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

Bangkok grapple with shortage of masks as smog smothers city

The Thai government is trying to resolve a dangerous air pollution problem in Bangkok, by seeding clouds to produce rain and using water cannons to clean streets and the air. After spending several days choking on high levels of fine particle dust, many Bangkok residents have opted for masks to protect themselves. But some were unable to find the N95-grade face masks required and are calling for the authorities to cover the shortage. Meanwhile, an online poll conducted by The Standard online magazine among 2,200 residents on Monday (Jan 14) and Tuesday revealed that 50.3 per cent wore masks to protect themselves, while the remainder complained they could not find one.


By The Nation (Thailand)
January 17, 2019

Economics

South Korean defense paper doesn’t label north an enemy

Ministry also says the north has specialized battalion for assassination of key figures. The Defense Ministry does not directly refer to North Korea as an enemy and takes a less hostile tone toward the communist state in its 23rd white paper published Tuesday. The ministry’s latest biennial white paper — the first to be published since the Moon Jae-in administration came to power in 2017 — addresses security threats, military policies and the regional security environment. Perhaps most notably, the Defense Ministry eliminated the phrase specifically describing North Korea as South Korea’s “enemy,” a move that appears to reflect


By The Korea Herald
January 16, 2019

Economics

Huawei to end employment of staff arrested in Poland for spying

Huawei has been accused by countries of spying for Chinese government. Huawei announced on Saturday evening that it would terminate employment of Wang Weijing, who was detained in Poland on suspicion of spying, CCTV reported. Wang’s alleged actions have no relation to the company, according to Huawei. “In accordance with the terms and conditions of Huawei’s labor contract, we have made this decision because the incident in question has brought Huawei into disrepute,” said Huawei. “Huawei complies with all applicable laws and regulations in the countries where it operates, and we require every employee to abide by the laws and regulations in the countries where they are based,” said Huawei.


By China Daily
January 14, 2019

Economics

Talks calm trade climate for Beijing, Washington

For the trade war, more talks means less tension. The latest round of vice-ministerial level trade talks between China and the United States, which concluded on Wednesday, have laid a foundation for addressing each other’s concerns, the Ministry of Commerce said on Thursday. Both sides have actively implemented the significant consensus reached by their heads of state and conducted extensive, in-depth and detailed exchanges on trade and structural issues of common concern, Gao Feng, the ministry’s spokesman, said at a news briefing on Thursday. The meetings between China and the US began on Monday in Beijing. According to a statement released by the ministry on Thursday morning, the two sides improved mutual understanding. Both sides agreed to continue to keep in close contact, the statement said. On Dec 1, the top leaders of China and the US met on the sidelines of the


By China Daily
January 11, 2019

Economics

Korea seizes Japanese companies asset over wartime forced labor

Japan has summoned Seoul’s ambassador in protest. The seizure of Korean assets of Japanese steelmaker Nippon Steel & Sumitomo Metal over Japan’s wartime use of South Korean forced labor went into effect Wednesday, prompting the Japanese government to summon South Korean ambassador to Tokyo in protest. The Daegu District Court’s Pohang branch approved the seizure last week, as the firm has refused to follow the Oct. 30 ruling by the top court here to compensate four South Koreans forced into labor during Japan’s 1910-45 occupation of the Korean Peninsula. The assets of Nippon Steel have been frozen as the company received the documents ordering the seizure. Japan’s Vice Foreign Minister Takeo Akiba summoned South Korean ambassador to Tokyo, Lee Su-hoon, on Wednesday in protest and expressed regret over the decision. After the 10-minute talks with Akiba, Lee told reporters


By The Korea Herald
January 10, 2019

Economics

Pakistan seals financial assistance from UAE

$3 billion financial assistance sealed as Abu Dhabi Crown Prince meets Imran Khan in Islamabad. Pakistani and United Arab Emirates leadership have met thrice now in three months. Prime Minister Imran Khan visited the UAE twice after assuming office in August to seek economic assistance. Both countries last week finalised the terms and conditions of a $6.2 billion support package for Islamabad to help address its balance-of-payments crisis. A joint statement issued after the UAE royal’s visit said Prime Minister Khan thanked the crown prince for the “generous” balance-of-payments support of $3 billion, which appears to have materialised first out of the total financial package. Crown Prince Sheikh Mohammed bin Zayed, who last visited


By Dawn
January 7, 2019