See More on Facebook

Economics

China–US trade standoff heats up again

Is the United States and China’s on-again, off-again trade war on-again.


Written by

Updated: June 15, 2018

The seemingly endless trade standoff between the US and China looks set to continue as US President Donald Trump has given approval on tariffs on Chinese goods amounting to over $50 billion.

The newest tariffs will come despite grumblings in the US market that Trump’s brinkmanship on trade has negatively impacted US industries.

On Thursday, US Soybean futures fell over 9 cents amid renewed trade tensions. July corn was 11 cents lower at 3.65 US dollars per bushel as of 1540 GMT, July wheat was 17.25 cents lower at 4.9925 dollars, July soybean was down 9 cents at 9.27 dollars.

The decline in soybean futures has been less than the grains overnight as traders await the decision from US President Donald Trump on Chinese trade tariffs, a decision that could be made as early as Friday morning US time.

Warnings

The IMF have released a statement warning the US over its protectionism saying that it would leave “losers on both sides.”

Tariffs from the United States have already prompted reciprocal measures from China, Canada and Mexico with the European Union unanimously approving reciprocal tariffs this week.

“The clouds on the horizon that we have signaled about six months ago are getting darker by the day- and, I was going to say, by the weekend,” said Christine Lagarde, the IMF Managing Director.

“The biggest and darkest cloud that we see is the deterioration that is prompted by the attempt to challenge the way in which trade is being conducted, in which relationships have been handled, and the way in which multilateral organizations have been operating.”

Pushback

Despite warnings from the IMF and the EU, the United States has pushed back on the precautionary words. A statement released from the United States Treasury Department said, in response to the IMF, that the US “differ significantly on the medium and long-term projections.”

“The Treasury Department believes that our policies, including the productivity-boosting mix of tax reform and regulatory relief, will result in more sustainable economic growth,” the statement said.

Trump also was bullish at and after the recent G7 meetings when he, alongside National Security Advisor John Bolton and Secretary of the Treasury Steven Mnuchin, refused to budge on their financial and trade policies.

Trump’s public spat with Justin Trudeau underlined the disagreements.

Chinese Reaction

In an editorial in China’s State Run (and ANN partner) China Daily, arguments were put forth that the US’ multilateralism is costing the superpower its credibility.

“Trump’s reckless decisions and actions have created serious problems for the rest of the world and are pushing the US toward isolation,” said the editorial.

“Does [the United States] still enjoy the international community’s respect despite its exceptional economic and military might? This question gained even more importance after the administration of US President Donald Trump decided to impose additional tariffs on $50 billion (42 billion euros; £37 billion) worth of Chinese imports (as well as imports from other economies) in spite of the deals reached between Chinese and US negotiators in mid-May.”

But while strong words have been said within the Chinese media, the government has made it clear that its willing to engage with the United States on trade issues.

Ministry of Commerce spokesman Gao Feng revealed that while there had been no bilateral talks between the two sides on trade disputes, the US did follow WTO procedures to open a dialogue following China’s petition that US trade practices violated WTO rules.



Enjoyed this story? Share it.


Cod Satrusayang
About the Author: Cod Satrusayang is the Managing Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

South Korea pulls out of intel-sharing pact amid spat with Japan

Seoul cites ‘grave change’ in security cooperation conditions attributable to Japan’s export restrictions for abolishing GSOMIA. South Korea decided to withdraw from the bilateral military intelligence-sharing pact with Japan on Thursday, amid escalating friction over trade and historical issues. In a televised announcement, Cheong Wa Dae said it has made the decision to abolish General Security of Military Information Agreement and will notify Japan via diplomatic channels by midnight on Saturday, the deadline for a decision on whether to renew the agreement. “The government deemed that Japan caused grave change in the bilate


By The Korea Herald
August 23, 2019

Economics

West Papua and its troubled history with Indonesia

Recent riots and protests are just symptoms of long simmering ethnic tensions. Protests have broken out in the Indonesian province of West Papua with a local parliament being set alight and buildings torched in Sorong, the province’s largest city. The protests, involving hundreds of people, occurred throughout the province on Wednesday with buildings set on fire, including a prison where 250 inmates escaped, and rocks and projectiles thrown at security forces. The protests erupted, in part, because of the detention of ethnic Papuan students in the Indonesian city of Surabaya over accusations that they had desecrated the Indonesian flag on its national day. But long running ethnic tensions between the native West Papuans and the Indonesian central government have plagued the province since it was incorporated into Indonesia in the 1960s. A colonial legacy After the


By Cod Satrusayang
August 23, 2019

Economics

South Korea urges region to embrace multilateralism, free trade

Wide gap remains after bilateral meeting of Kang and Kono. The foreign ministers of South Korea and Japan remained at odds in their bilateral meeting held in China on Wednesday, reiterating their respective stances on Tokyo’s wartime forced labor and trade curbs. Foreign Minister Kang Kyung-wha and her Japanese counterpart, Taro Kono, met for 35 minutes on the sidelines of a trilateral meeting with their Chinese counterpart, Wang Yi, in Gubei Water Town near the Great Wall in northern Beijing. “Kang strongly urged Kono to retract the country’s decision to remove South Korea from its “whitelist” of countries with fast-track trade status u


By The Korea Herald
August 22, 2019

Economics

China to impose sanctions on US firms over Taiwan arms sales

The US have approved the sale of F16 fighter jets to Taiwan. China on Wednesday urged the United States to immediately cancel the planned arms sales to Taiwan, saying China will take all necessary measures to defend its own interests including imposing sanctions on US companies involved in the planned sales. The US Defense Department on Wednesday officially notified the US Congress of the plan to sell 66 F-16 fighters and relevant equipment worth around US$8 billion to Taiwan and to provide support. “China firmly opposes the plan and has lodged solemn representations and protests to the US side,” Foreign Ministry spokesman Geng Shuang told a press briefing. ALSO READ: 


By China Daily
August 22, 2019

Economics

Seoul reviews military intel-sharing pact with Japan

Koreans divided on GSOMIA as the deadline for renewal emerges on Saturday. Nearly six decades have passed since South Korea and Japan signed a treaty to normalize diplomatic ties in 1965, but their relationship has been fraught since then with continued bitterness over the history of Korea’s colonization. Now, as the relationship of the “frenemies” hits a new low with a budding trade war, Seoul has hinted at scrapping a military intel-sharing pact with Tokyo. But while South Koreans are unified in denouncing Japan’s increased controls on exports to South Korea, opinions are split over whether it is appropriate to use the military informati


By The Korea Herald
August 21, 2019

Economics

Ho Chi Minh attracts nearly 4 billion USD in investment in 2019

Manufacturing and textiles among key sectors. HCM City attracted about US$3.63 billion of foreign direct investment (FDI) capital in the first seven months of this year, marking a year-on-year increase of 15.2 per cent, according to the municipal People’s Committee. Nearly $688.8 million came from 678 newly registered projects, up 26.9 per cent in value and 18.3 per cent in the number of projects from the same period last year. In the period, 2,668 foreign investors bought shares and acquired stakes of domestic enterprises with total registered capital of $2.6 billion, 28.3 per cent and 16.7 per cent higher respectively than in the same period last year. Meanwhile, HCM City granted business licences to 24,529 new domestic enterprises worth more than VND396 trillion ($17 billion), up 0.9 per cent and 25.7 per cent, respectively. Up to 71,874 existing enterprises were allowed to add a c


By Viet Nam News
August 20, 2019