Reuters says in its report “Trump’s sanctions on Iran tested by oil-thirsty China, India” yesterday that in order to reimpose sanctions on Iran, the US wants Iran’s major oil customers to refrain from purchase of Iran’s oil.
Two of Iran’s five major oil customers India and Turkey have difficulties to obey. They fear rise of oil price due to reduction of world oil supply caused by the sanction.
Iran’s largest oil customer China, however, has geopolitical consideration. Since the US regards it as trade war enemy, it shall help Iran to counter US sanctions like that it has been doing for Russia. The core of China’s united front against the US is its alliance with the enemies of the United States.
True enough, on October 25, Reuters says in its report “Iran to boost oil supplies to China in October-November: Rosneft CEO”, “Iran plans to supply more than 20 million barrels of crude oil to the Chinese port of Dalian in the October-November period, up sharply from the usual monthly volumes of up to 3 million barrels, Igor Sechin, the CEO of Russian oil major Rosneft, said on Thursday.”
China will pay Iran Renminbi for its oil due to US financial sanction so that Iran will buy much more goods from China. That will partially compensate China’s loss in US market due to US trade war with China.
Moreover, increase of oil purchase from Iran may reduce Russian oil supply to China so that Russia may sell more oil to Japan and South Korea that are also oil=thirsty. Both Japan and South Korea are US trade war targets and both of them want to expand their shares in China’s vast market.
If India and Turkey need Iranian oil, China certainly will not take all Iranian oil but will left some for them. It can even help India build pipelines to get oil and gas from Iran through Pakistan.
China- and Russian-led Shanghai Cooperation Organization (SCO) has already taken in India and Pakistan. It may soon take in Iran as Iran is applying for SCO membership. Then SCO will be quite a large new cold war camp to counter the US with other Asian countries including Japan and South Korea as its peripherals.
Where is US camp of cold war? It even has difficulties in its relations with its European allies.
Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-iran-nuclear-oil/trumps-sanctions-on-iran-tested-by-oil-thirsty-china-india-idUSKCN1N30GW.
Japan is America’s closest ally in Asia. Its Prime Minister Abe has made great efforts to help former US President Obama establish the Trans-Pacific Partnership (TPP) to contain China. However, Obama’s successor President Trump, though is trying hard to contain China with trade war now, scrapped TPP as soon as he was inaugurated in spite of Abe’s great efforts in trying to persuade Trump not to do so.
Moreover, Trump has been pressuring Japan to make trade concessions to the US in order to reduce US trade deficit with Japan.
He has thus pushed Japan into China’s arms. According to Reuters’ report “China, Japan to forge closer ties at ‘historic turning point’” on October 25, Abe is now making great efforts to improve relations with China that he previously tried hard to contain and will make efforts to make Regional Comprehensive Economic Partnership (RCEP) a reality, which China takes the lead to form in order to counter Obama’s TPP.
There were also Reuters’ reports “Pakistan PM Khan, in search of loans, to visit China next week” and “Iran to boost oil supplies to China in October-November: Rosneft CEO” the same day on Pakistan seeking financial aids from China and Chinese purchase of Iran’s oil to help Iran deal with US sanctions.
However, the most disappointing Reuters’ news for the US on that day is “India aim to hold army drills in China by end of year”. Due to the border dispute between China and India, the US has tried hard to have India join its quad of the US, Japan, Australia and India to counter China. However, India refused to join the other three of the quad in their military drill. On the contrary has been planning to conduct military drill jointly with China that the US wants it to contain.
What India, Japan, Iran and Pakistan have been doing proves that the US is risking being entirely isolated in Asia while China is successful in forming a united front in Asia to counter US hegemony.
Comment by Chan Kai Yee on Reuters’ reports, full text of which can repectively be viewed at https://www.reuters.com/article/us-china-india-defence/china-india-aim-to-hold-army-drills-in-china-by-end-of-year-idUSKCN1MZ1BW, https://www.reuters.com/article/us-china-japan/china-japan-to-forge-closer-ties-at-historic-turning-point-idUSKCN1MZ00O, https://www.reuters.com/article/us-iran-oil-china-rosneft/iran-to-boost-oil-supplies-to-china-in-october-november-rosneft-ceo-idUSKCN1MZ15K and https://www.reuters.com/article/us-china-pakistan/pakistan-pm-khan-in-search-of-loans-to-visit-china-next-week-idUSKCN1MZ1HZ.
Reuters says in its report “China, Japan to forge closer ties at ‘historic turning point’” on October 25, during Japanese Prime Minister Shinzo Abe’s 3 days China visit “China and Japan on Friday pledged to forge closer ties as both countries stood together at an “historic turning point”, signing a broad range of agreements including a $30 billion currency swap pact, amid rising trade tensions with Washington.”
It quotes Abe as sauomg. “From competition to co-existence, Japan and China bilateral relations have entered a new phase. Hand in hand with Premier Li, I would like to advance our ties forward” and “With President Xi Jinping, I would like to carve out a new era for China and Japan.”
China’s state media quote Xi as saying that bilateral ties had returned to the right track and China would ensure the positive momentum continues, according to state media and “That is worth cherishing by both sides”.
In addition $30 billion currency swap pact the two sides has signed a wide range of agreements including 500 business deals worth $18 billion between Chinese and Japanese companies during the visit,
Reuters quotes Chinese Premier Li Keqiang as saying that both sides had agreed that as major countries, China and Japan should uphold free trade and accelerate talks on the Regional Comprehensive Economic Partnership (RCEP) and on a China-Japan-Korea trade zone.
That is what they will do to counter US unilateralism. Since Trump has scrapped TPP that Japan is anxious to have to contain China and been pressuring Japan for trade concessions, Japan has no choice but to join China in forming RCEP and China-Japan-Korea free trade zone to counter the US.
Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-china-japan/china-japan-to-forge-closer-ties-at-historic-turning-point-idUSKCN1MZ00O
Tetsushi Kajimoto October 16, 2018
TOKYO (Reuters) – The number of Japanese companies affected by the U.S.-Sino trade war has jumped to a third, soaring from just 3 percent in May with firms fretting about prospects for their exports from China as well as slower Chinese demand, a Reuters poll found.
The survey also showed 53 percent of firms were worried about the fallout from the escalating trade friction and that some, albeit still a small percentage, had begun looking at shifting production of exports out of China to other countries.
Of the companies citing an impact, the vast majority said they were feeling the effect ‘to some extent’, with only 2 percent calling the impact large.
The fear is, however, that the fallout will become much worse.
“If it does become a fully fledged trade war, then this could hit Japanese exports and supply chains, in turn hurting capital expenditure and dampening consumer spending and potentially damaging Japan’s entire economy,” said Masaki Kuwahara, senior economist at Nomura Securities, who reviewed the survey results.
Washington in September levied tariffs of up to 25 percent on $250 billion of Chinese goods as punishment for what it says are unfair trade practices, while Beijing has hit back with tariffs on about $60 billion of U.S. imports.
U.S. President Donald Trump has since threatened to slap tariffs on an additional $267 billion of Chinese imports.
“The trade friction is having a big impact on exports from China of the raw materials used to build products in the United States,” a manager at an auto-sector firm wrote.
“Even if we consider measures to avoid tariffs, there’s a limit to what we can do,” the manager added.
The survey, conducted Sept. 27-Oct. 10, showed non-manufacturers firms were just as worried as manufacturers about the fallout.
“Any direct impact may be small, but sluggish business conditions and anxiety about the future could cause a decline in demand in the medium to long term,” wrote a manager at a construction firm.
Companies responded anonymously to the survey, conducted for Reuters by Nikkei Research. It polled 482 large and mid-sized non-financial firms, about 240 of which responded to the question about on the extent of the impact of the trade war.
Asked if they had an export base in China and were thinking of moving any facilities out of the country, 13 out of 97 firms that responded to the question said they were considering such a move.
Among the firms looking at shifting production, most said they were considering Southeast Asia as an alternative, while some were thinking about bringing output back home. None chose the United States.
Firms that have publicly said they could shift production include Toshiba Machine Co (6104.T) which has said it plans to move output of U.S.-bound plastic moulding machines from China to Japan or Thailand. Mitsubishi Electric Corp (6503.T) is shifting output of U.S.-bound machine tools from its base in Dalian, in northeastern China, to a Japanese plant in Nagoya.
The survey also found that 40 percent of Japanese firms thought the trade conflict could disrupt supply chains over the next three years, with many citing fears that prices for imports of raw materials and parts could surge.
“If major U.S. companies like Google, Amazon and Apple start bringing production home, that could destroy Chinese parts makers with which we do business,” a manager at a machinery maker also wrote.
Only 11 percent of firms said, however, that they were currently considering steps to deal with a potential escalation of trade spats.
Of those considering contingency measures, shifting production as well as diversifying sales and procurement routes were the most often cited.
The International Monetary Fund last week lowered its global economic growth forecasts for this year and next, predicting 3.7 percent for both years instead of 3.9 percent, citing trade policy tensions and the imposition of tariffs as a key factor behind the cut.
Reporting by Tetsushi Kajimoto; Editing by Malcolm Foster and Edwina Gibbs
Source: Reuters “Growing impact: a third of Japan Inc hurt by U.S.-China trade war – Reuters poll”
Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
October 15, 2018
BEIJING (Reuters) – China will impose anti-dumping tariffs on imports of hydroiodic acid from the United States and Japan, the Ministry of Commerce said on Monday.
The tariffs will take effect from Oct. 16, with levies set at 123.4 percent on U.S. suppliers and 41.1 percent on Japanese, and will last for five years, the ministry said.
Reporting by Beijing monitoring team; editing by Darren Schuettler
Source: Reuters “China slaps anti-dumping duty on chemical from U.S., Japan”
Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
Reuters says in its report today that US trade pressures are making China and Japan closer despite their disputes over the Diaoyus (known as Senkaku in Japan) and historical enmity. The following is the full text of the report:
China says Japan’s Abe to make official visit this month
October 12, 2018
BEIJING (Reuters) – Prime Minister Shinzo Abe will visit China from Oct. 25 to 27 in the first official visit by a Japanese leader in seven years, China said on Friday, as the United States steps up trade pressure on Beijing and Tokyo.
Japanese Prime Minister Shinzo Abe attends the joint news conference of the Japan-Mekong Summit Meeting at the Akasaka Palace State Guest House in Tokyo, Japan October 9, 2018. Franck Robichon/Pool via Reuters
President Donald Trump has made clear he is unhappy over Japan’s $69-billion trade surplus with the United States, and wants a two-way agreement to address it with the U.S. ally.
He has also slapped tariffs on hundreds of billions of dollars of Chinese imports for what he calls its trade abuses, prompting retaliation from Beijing.
“We hope this visit by Prime Minister Abe can help consolidate and elevate mutual trust, deepen practical cooperation, and promote continuous new development in ties,” Chinese foreign ministry spokesman Lu Kang said in Beijing.
China welcomes investment from Japanese firms, he told a regular briefing, adding that increasing trade and economic cooperation between the two major economies benefits both them and the world.
“We attach importance to China-Japan relations.”
Visits by Abe in recent years to attend multilateral events in China have not been considered official visits.
In September, after meeting Chinese President Xi Jinping in Russia, Abe said the two sides had agreed to work toward an October visit, in what was seen as a sign of warming ties between the two Asian rivals.
“Both Japan and China share a big responsibility for the peace and prosperity of this region,” Abe said in a speech in Tokyo on Friday.
He added that he aimed to drive ties between the neighbors to a new level through mutual visits by their leaders and expanded exchanges between their people.
Abe returned to office for a rare second term in December 2012, promising a hard line toward China in a territorial row over tiny islands in the East China Sea.
Although the dispute simmers, relations have stabilized recently amid trade actions by Washington toward both countries.
Reporting by Michael Martina in BEIJING and Yoshifumi Takemoto in TOKYO; Editing by Nick Macfie and Clarence Fernandez
Source: Reuters “China says Japan’s Abe to make official visit this month”
Note: The above is the full text of Reuters’ report I comment on. My reblogging of it does not mean that I agree or disagree with the report’ views
We have posts on the US pushing China and Russia into each other’s arms to form a de facto alliance, Pakistan to China’s arms to become China’s iron brother, Iran to facilitate China’s connection to the Middle East. Now, Reuters says in its report “Japan PM Abe says visit to China being arranged for next month”, in spite of territorial dispute, “relations have stabilized recently amid intensifying U.S. trade pressure on both China and Japan”.
Obviously, the US is pushing Japan into China’s arms now!
If Japan is in China’s arms, the US will lose its foothold in Asia.
Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-japan-china/japan-pm-abe-says-visit-to-china-being-arranged-for-next-month-idUSKCN1LS0AI