China to use ‘all means necessary’ to defend itself against Trump ‘protectionism’ - August 24, 2017

Media Report

August 24 , 2017

The Washington Post：China to use 'all means necessary' to defend itself against Trump 'protectionism'
The Washington Post reports: "China sharpened its rhetoric over the Trump administration's efforts to investigate its trade practices, vowing on Thursday to use 'all means necessary' to defend the country and its companies. Although analysts don't believe a trade war between the world's two largest economies is imminent, China's harsh words underline a recent fraying of the relationship between Beijing and Washington over trade and North Korea. On Wednesday, China's Foreign Ministry demanded that the United States 'immediately' withdraw unilateral sanctions imposed on several Chinese companies and individuals accused of illegally trading with the Pyongyang regime. President Trump initially said he would set aside trade disputes with China to gain Beijing's cooperation in reining in North Korea, but he reversed course this month by calling for a probe into the theft of intellectual property by Chinese companies. Experts say the Trump administration may be coming to terms with the limits of Beijing's willingness to put pressure on Pyongyang and wants to demonstrate that it is taking steps to bring down the trade deficit, a key campaign promise... On Thursday, (the Chinese Commerce Ministry) upped the ante, saying the decision had 'poured cold water' on efforts to improve bilateral trade relations."
CNBC：China's 'Belt and Road' initiative could be the next risk to the global financial system
CNBC reports: "China has pitched its mammoth, pan-Eurasian 'Belt and Road' infrastructure initiative as a means of promoting economic prosperity and fostering diplomatic ties on a global scale. That rhetoric may win plaudits at a time when other global powers are voicing increasingly protectionist agendas, but it also comes with risks... Reports on Tuesday claimed that some of China's biggest state-owned commercial banks will begin raising capital to fund investments into the initiative... which aims to connect more than 60 countries across Asia, Europe and Africa with physical and digital infrastructure. China Construction Bank, the country's second-largest bank by assets, has been conducting roadshows to raise at least 100 billion yuan ($15 billion) from on- and offshore investors, sources familiar with the matter told Reuters. Bank of China, Industrial and Commercial Bank of China, and Agricultural Bank of China are also said to be raising tens of billions of dollars, though none of the banks responded to Reuters' request for comment. The news highlights the risk that the state could amass hundreds of billions of dollars in nonperforming loans if the projects fail."
Financial Times：Trump administration's China IP push puts big tech in a bind
Financial Times comments: "A new initiative from the Trump administration drew a decidedly halfhearted cheer from Silicon Valley last week... The occasion was commerce secretary Wilbur Ross's announcement of an investigation into how China acquires US intellectual property. American companies have long complained about being forced to hand over IP in return for market access, and of losing control of it to outright theft. The fact that the White House salvo did not have tech companies racing to the IP barricades says much about the current state of play in both tech and Sino-US politics. The tech companies that have built a mainland Chinese presence are not eager to risk their position on a political fight with a highly unpredictable outcome. One problem for them is that it is hard to gauge whether the US administration will stay the course. The Trump White House has made much of its willingness to do deals, something that could turn the charges of IP theft into a pawn in a larger negotiation about trade or security. Another consideration is that many tech companies have already made the accommodations required to get a Chinese foothold, for instance by forging partnerships — and handing control — to local companies. Five years ago, the subject of IP was far more likely to arouse a passionate reaction in Silicon Valley. But now, the reality of doing business in China has sunk in."

Calendar

2017-08-23 China demands U.S. immediately withdraw N. Korea sanctions, warns will hit ties
2017-08-22 US targets Chinese, Russian entities funding North Korea's nukes
2017-08-21 Bannon exit provides only temporary relief to China
2017-08-20 China has more to lose in US trade showdown, says report
2017-08-18 China Steps Up Warnings Over Debt-Fueled Overseas Acquisitions
2017-08-17 Steve Bannon, Unrepentant
2017-08-16 U.S. and China Ink Military Agreements; Mattis And His Troop Talk
2017-08-15 Trump administration goes after China over intellectual property, advanced technology
2017-08-14 We're Holding Pyongyang to Account
2017-08-13 China a sweet spot for US companies' earnings in second quarter

News

Commentary

Financial Times Trump administration's China IP push puts big tech in a bind
Bloomberg Balance of Power: China Extends Its Reach
Foreign Policy China Bullies Western Universities Because They Let It
Financial Times China prepares for an era of asymmetric warfare
Foreign Policy Taiwan's Economic Charm Offensive Hits Chinese Walls
The Hill Chinese interest in Jeep reflects intertwined global economy
Vox The US sanctioned China so it would help with North Korea. China defended Pyongyang instead.