreement," US Treasury Secretary Steven Mnuchin told CNBC, adding that he would take the invite to Shanghai as "good news that we will be making progress next week". However, Mnuchin, who will be joined by US trade representative Robert Lighthizer in Shanghai, warned there were "a lot of issues" and he expected follow-up talks in the US. "It's not likely (they will sign a deal) this week," said Shanghai-based professor Shen Dingli. The Global Times, a state-run nationalist daily, said in an editorial on Friday that it is "widely believed that trade talks will take a long time" and the chance of getting a deal could be missed if Washington continues to put pressure on Beijing. Further lowering expectations was Larry Kudlow, director of the US National Economic Council, who told CNBC on Friday that he "wouldn't expect any grand deal." "Talking to our negotiators, I think they're going to reset the stage and hopefully go back to where the talks left off last May," he said, adding that the two sides still need to address key structural issues such as intellectual property theft and forced transfers of technology. New places, new faces As well as a fresh location, the new round of trade talks seem set to give a more prominent role to the Chinese Commerce Minister Zhong Shan. While Vice Premier Liu He will likely lead the talks for China again, the addition of Zhong could change the tone of the discussions as he is seen as a hardliner. "On the one hand maybe in his speeches he might express something tough," Wang said. "But on the other hand, we can also think that China is making more efforts to strike a deal because Zhong Shan is a man with much expertise in this area." There is also a suggestion that Beijing is deliberately delaying the process until the next US election, in the hope of finding a more conciliatory leader to deal with. It will be tougher for Xi to push reforms following US criticism of Beijing's human rights record and an open letter signed by retired US military officials urging Trump to maintain a hard line against Communist China, said Larry Ong, senior analyst with political risk consultancy SinoInsider. "Xi's rivals and other (Communist) Party hardliners will seize on the aforementioned developments as proof that the US wants to defeat the CCP in a Cold War-style conflict, not reach a 'win-win' trade agreement and revert the Sino-US relationship to the engagement era," Ong said.

Cautious hopes before new round of US-China trade talks

Several hundred protesters calling for democracy and some chanting "free Hong Kong" converged on the Chinese-ruled city's airport on Friday as neighbouring Singapore advised its citizens to avoid parts of the territory.

Airport authorities said operations wouldn't be affected, but advised passengers to arrive early given the risk of disruption.

The former British colony of Hong Kong, which returned to China in 1997, is embroiled in its worst political crisis for decades after two months of increasingly <a href="https://www.wionews.com/world/chinese-official-urged-hong-kong-villagers-to-drive-off-protesters-before-violence-at-train-station-238563">violent protests that have posed</a> one of the gravest populist challenges to China's leader Xi Jinping since he took office.

The demonstrations, mushrooming up almost daily, saw the defacement of China's main representative office last weekend, triggering warnings from Beijing this was an attack on China's sovereignty.

What started as an angry response to a now-suspended extradition bill, which would have allowed defendants to be sent to the mainland for trial, now includes demands for greater democracy, the resignation of Hong Kong’s chief executive, Carrie Lam, and even keeping mainland Chinese tourists out of Hong Kong.

Some protesters, dressed in helmets and seated on the ground of the arrivals hall, held up signs calling on the government to withdraw the extradition bill completely, while chants of "Free Hong Kong" reverberated around the building.

"The world has been watching us in the past few weeks," said Jeremy Tam, a former pilot and lawmaker who helped organise the protest with other aviation sector employees.

"We simply believe that the airport is the most direct way for all tourists to explain what is happening in Hong Kong."

Singapore urged its citizens in a travel advisory on Friday to avoid parts of Hong Kong where protests may be taking place, noting the airport demonstration.

Watch:&nbsp;Anti-government protests intensify in Hong Kong

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-hong-kong-anti-government-protests-intensify-237788/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"If you are already in Hong Kong, you should take all necessary precautions to ensure your personal safety," it read.

"Protests which are meant to be peaceful may still have the potential to turn violent with little or no notice."

Some protesters handed out flyers explaining the city's crisis to tourists.

Others condemned the failure of police to protect citizens and protesters from a frenzied attack by armed men at a train station last Sunday that shocked the city. Police sources say some of these men had triad backgrounds.

Members of the public, tourists and pilots, flight attendants and other aviation workers signed a petition urging the Hong Kong government to prosecute the attackers.

The Flight Attendants' Union for Hong Kong's main carrier Cathay Pacific had earlier urged its members to "stand up for our human rights and be connected with the rest of the HongKongers" on its Facebook page.

"United Hong Kong Stands!" it added.

An investment banker at a US bank told Reuters he had rescheduled his flight from Hong Kong to Beijing to another day, over concerns flights possibly being grounded should the protest escalate. 
&nbsp;

Several hundred protesters calling for democracy and some chanting "free Hong Kong" converged on the Chinese-ruled city's airport on Friday as neighbouring Singapore advised its citizens to avoid parts of the territory.

Several hundred protesters calling for democracy and some chanting "free Hong Kong" converged on the Chinese-ruled city's airport on Friday as neighbouring Singapore advised its citizens to avoid parts of the territory. Airport authorities said operations wouldn't be affected, but advised passengers to arrive early given the risk of disruption. The former British colony of Hong Kong, which returned to China in 1997, is embroiled in its worst political crisis for decades after two months of increasingly violent protests that have posed one of the gravest populist challenges to China's leader Xi Jinping since he took office. The demonstrations, mushrooming up almost daily, saw the defacement of China's main representative office last weekend, triggering warnings from Beijing this was an attack on China's sovereignty. What started as an angry response to a now-suspended extradition bill, which would have allowed defendants to be sent to the mainland for trial, now includes demands for greater democracy, the resignation of Hong Kong’s chief executive, Carrie Lam, and even keeping mainland Chinese tourists out of Hong Kong. Some protesters, dressed in helmets and seated on the ground of the arrivals hall, held up signs calling on the government to withdraw the extradition bill completely, while chants of "Free Hong Kong" reverberated around the building. "The world has been watching us in the past few weeks," said Jeremy Tam, a former pilot and lawmaker who helped organise the protest with other aviation sector employees. "We simply believe that the airport is the most direct way for all tourists to explain what is happening in Hong Kong." Singapore urged its citizens in a travel advisory on Friday to avoid parts of Hong Kong where protests may be taking place, noting the airport demonstration. Watch: Anti-government protests intensify in Hong Kong "If you are already in Hong Kong, you should take all necessary precautions to ensure your personal safety," it read. "Protests which are meant to be peaceful may still have the potential to turn violent with little or no notice." Some protesters handed out flyers explaining the city's crisis to tourists. Others condemned the failure of police to protect citizens and protesters from a frenzied attack by armed men at a train station last Sunday that shocked the city. Police sources say some of these men had triad backgrounds. Members of the public, tourists and pilots, flight attendants and other aviation workers signed a petition urging the Hong Kong government to prosecute the attackers. The Flight Attendants' Union for Hong Kong's main carrier Cathay Pacific had earlier urged its members to "stand up for our human rights and be connected with the rest of the HongKongers" on its Facebook page. "United Hong Kong Stands!" it added. An investment banker at a US bank told Reuters he had rescheduled his flight from Hong Kong to Beijing to another day, over concerns flights possibly being grounded should the protest escalate.

Hundred of protesters chanting 'free Hong Kong' converge on the Chinese-ruled city's airport

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

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