See More on Facebook

Economics, Opinion, Politics

US should not shun global trade system

China still upholds using talks to resolve the trade dispute, so it is to be hoped that Trump will hold fire.


Written by

Updated: June 15, 2018

China’s central bank surprised expectations by leaving borrowing costs for interbank loans unchanged on Thursday despite the US Federal Reserve raising benchmark interest rates, a decision that has sparked fresh concerns about the state of the Chinese economy.

It had been expected that the People’s Bank of China would raise borrowing costs after the Fed raised benchmark interest rates on Wednesday to reduce the risks of potential capital outflows.

Such voices of doom have been heard each time the Fed has raised rates before, and each time they have proved to be false cries of alarm, since China’s policymakers have factored in the Fed’s rate hikes into their outlooks.

The slower growth in China’s industrial output, investment and retail sales is because the country is persevering with its deleveraging, crackdown on polluting enterprises and advancing the necessary transition from quantity to quality.

And despite the slowdown, the dividends provided by a more open and consumption-driven Chinese economy continue to prove attractive for global investors, an attraction that will only grow now that China’s leaders have announced new substantial moves to significantly open the Chinese economy further to global investors.

But the Fed’s plan to accelerate the pace of interest rate hikes with two more this year and four next year will exacerbate the global uncertainties that have already been sparked by the economic and trade stance adopted by the United States.

With US President Donald Trump due to meet with his top trade advisers to make a decision on Friday regarding the proposed tariffs on billions of dollars worth of goods from China, there are fears that the trade war between the world’s two largest economies, which has been looming on the horizon for the past few months, may be unavoidable. China has pledged any tariffs will nullify any agreements reached in their recent talks, and it will retaliate in kind against the list of US imports it has drawn up.

China still upholds using talks to resolve the trade dispute, as a Foreign Ministry spokesman said on Thursday, so it is to be hoped that Trump will hold fire to give the ongoing talks time to work out a solution.

At the same time, it is high time that China and other major economies joined hands to better cope with the challenges created by the US’ aggressive pursuit of trade advantages. Greater policy coordination is needed to minimize the ramifications of the US policies and ease the global financial fluctuations, to which some emerging market economies are already falling victim.



Enjoyed this story? Share it.


China Daily
About the Author: China Daily covers domestic and world news through nine print editions and digital media worldwide.

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, Opinion, Politics

N. Korea says it sent ultimatum to S. Korea over Mount Kumgang project

Mount Kumgang is a joint economic venture. North Korea sent an ultimatum to South Korea earlier this week that it will unilaterally remove the South-built facilities from its Mount Kumgang resort unless Seoul tears them down on its own, Pyongyang’s official news agency reported Friday. The North’s tough stance suggests little room for inter-Korean negotiations that South Korea has sought in an effort to keep the long-suspended tour project that was considered one of the most tangible symbols of inter-Korean reconciliation and cooperation. North Korean leader Kim Jong-un (Yonhap) “We sent an ultimatum on Nov. 11 that i


By The Korea Herald
November 15, 2019

Economics, Opinion, Politics

Let Kashmir breathe

It is the 100 day anniversary of India’s moves in Kashmir. IT is a grim milestone. Tuesday marked the 100th day of the siege of India-held Kashmir, after New Delhi clamped down on the region and did away with its special status guaranteed by the Indian constitution. Read: Occupied Kashmir marks 100 days of annexation Since then, life has become a nightmare for the Kashmiris, as they have been living under constant lockdown, their routines disrupted by the heavy hand of the Indian establishment. The matter was raised during a Senate session in Islamabad on Tuesday, with lawmakers questioning the UN’s relative silence where the suffering of Kashmiris is concerned. Former Senate chairman Farooq Naek urged the government to approach the International Court of Justice over the matter, while


By Dawn
November 15, 2019

Economics, Opinion, Politics

Hong Kong dismisses curfew rumours

Hong Kongers on edge amid reports of evacuation of students from the mainland. Even as the Hong Kong government dismissed intense speculation that curfew would be imposed in the city over the weekend amid mounting unrest, Chinese President Xi Jinping yesterday made clear that ending violence and restoring order was the “most urgent task for Hong Kong”. Speaking at the Brics Summit in Brazil’s capital Brasilia yesterday, Mr Xi said: “The Chinese government’s determination to safeguard national sovereignty, security and development interests is unshakeable. The Chinese government’s determination to implement the ‘one country, two systems’ principle and oppose the interference of any outside forces in Hong Kong affairs is firm and unshakeable.” The growing unrest has crippled the city over the past four days, with 


By The Straits Times
November 15, 2019

Economics, Opinion, Politics

China, India doing ‘absolutely nothing’ to clean up

Garbage they drop in sea floats into Los Angeles: Donald Trump. US President Donald Trump at the Economic Club of New York on Tuesday, has said countries like China, India and Russia are doing “absolutely nothing” to clean up their smokestacks and industrial plants and the garbage that they drop in sea floats into Los Angeles. Trump also claimed that he considers himself to be, “in many ways, an environmentalist, believe it or not”. US president said that climate change is a “very complex issue.” “So…I’m very much into climate. But I want the cleanest air on the planet and I want to have – I have to have clean air – water,” Mr Trump said in remarks at the Economic Club of New York. Trump while addressing the audience said that the US withdrew from the “one-sided, horrible, horrible, economically unfair, ”close your businesses down within three


By The Statesman
November 14, 2019

Economics, Opinion, Politics

Continued chaos on Hong Kong roads due to strikes

All schools shut on Thursday to protect students. Hong Kong on Wednesday (Nov 13) faced a third straight day of traffic chaos as protesters continued their strike,  obstructing roads and fighting pitched battles with police across the city as schools cancelled classes. The Education Bureau announced that all schools including kindergarten, primary and secondary as well as special schools will suspend lessons on Thursday (Nov 14) out of safety concerns. The Hong Kong Association of the Heads of Secondary Schools has asked the Education Bureau to suspend school on Friday as well. “In some schools situated under the impact of confrontational events, teachers and students had their lessons amidst the tear gas,


By The Straits Times
November 14, 2019

Economics, Opinion, Politics

Trump again cites questionable numbers related to Korea trade deal

Trump has used the trade deal to bolster his credentials back home. US President Donald Trump again cited questionable numbers on Tuesday as he touted his administration’s renegotiated free trade agreement with South Korea. Trump told the Economic Club of New York that the revised FTA, which took effect early this year, doubled the number of American cars that can be sold in South Korea under US standards and extended American tariffs on Korean pickup trucks by another 20 years to 2041. He then took a swipe at the previous administration of Barack Obama, which negotiated the original agreement. “The deal from the previous admini


By The Korea Herald
November 13, 2019