China to cut import tariffs on wide range of products


September 30, 2018

BEIJING (Reuters) – China will cut import tariffs on textile products and metals, including steel products, to 8.4 percent from 11.5 percent, effective Nov. 1, the finance ministry said on Sunday.

Beijing has pledged to take steps to increase imports this year amid rising tension with some of its biggest trade partners, such as the United States.

Earlier in July, China reduced import tariffs on a range of consumer items including apparel, cosmetics, home appliances, and fitness products to fulfil pledges to further open China’s consumer market.

Import tariffs on wood and paper products, minerals and gemstones will be cut to 5.4 percent from 6.6 percent, the ministry also said in its statement.

Average import tariffs on over fifteen hundred products will be lowered to 7.8 percent from 10.5 percent, the ministry said.

“Reducing tariffs is conducive to promoting the balanced development of foreign trade and promoting a higher level of opening up to the outside world,” the ministry said .

China’s cabinet has announced plans to cut tariffs on machinery, electrical equipment and textile products beginning on Nov. 1, as the country braces for an escalating trade war with the United States.

The overall tariff level will be reduced to 7.5 percent in 2018 from 9.8 percent in 2017 as a result, the cabinet has said.

Reporting by Kevin Yao; Editing by David Goodman and Jane Merriman

Source: Reuters “China to cut import tariffs on wide range of products”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


China Tests Wide-Speed-Range Hypersonic Space Plane, Nuclear Missile


Researchers tested three different design shapes and monitored the performance of each, CCTV reported. Photo: Sina.com.cn

SCMP says in its report “China takes step towards precision warheads for unstoppable nuclear weapon, state media says” yesterday that according to China’s state TV media CCTV on September 21 China tested three scalled-down models of “wide-speed-range vehicles that can fly from hypersonic to lower than sound velocity.

The three models are China’s differently shaped designs that China tests for its hypersonic plane and unstoppable nuclear-capable precision weapons.

Hypersonic speed ensures that the hypersonic missile is unstoppable but such high speed allows affects the precision in hitting the target. The variable range of speed enable the missile to reduce its speed for adjusting its trajectory and position to ensure precision hit.

Two of the three models are shaped similar to the waverider Starry Sky 2 China tested last month but the third one is different in shape.

The third one’s shape is called “I” shape, which the Institute of Mechanics of Chinese Academy of Sciences claimed in a paper published in February could produce 60 per cent higher lift coefficient than the waverider.

Comment by Chan Kai Yee on SCMP’s report, full text of which can be viewed at https://www.scmp.com/news/china/military/article/2166298/china-takes-step-towards-precision-warheads-unstoppable-nuclear.


‘Turbulence’ in ties threatens U.S.-China security meeting


Ben Blanchard, Michael Martina September 29, 2018

BEIJING (Reuters) – A key diplomatic and security meeting between China and the United States next month may not take place due to tensions in relations, sources briefed on the matter said, potentially the latest casualty of worsening ties.

Beijing and Washington are locked in a spiraling trade war that has seen them level increasingly severe rounds of tariffs on each other’s imports.

Friction between the world’s top two economies is now moving beyond trade, with U.S. President Donald Trump accusing Beijing this week of seeking to interfere in congressional elections, marking what U.S. officials told Reuters was a new phase in an escalating campaign by Washington to put pressure on China.

On the military front, China has been infuriated by the United States putting sanctions on the People’s Liberation Army (PLA) for buying weapons from Russia, and by what Beijing sees as stepped up U.S. support for self-ruled Taiwan, claimed by China as its sacred territory.

Two Beijing-based diplomatic sources familiar with the plans said U.S. Secretary of State Mike Pompeo and U.S. Defense Secretary Jim Mattis were both due in Beijing next month for the U.S.-China Diplomatic and Security Dialogue, which first took place last year in Washington, a reboot of earlier high-level talks under previous administrations.

However, both sources said that this meeting was now in doubt.

“There is a lot of uncertainty because of the turbulence in the relationship,” said one the sources.

The second source said that the People’s Liberation Army was especially unhappy with the United States at the moment because of the U.S. sanctions on the Chinese military and U.S. support for Taiwan, including approving a new round of arms sales this week.

“The PLA is fed up over the Taiwan issue. They’re increasingly hardline on this,” the source said.

Both sources spoke on condition of anonymity as the trips have not been made public. They also cautioned the meetings may still take place as planned, and that no final decisions have been reached.

China’s Defence Ministry said it was talking to the United States about the dialogue.

“China and the United States have all along maintained communication about the diplomatic and security dialogue,” it said in a statement to Reuters, without elaborating.

China’s Foreign Ministry said in a short statement sent to Reuters that the two countries were in “close contact” about the dialogue, and that if it had any other information it would release it in a timely manner.

The U.S. Embassy in Beijing declined to comment, as did the U.S. State Department. The Pentagon said it does not discuss future travel plans.

DECOUPLING?

In his latest broadside on Wednesday, Trump accused China of seeking to interfere in the Nov. 6 U.S. congressional elections, saying that Beijing did not want him or his Republican Party to do well because of his pugnacious stance on trade.

While China has denounced what it called his “slander”, it has so far held off taking any direct steps to retaliate.

However, prior to Trump’s remarks Beijing canceled a previously set round of military talks with Washington over the sanctions on China’s military, and has denied a U.S. warship permission to visit Hong Kong in October.

The Chinese government’s top diplomat, State Councillor Wang Yi, said on Friday there was “no cause for panic” over friction between Beijing and Washington, but warned that China would not be blackmailed or yield to pressure over trade.

President Xi Jinping said this week that, with the rise of unilateralism and trade protectionism, China should embark on a path of self-reliance, a startling aim for a country that has sought to project itself on the world stage and touts the benefits of global free trade.

China had already been trying to reduce its reliance on foreign technology through its Made in China 2025 initiative, though it stopped openly touting the plan earlier this year in the face of blowback from the United States.

“Divorce is the word I use,” Tu Xinquan, a trade expert at Beijing’s University of International Business and Economics who has advised the Chinese government, told Reuters recently.

“Now, most people believe Trump is trying to contain China. Many government officials think this way.”

Last week, Jack Ma, chairman of Chinese e-commerce giant Alibaba, said bilateral trade frictions could last two decades, and that the firm could no longer meet its promise to create 1 million American jobs.

“I think there are leaders in the U.S. government who believe that so long as the Chinese system is not willing to change, then the next best scenario for the United States is a gradual decoupling of the economies,” Tim Stratford, managing partner of law firm Covington & Burling’s Beijing office and a former senior U.S. trade diplomat, said in a recent podcast.

China has insisted it wants to resolve all its disputes with the United States.

Ruan Zongze, a former Chinese diplomat now with the China Institute of International Studies, a think-tank affiliated with the Foreign Ministry, called it unrealistic to think the two countries could “decouple” considering how inter-connected they were.

“It’s like two people having an argument,” said Ruan. “Can you really resolve it if you stop speaking to each other?”

Editing by Tony Munroe and Alex Richardson

Source: Reuters “’Turbulence’ in ties threatens U.S.-China security meeting”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


China says ‘no cause for panic’ over U.S. ties, but won’t be blackmailed


David Brunnstrom, Rodrigo Campos

September 29, 2018

UNITED NATIONS/NEW YORK (Reuters) – The Chinese government’s top diplomat, Wang Yi, said on Friday there was “no cause for panic” over friction between Beijing and Washington, but warned that China would not be blackmailed or yield to pressure over trade.

At a U.N. Security Council meeting on Wednesday, U.S. President Donald Trump escalated tensions with Beijing by accusing it of seeking to meddle in the Nov. 6 U.S. congressional elections to stop him and his Republican Party from doing well because of his China trade policies. At the same meeting, Wang rejected the charge.

“Protectionism will only hurt oneself, and unilateral moves will bring damage to all,” Wang said in a speech at the United Nations General Assembly on Friday.

“Regarding trade frictions, China stands for a proper settlement based on rules and consensus through dialogue and consultation on an equal footing. China will not be blackmailed or yield to pressure.”

Trump, who accuses China of stealing U.S. intellectual property, limiting access to its own market and unfairly subsidizing state-owned industries, has escalated his trade war with China and U.S. tariffs on $200 billion worth of Chinese goods kicked in on Monday, prompting Beijing to retaliate with additional tariffs on $60 billion of U.S. products.

Wang earlier told the Council on Foreign Relations in New York that concrete actions had to be taken to maintain relations between the United States and China.

“The closer our engagement, the more closely entwined our interests, maybe various suspicions and even frictions may ensue,” Wang said.

“This is not surprising and it is also no cause for panic. What is important is how these differences should be viewed, evaluated and handled.”

Wang, who holds the twin titles of foreign minister and state councilor, dismissed any suggestion there was forced technology transfer from foreign firms in China and played down complaints by some U.S. firms about market conditions in China.

“A small number of companies that are not so satisfied may speak up louder, but I don’t think they represent the majority of the companies in the Chinese market,” he said.

Further cooperation between the United States and China was key in pursuing denuclearization of its ally North Korea, Wang said, while urging the creation of a peace mechanism and for the United States to give North Korea more incentives.

“We believe it is … right for the U.S. to make timely and positive responses so as to truly meet North Korea halfway,” Wang said in his U.N. speech.

U.S. Secretary of State Mike Pompeo warned members of the United Nations Security Council on Thursday that they must “set the example” by enforcing sanctions on North Korea as China and Russia suggested the council consider easing the tough measures because progress had been made.

Wang warned that scrapping the 2015 Iran nuclear deal, which China and other powers are fighting to save after Trump pulled out of it in May, could lead to a regional arms race.

He said China was fostering closer economic ties with Russia as the two economies were complimentary and Moscow and Beijing were also on the same page on international issues.

“We want to build a new kind of relationship featuring non-confrontation, non-conflict and no targeting any third country,” he said. “Russia is our largest neighbor, and there’s need for normal and friendly ties between neighbors.

“Certainly, the two economies are highly complementary. We need the Russian energy like oil and natural gas and they need Chinese processed goods … and inexpensive Chinese goods.”

Wang said China had exercised “utmost restraint” in the South China Sea and seeks peaceful solutions to disputes there. He said Beijing’s sovereignty over the South China Sea islands was “very clear” and that people there felt the need for enhanced defenses given “heavy” U.S. military patrols, Wang said.

China claims most of the South China Sea, through which about $3 trillion worth of trade passes every year. Malaysia, Vietnam, the Philippines and Brunei also claim parts of the sea, which has oil and gas deposits and rich fishing grounds.

Wang said that while Asia belonged to the people of Asia, China did not seek a closed continent or to create “a new order” or hegemony.

China’s Foreign Minister Wang Yi addresses the United Nations General Assembly at U.N. headquarters in New York, U.S., September 28, 2018. REUTERS/Carlo Allegri
“China will not, repeat, not repeat the old practice of a strong country seeking hegemony,” Wang said. “I don’t think China will become the United States and China will not challenge the United States, still less will China take the place of the United States.”

Reporting by David Brunnstrom and Rodrigo Campos; writing by John Irish and Michelle Nichols; editing by Grant McCool and Jonathan Oatis

Source: Reuters “China says ‘no cause for panic’ over U.S. ties, but won’t be blackmailed”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


China tells U.N. it will not be ‘blackmailed’ or yield to trade pressure


September 28, 2018

UNITED NATIONS (Reuters) – The Chinese government’s top diplomat Wang Yi said on Friday Beijing would not be blackmailed or yield to pressure over trade and criticized unilateral moves by some states that China believes would bring harm to all.

China’s Foreign Minister Wang Yi addresses the United Nations General Assembly at U.N. headquarters in New York, U.S., September 28, 2018. REUTERS/Carlo Allegri

“Protectionism will only hurt oneself, and unilateral moves will bring damage to all,” Wang said in a speech at the United nations General Assembly. “Regarding trade frictions, China stands for a proper settlement based on rules and consensus through dialogue and consultation on an equal footing. China will not be blackmailed or yield to pressure.”

Reporting by John Irish; editing by Grant McCool

Source: Reuters “China tells U.N. it will not be ‘blackmailed’ or yield to trade pressure”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Xi Happy at Tariff Hikes, Trump Furious to Place All-round Pressure


We have two very interesting reports on US-China trade war. The first is SCMP’s report titled “Xi Jinping says trade war pushes China to rely on itself and ‘that’s not a bad thing’” on September 26.

The report quotes Xi as saying, “Internationally, it’s becoming more and more difficult [for China] to obtain advanced technologies and key know-how. Unilateralism and trade protectionism are rising, forcing us to adopt a self-reliant approach. This is not a bad thing.”

By trade protectionism, Xi obviously refers to Trump’s trade war attacks at China.

However, Xi did not stop at technology self-reliance. The report quotes him as saying that China was a big country which must “depend on itself for food supply, depend on itself for economic development, and depend on itself for manufacturing”.

Now food ranks first in Xi’s self-reliance. It means Xi is determined to free China from its dependence on US exports of agricultural products. Sorry, US farmers.

Trump thought he would have brought China down to its knees by his high pressure of tariff hikes. Xi’s firm response, the first ever of Xi’s response to Trump’s trade war, makes Trump furious. Trump sees that he has limited ammunition in tariff hikes. What if he has imposed tariff hikes on all Chinese goods but still fail to subdue China?

He has to find other means. That is reflected in Reuters’ report today titled “Trump’s election meddling charge against China marks U.S. pressure campaign”. It says that according to senior US officials, Trump’s “accusation of Chinese meddling in upcoming U.S. elections marks a new phase in an escalating pressure campaign against Beijing that Washington is pursuing on multiple fronts”

The accusation is not supported by any evidence. Reuters says, “The only specific action by China that Trump cited was that it was ‘placing propaganda ads’ in U.S. newspapers, referring to a Chinese government-run media company’s four-page supplement in the Sunday Des Moines Register promoting the mutual benefits of U.S.-China trade.

The ad may has some influence on Iowa farmers but Reuters says, “However, the practice of foreign governments buying space in U.S. newspapers to promote trade is common and differs from a clandestine operation run by a national intelligence agency.”

Trump’s accusation proves what US senior officials said about Trump, being furious, resorting to all-round pressure on China to force it to surrender.

It is also proved by recent flights of US B-52 bombers in East and South China Seas, US planned sale of weapons to Taiwan, etc.

In my previous posts I said that a soldier may fight with emotion but a commander must fight with wisdom. It seems that Trump is now fighting with emotion while Xi, with wisdom. Trump’s accusation, B-52 flights and weapons sales to Taiwan cannot hurt China but Xi’s self-reliance may hit the US hard.

Tariff hikes are but frontal confrontation, according to Sun Tzu’s teaching, to win the war China shall have ingenious surprise move. Now, self-reliance is Xi’s ingenious surprise move.

Xi wants China to rely on itself in food, manufacture and technology. If so China will not import food, airliners, electronics, chips, etc. from the US. With self-reliance on China’s huge market, China will no longer rely on its exports to the US. Then what will be the use of tariff hikes?

Xi’s self-reliance will ensure Trump’s failure in trade war.

Comment by Chan Kai Yee on SCMP and Reuters’ reports, full text of which can respectively be viewed at https://www.scmp.com/economy/china-economy/article/2165860/xi-jinping-says-trade-war-pushes-china-rely-itself-and-thats and https://www.reuters.com/article/us-usa-china/trumps-election-meddling-charge-against-china-marks-u-s-pressure-campaign-idUSKCN1M72VQ.


Breakingviews – Trump lands too late to spoil China’s Africa party


Ed Cropley September 26, 2018

LONDON (Reuters Breakingviews) – Donald Trump has discovered Africa. After years of paying scant attention to the continent’s economic development, Washington is trying to counter China’s pervasive influence. Yet doubling financing to poor countries to $60 billion – the same amount Beijing pledged to Africa this month – sounds worryingly Cold War. If a desire to trump his Chinese counterpart, rather than solid financials, is the U.S. president’s main objective, American taxpayers will pay the price.

Western governments have grown increasingly worried about so-called Chinese ‘debt diplomacy’ – offering African and other poor-country governments cheap loans for things they might not need or be able to afford, like shiny new railroads. Some of the loans, whose terms are often closely guarded secrets, are secured against minerals such as cobalt or iron ore.

Beijing denies ill-intent, saying it is simply helping Africa develop and filling a gap in the sovereign lending market. Borrowers say Chinese loans come with better terms than, say, those offered by the World Bank or commercial lenders. Washington’s misgivings are now shifting to action. A bill wending its way through Congress would double the firepower of the Overseas Private Investment Corporation (OPIC), and allow it to buy shares in projects, rather than just lend them money.

The agency run by Ray Washburne – a Trump backer who founded a restaurant group including the Mi Cocina and Taco Diner outlets – prides itself on turning a profit. In the last decade OPIC has paid back $3.7 billion to government coffers. This suggests its terms may be less generous than the concessionary rates granted by Beijing. Forgive African governments for not rushing to sign up.

Offering more favourable terms on its loans will elicit cries of hypocrisy: that Washington risks adding to the burdens of a continent already drowning in debt from poorly conceived initiatives dreamt up by equally poor leaders. Yet by taking stakes, OPIC assumes more risk. Equity ranks below debt in the capital structure. If a project goes belly-up – not unthinkable given the many African governments now trying to reschedule Chinese loans – shareholders may be wiped out.

In the end, then, OPIC’s change of tack could end in handouts, rather than development. That’s just the sort of critique an America First political candidate might make of Trump’s new Africa deal.

Source: Reuters “Breakingviews – Trump lands too late to spoil China’s Africa party”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


China to boost $3.8 trillion digital economy, Xi calls for self-reliance


September 26, 2018

BEIJING (Reuters) – China on Wednesday pledged to expand its $3.8 trillion digital economy and create jobs in new sectors such as big data and artificial intelligence (AI) as the world’s second-biggest economy looks to shift away from a reliance on polluting heavy industries.

China is in the midst of a long-term restructuring that has seen the decline of low-end industries and the emergence of higher-value factories that make products from robotics to drones.

But an intensifying trade war with the United States, China’s biggest trading partner, has stoked concerns that Beijing’s long-term plan to shift to high-end manufacturing under its ‘Made in China 2025’ plan could be jeopardized.

In recent months, Chinese government departments and agencies such as the National Development and Reform Commission (NDRC) have been affirming their commitment to long-term restructuring, which Beijing sees as a means to rely less on trade and other external growth drivers.

China will make further inroads in its digital economy including the internet of things, big data, clouding computing and AI, the NDRC said on Wednesday.

Those sectors will become new drivers of job creation by 2025, the state planner said.

China should embark on a path of self-reliance with the rise of unilateralism and trade protectionism, state-controlled People’s Daily quoted President Xi Jinping as saying on Wednesday as he conducted an inspection tour of factories in the rustbelt province of Heilongjiang.

This is not a bad thing, Xi said, as China will have to rely on itself in the end.

Chinese state media has accused Washington of using trade to suppress the country’s development.

The NDRC said it will also step up financing support to help new industries expand, including drawing funds from capital markets.

Earlier this month, it signed an agreement with China Development Bank, a major policy lender, to offer 100 billion yuan ($14.55 billion) in financial support for the digital push.

China’s digital economy rose 18 percent to 26 trillion yuan ($3.8 trillion) last year, equal to a third of the country’s gross domestic product (GDP), according to the China Academy of Information and Communications Technology.

Traditional sectors will be digitalized, driving more workers to switch jobs, said the NDRC, adding that China will also look to attract foreign talent.

Beijing is banning the addition of new capacity in low-end manufacturing sectors such as textiles, furniture, food and chemicals, the Beijing Daily said on Wednesday.

But manufacturing of new energy vehicles and industrial robots will be allowed.

The digital economy is also expected to help modernize agriculture, with China keen to rejuvenate aging rural areas, according to the NDRC.

Reporting by Stella Qiu and Ryan Woo; Editing by Gopakumar Warrier

Source: Reuters “China to boost $3.8 trillion digital economy, Xi calls for self-reliance”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Trump accuses China of 2018 election meddling; Beijing rejects charge


Yara Bayoumy, Michelle Nichols September 26, 2018

UNITED NATIONS (Reuters) – U.S. President Donald Trump on Wednesday accused China of seeking to meddle in the Nov. 6 U.S. congressional elections, saying Beijing did not want his Republican Party to do well because of his pugnacious stance on trade.

“China has been attempting to interfere in our upcoming 2018 election, coming up in November. Against my administration,” Trump told a U.N. Security Council meeting whose ostensible subject was nonproliferation of weapons of mass destruction.

Chairing the Council for the first time, Trump made no reference to suspected Russian meddling in the 2016 U.S. election and provided no evidence for his allegation about China, which Beijing immediately rejected during the same meeting.

“We did not and will not interfere in any country’s domestic affairs. We refuse to accept any unwarranted accusations against China,” the Chinese government’s top diplomat Wang Yi told the Council.

The United States and China are embroiled in a trade war, sparked by Trump’s accusations that China has long sought to steal U.S. intellectual property, limit access to its own market and unfairly subsidize state-owned companies.

Later on Wednesday, Trump referred to a Chinese government-run media company’s four-page supplement in the Sunday Des Moines Register promoting the mutual benefits of U.S.-China trade. The practice of foreign governments buying space in U.S. newspapers to promote trade is common and differs from a clandestine operation run by a national intelligence agency.

“China is actually placing propaganda ads in the Des Moines Register and other papers, made to look like news,” Trump said in a Twitter post.

In a Des Moines Register article about the advertising supplement, Carol Hunter, executive editor of the newspaper, said the placement was not surprising.

“It’s not surprising that China Daily sought to place advertising with the Des Moines Register, because the Register is Iowa’s largest news organization and Iowa farmers are disproportionately affected by China’s tariffs,” Hunter said.

A senior Trump administration official said China uses political, economic, commercial, military and information tools to influence U.S. public opinion and promote the interests of the Chinese government and Communist Party.

U.S. Vice President Mike Pence plans to make a speech next week detailing the allegations, said the official, who spoke to reporters on condition of anonymity, saying the U.S. government was working to declassify further information on the matter.

During an evening news conference, Trump described Chinese President Xi Jinping as a friend, prompting a reporter to ask how that could be the case given the allegations of meddling.

“Maybe he’s not any more, I’ll be honest with you,” Trump replied.

IRAN: U.S. ‘ABUSED’ COUNCIL SESSION

Trump also used the Security Council session to defend the U.S. withdrawal in May from a 2015 international nuclear deal with Iran, hint at progress in U.S. efforts to curb North Korea’s nuclear program, and to criticize Iran and Russia for supporting Syrian President Bashar al-Assad in the country’s war, now in its eighth year.

“The Syrian regime’s butchery is enabled by Russia and Iran,” Trump said.

Iranian Foreign Minister Mohammad Javad Zarif responded in a Twitter post, saying the United States had “abused” the Council and is “further isolated.”

Trump’s allegation of Chinese election meddling came as a surprise during a formal meeting around the Security Council’s horseshoe table that was expected to concentrate on the spread of nuclear, chemical and biological weapons.

“They do not want me or us to win because I am the first president ever to challenge China on trade and we are winning on trade, we are winning at every level. We don’t want them to meddle or interfere in our upcoming election,” said Trump, who is attending the U.N.’s annual gathering of world leaders.

Trump himself is not up for re-election until 2020 but November’s voting will decide whether his Republican Party can keep control of the U.S. House of Representatives and the Senate. Some opinion polls show that the Democratic Party could make a strong showing, notably in the House.

In the latest salvo in the trade dispute, U.S. tariffs on $200 billion worth of Chinese goods and retaliatory taxes by Beijing on $60 billion worth of U.S. products kicked in on Monday, unnerving global financial markets.

During his roughly 10-minute speech, Trump made no reference to U.S. allegations against Russia concerning the election that brought him to power.

Speaking later to reporters, Trump said: “They (China) are trying to meddle in our elections. And we’re not going to let that happen, just as we’re not going to let that happen with Russia.”

Trump’s presidency has been dogged by the Russian issue, which led to an investigation by U.S. Special Counsel Robert Mueller into potential collusion between Moscow and the Trump campaign, which Trump rejects. Moscow denies interfering.

Reporting by Yara Bayoumy, Steve Holland, David Lawder and Michelle Nichols; Writing by Arshad Mohammed; editing by James Dalgleish and Grant McCool

Source: Reuters “Trump accuses China of 2018 election meddling; Beijing rejects charge”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Trade War White Papers—China’s Declaration of Trade War


Chinese government published its White Paper on trade war with the US titled “The Facts and China’s Position on China-US Trade Friction”, It is a long piece of article more than 70 pages long that elaborates the benefits the US has got from its trade with China in spite of the trade deficit and the overrating of the deficit as the US calculates the full value of the goods US firms have made in China and exported to the US but China only gets a small fraction of the value of the goods by assembling the goods.

It refutes US accusation of China stealing or forcing transfer of US technology and argues to justify China’s pursuit of high technology, especially the Make in China plan.

Readers interested can view the full text of the White Paper at http://www.chinadaily.com.cn/pdf/2018/The.Facts.and.Chinas.Position.on.China-US.Trade.Friction.doc. However, I do not think they will spend their time to read such a long article. They all can judge by themselves who is right and who is lying.

What we are interested is how China will respond to US trade war attacks: surrender or fight a long war resolutely.

Trump believes the pressure of tariff hikes imposed by him on China may make China surrender, but China’s respond in the White Paper, instead, is a formal declaration of fighting back.

The White Paper begins its last part “China’s Position” with paragraphs under the subhead “China is firmly committed to safeguarding its national dignity and core interests.” It says, “China does not want a trade war, but it is not afraid of one and will fight one if necessary. We have a highly resilient economy, an enormous market, and the hard-working, talented and united Chinese people. We also have the support of all countries in the world that reject protectionism, unilateralism and hegemony.”

No doubt, there will be a long trade war that will cause hardship not only to China and the US but also the whole world unless Trump is willing to cease his trade attacks at China on his own.

Comment by Chan Kai Yee on China’s White Paper on trade war.