This blogger’s comment: The CNBC report I Reblog below shows that Trump is self-contradictory as he is at a loss what to do. His Chinese counterpart Xi Jinping remains silent as he has full self-confidence. Xi’s comment that he believes that the US does not want decoupling means he is asking the US the question: Does the US want decoupling while he wants to be a friend. For friends, there have to be mutual respect and equality so that China will not accept humiliating terms. That is what makes Trump anxious.
Trump downplays possible G-20 meeting with Chinese President Xi: ‘It doesn’t matter’ if he shows up
Published Fri, Jun 14 2019 • 9:49 AM EDT|Updated an hour ago
- President Trump appears to downplay expectations about a possible meeting with Xi Jinping at the G-20 summit later this month.
- He now says “it doesn’t matter” if the Chinese president shows up or not.
- “If he shows up, good, if he doesn’t – in the meantime, we’re taking in billions of dollars a month [in tariffs] from China,” Trump tells Fox.
President Donald Trump on Friday appeared to play down expectations about a meeting with Xi Jinping at the G-20 summit later this month, saying “it doesn’t matter” if the Chinese president attends.
“If he shows up, good, if he doesn’t — in the meantime, we’re taking in billions of dollars a month [in tariffs] from China,” Trump said in a 50-minute telephone interview on Fox News’ “Fox & Friends.”
Trump’s remarks Friday morning seemed to clash with comments he made just a few days earlier on CNBC.
In that interview Monday, the president vowed to immediately slap tariffs on an additional $300 billion worth of Chinese imports if Xi didn’t attend the G-20 summit, which is scheduled for June 28-29 in Osaka, Japan.
Neither the White House nor the Council of Economic Advisors immediately responded to CNBC’s requests for comment on the president’s latest remarks.
Tariffs are typically paid by the entities that import the shipments. Tariff defenders, including White House trade advisor and China hawk Peter Navarro, argue that the exporting companies are the ones punished.
“So our people are not paying — you know there’s this big thing about tariffs, ‘Oh, our people pay’ — it’s a lot of nonsense. You know what happens, really? Companies move back,” Trump told Fox.
In May, Trump increased tariffs on Chinese imports by $200 billion after trade negotiations between the two economic superpowers fell apart.
The possible bilateral meeting at the G-20 summit was seen by current and former Trump administration officials as a high-stakes stepping stone on the path toward regaining the ground lost with China and eventually securing a deal.
“There won’t be a deal at the G-20,” Clete Willems, a former top Trump trade advisor, said in an interview Tuesday with CNBC’s Kayla Tausche. But a Trump-Xi meeting at the summit could “catalyze a productive period of negotiations where the deal closes.”
Source: CNBC “Trump downplays possible G-20 meeting with Chinese President Xi: ‘It doesn’t matter’ if he shows up”
Note: This is CNBC’s report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
BEIJING (Reuters) – Chinese President Xi Jinping told Iran’s president on Friday that China will promote steady development of ties with Iran no matter how the situation changes, Chinese state media said.
The official Xinhua news agency said Xi made the comment in a meeting with Iranian President Hassan Rouhani on the sidelines of the Shanghai Cooperation Organization summit in Bishkek, Kyrgyzstan.
The United States blamed Iran for attacks on two oil tankers in the Gulf of Oman on Thursday that drove up oil prices and raised concerns about a new U.S.-Iranian confrontation, though Tehran has denied the allegation.
Reporting by Michael Martina; Editing by Nick Macfie
Source: Reuters “Xi says China will promote steady ties with Iran”
Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
On the eve of Chinese President Xi Jinping’s official visit to Russia, China’s president speaks to TASS and Rossiyskaya Gazeta on quite China’s economic outlook on June 4.
When he was asked the question: Could you share some insights on China’s economic outlook?
Xi gave the following reply to show his confidence in China’s ability to resist US trade war attacks:
The Chinese economy has achieved tremendous growth since the founding of New China 70 years ago, and especially since the start of reform and opening-up 40 years ago. China is now the world’s second largest economy, the largest manufacturer, the largest trader in goods, and holder of the largest foreign exchange reserves. In 2018, the Chinese economy passed the RMB90 trillion yuan mark and per capita GDP was close to US$10,000. Our 6.6 percent economic growth rate, one of the highest in the world, meant that China accounted for around 30 percent of global growth last year.
In spite of a slowdown in global growth and trade, the Chinese economy has had a strong start this year with key economic indicators kept in a proper range. In the first quarter, our GDP grew by 6.4 percent, sustaining its momentum of steady growth in recent years and representing the 14th consecutive quarter of staying in the 6.4 percent to 6.8 percent range. Domestic consumption remained the main driver of growth. Employment continued to expand, with 4.59 million urban jobs added in the first four months of 2019. Personal income grew faster than the economy. Prices were generally stable, with consumer prices posting a modest growth of 2 percent. Total imports and exports were up by 4.3 percent year-on-year, and China’s foreign exchange reserves stayed above US$3 trillion. Apart from all this, we were able to improve the economic structure, transform the model of development and enhance the quality and efficiency of economic performance, thus strengthening the momentum of steady and robust growth.
The trajectory of our economy toward more steady growth has not changed and will remain so in the long run. Looking ahead, a number of factors will support the steady, healthy and sustainable growth of the economy. These include:
First, China’s large pool of human resources. China has a population of nearly 1.4 billion, a 900-million-strong workforce, a talent pool of 170 million college graduates and people with professional skills, the world’s largest middle-income population, and more than 100 million market entities.
Second, China’s strong internal driving forces. The Chinese economy is mainly driven by domestic consumption. In 2018, domestic consumption contributed 108.6 percent of economic growth; in particular, the contribution of final consumption was as high as 76.2 percent.
Third, China’s growing economic dynamism. China’s R&D spending ranks second in the world, accounting for around 2.18 percent of its GDP. Emerging strategic industries, the sharing economy and other new economic forces are seeing continuous expansion.
Fourth, China’s mobilization capability. We have in China the strong leadership of the Communist Party of China, the political advantage that comes from being able to mobilize resources for major undertakings, the spirit of a nation united as one, the solid material and technological foundation built through decades of rapid development in the era of reform and opening-up, the enormous resilience, potential and flexibility in development, and the rich experience in macro-regulation as well as ample policy space. We therefore have all the necessary conditions as well as the capability and confidence to deal with any risks and challenges.
Comment by Chan Kai Yee on tass.com’s report “Xi Jinping: Russia and China staying in tune with the times”, full text of which can be viewed at http://tass.com/world/1061613.
As mentioned in my previous posts the concessions Trump asked China for: the reduction of trade deficit, equal treatment between foreign and Chinese enterprises, protection of intellectual property and decision of Chinese currency’s exchange rate by the market were the major content of Chinese President Xi Jinping’s predecessor Hu Jintao’s further reform and opening-up.
Hu had realized that China could no longer achieve economic growth with its old approaches of heavy investment to increase exports. First, the international market for China’s labor-intensive industries and products with low technology is saturated. Second, as CCP has raised workers’ living standards, their wages have been much increased to cause great reduction in the profit margins of China’s labor-intensive industries. China has to switch from export- and investment-geared economic growth to innovation-, creation- and consumption-led economic growth. The above-mentioned further reform and opening-up are indispensable for such a transformation.
China has to upgrade the technology of its labor-intensive enterprises. It has attained that goal in some enterprises but the workers unable to learn the technology have to be laid off to be replaced by employees with better education and skill.
Most of enterprises in labor-intensive industries are unable to upgrade their technology so that they have to move to areas with lower labor costs. They have to lay off their Chinese workers and employ local workers withe lower wages in the areas they have moved to so as to reduce their labor costs. There will be quite serious unemployment as a result.
The further reform, therefore, encountered serious opposition from the vested interests in those industries. The resulting unemployment problem also greatly worries the reformists.
Moreover, in order to urge enterprises, scientists, engineers and skillful workers to conduct innovation and creation, China has to treat state-owned, private and foreign enterprises equally to enable competition to force enterprises to improve. Xi knows that protectionism can only protect backward enterprises and cause them to lose the incentives for innovation and creation. However, that also encounters opposition from vested interests. Hu was unable to make progress in his further reform and opening up. Xi has also been unable to make progress fast enough due to the opposition and unemployment problem.
Under such circumstances, Trump’s trade war forces labor-intensive enterprises to upgrade or move to areas with lower labor costs. The misery of unemployment will be caused by Trump instead of the reform and opening-up
The introduction of competition with foreign enterprises and protection of intellectual property to satisfy Trump’s and other Western countries’ demand are what China has promised when its joined the WTO. Since China enjoys such treatment in Western countries, it certainly shall reciprocate. Chinese intellectuals are clever and hardworking. The pressure of competition will force them while the protection of intellectual property will encourage them to innovate and create.
Trump’s trade war provides Chinese President Xi Jinping with golden opportunity to speed up his further reform and opening-up. Xi certainly will delay the deal to end the trade war in order to keep the pressure until he has succeeded in moving abroad or upgrading labor-intensive industries, making Chinese enterprises accustomed to competition and have the urge for innovation and creation.
Article by Chan Kai Yee
The conference, which runs through Wednesday, counts China tech giants, including Alibaba Group, Tencent and Huawei Technologies among its exhibitors.
May 26, 2019, 11.31 PM IST
Hong Kong: Countries should cooperate in developing the Internet, big data and artificial intelligence, China President Xi Jinping said in a letter to the China International Big Data Industry Expo that started Sunday in the southwestern city of Guiyang, Xinhua reports.
China attaches great importance to the development of the big data industry and is willing to explore a growth path with other nations for new technologies, Xi said in the letter, according to Xinhua.
The conference, which runs through Wednesday, counts China tech giants, including Alibaba Group, Tencent and Huawei Technologies among its exhibitors.
The US government has announced a ban on exports from Huawei and barred the Chinese company from buying components from American firms. Washington also threatened to ban five other Chinese video-surveillance businesses.
Shares of semiconductor and chip suppliers have plunged over the past month amid trade-war tensions. Raymond James analyst Chris Caso said in a note to clients this week that he expects “many, if not most,” chip companies may have to cut estimates.
Source: The Economic Times “Xi Jinping seeks global cooperation on technology after Huawei’s US ban”
Note: This is Economic Times’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
People are puzzled that when a deal to end the trade war was in sight, China suddenly refused to accept the deal. Now, US President Trump wants to have a summit with his Chinese counterpart Xi Jinping at the G20 summit in Japan next month in order to seal a deal.
In its report “Trump-Xi trade war summit at G20 in Japan still up in the air as ‘conditions not right’” yesterday, SCMP quotes Trump as saying, “Maybe something will happen. We’re going to be meeting, as you know, at the G20 in Japan and that’ll be, I think, probably a very fruitful meeting.”
He has got no response from Xi for that so that whether there will be a meeting remains a question. Xi’s public response to Trump’s launching of heavy trade war attacks at China with great tariff hikes is to tell Chinese people to be brave in experiencing the hardship of the war like what Chinese revolutionaries did in their famous Long March.
Xi is not telling Chinese people to rest at ease that their government will make great efforts to reach a deal with the US so that they may not suffer. He is telling them to be prepared for a long war like the Long March that lasted for two years.
Trump is not prepared for that. He thought the trade war would be an easy win as China would suffer much more greatly than the US in the war. Therefore, he believed that China had no choice but to surrender. That was why US trade representatives drafted an arrogant text of the treaty for Chinese representative to sign. Xi certainly will not sign such a humiliating treaty as it means China’s surrender without fighting.
Xi’s efforts to reach a deal with the US aim at maintaining good relations with the US as a trade war will only hurt both sides. Trump misunderstood Xi’s good intention as weakness. He thought he might subdue China with economic pressure. Now he is at a loss to see that China remains firm in spite of the great tariff hikes and the threat of even greater tariff hikes.
When China was attacked by foreigners, Chinese people have always supported their government to fight back heroically. Therefore, Xi has Chinese people’s support and can afford a long trade war. Trump, however, does not have American people’s full support and cannot afford a long trade war. As a result, Xi is in an invincible position while Trump is not. However, Trump cannot accept a deal without victory. That will be the problem for a fast ending the trade war.
I am not optimistic about a fast amiable ending of the trade war. On the contrary, I think that failing to win the trade war, the US may even try a real war with China.
Comment by Chan Kai Yee on SCMP’s report, full text of which can be viewed at https://www.scmp.com/economy/china-economy/article/3011531/trump-xi-trade-war-summit-g20-japan-still-air-conditions-not.
Wed 22 May 2019 09:20:17 GMT
Author: Justin Low
Comments by Chinese president Xi Jinping
- Says to step up technology innovation, expand industrial chain
- Says to push forward with quality manufacturing in the country
- Says to speed up development of core technologies with own intellectual property
Yup, sure looks like China will be keeping to itself now and the language here certainly is a subtle message to the US in the trade dispute we’re currently seeing.
Source: forexlive.com “Chinese president Xi: We should defeat various domestic, foreign risks and challenges”
Note: This is forexlive.com’s report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.