Tag Archives: Sino-American trade war

China ready to fire back in the trade war? "The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board," Chairman Eric Xu told reporters at the launch of Huawei's annual report. "Why wouldn't the Chinese government ban the use of 5G chips or 5G chip-powered base stations, smartphones and other smart devices provided by American companies, for cybersecurity reasons?" Hmm. The chairman of Huawei may not speak for the Chinese government, but it is...

Nothingburger. DJT folded in face of economic consequences in an election year. He is a shoe-in in 2020 unless the economy tanks. The Democrats have nothing (but Bernie and they are not going to run him).  But this is hardly the end of it. The US is still fully committed to stopping China's rise, which is an impossibility.ReutersChina to buy $50 billion in U.S. farm products in return for tariff concessions-U.S. sourcesJeff Mason, Andrea Shalal, David Lawder

To be sure, China and the United States are not without their troubles. Both countries are showing stubborn growth in their carbon footprints and military spending, to name just two disturbing trends. But the data of the last 25 years portray U.S.-China commerce as the most synergistic bi-lateral relationship in world history, bringing peace along with mutual prosperity. Putting another myth to rest – other than for the zombies – and there are lots of them.Harvard Business ReviewIs China...

In the run up to the Iraq War, then-US Vice President Richard Cheney declared that even if the risk of weapons of mass destruction falling into terrorist hands was tiny, say 1%, we should act as if it were certain by invading. The US is at it again, creating a panic over Chinese technologies by exaggerating tiny risks.... With all respect due, Professor Sachs is simply wrong about the logic here. The logic for attacking Iraq had to do chiefly with control of the Middle East, the center of...

This comes amid US President Trump's announcement that the signing site of the 'phase one' trade deal with China would be announced 'soon'.A World Trade Organization’s arbitrator ruled Friday that China could impose $3.6 billion worth of tariffs on US goods over its unfair anti-dumping practices. "We determine that the level of nullification or impairment of benefits accruing to China as a result of the WTO-inconsistent methodologies used by the United States in anti-dumping proceedings...

The real problem with the phase one accord announced on October 11 is the basic structure of the deal into which it presumably fits. From trade to currency, the approach is the same – prescribing bilateral remedies for multilateral problems. Project SyndicateNo Art to the US-China Trade Deal Stephen S. Roach, a faculty member at Yale University and former Chairman of Morgan Stanley Asia See also Off-GuardianCan the US beat China in a “trade war”? Or will this be the end of...

A fair assessment from the American point of view, basically assuming American exceptionalism. Interestingly, the worst part of the article is the monetary analysis, considering the author is an economist working in the financial sector. Not surprising, though, since apparently so few have a correct understanding.The National InterestThe Gloves Are Off: The U.S.-China Trade War Is Coming for Big Business Scott B. MacDonald | Chief Economist, Smith’s Research and GradingsAlso at The...

New fourth round of tariffs on Chinese goods will hit US consumers and firms especially hard, just as the US enters an election season. Who blinks first?Asia TimesMoment of truth approaching for Trump’s trade warNile Bowie

Trade war escalating tit for tat. Who blinks first? And what happens if neither side blinks? ...with no trade deal in sight, at 12:00am on Sunday, the Trump administration slapped tariffs on $112 billion in Chinese imports, the latest escalation in a trade war that’s ground the global economy to a halt, sent Germany into a recession, and given the market an alibi to keep rising because, wait for it, "a trade deal is imminent." Only, it isn't, and 1 minute later, at 12:01am EDT, China...

Smoot-Hawley redux?  Tariffs and trade wars have knock-on effects. It's impossible to tell that this point where this is all leading, but one thing is sure, the status quo ante is dead. What will emerge is uncertain. The presumption in the US that things will get better. This is yet to be determined and it isn't possible to  know from the data. In addition, the policy is in constant flux.  As a result, expectations are becoming more and more subject to "animal spirits," and less and...