China’s latest trade maneuver is worrying. Here’s the story. - February 6, 2018

Media Report

February 06 , 2018

The Washington Post：China's latest trade maneuver is worrying. Here's the story.
The Washington Post reports: "There's a new chapter in the U.S.-China trade tiff. When President Trump slapped tariffs and quotas on billions of dollars of U.S. imports of solar panels and washing machines in January, his targets were China, South Korea and other foreign producers of these goods. China just turned to page 1 of its retaliatory playbook. On Sunday, Beijing announced a self-initiated government investigation into whether about $1 billion of U.S. sorghum exports to its market were dumped or subsidized. The investigation could result in new Chinese tariffs that would hurt U.S. farmers. Beijing's reaction resembles a similar retaliatory move in 2009 — and one that ultimately saw U.S. chicken farmers lose out. If Trump responds by counter-retaliating, matters could quickly escalate beyond U.S. sorghum farmers and pose a far greater threat to both economies, as well as the World Trade Organization (WTO). For all the fanfare surrounding Trump's protectionist rhetoric on trade, the U.S. solar and washing machine tariffs were not without parallel. These tariffs were the result of a legitimate — albeit little-used — provision of U.S. trade law that enables the government to "safeguard" industries adversely impacted by imports under some limited circumstances."
CNBC：Mainland China and Hong Kong shares slide in global sell-off
CNBC reports: "Stock indexes in the greater China region fell significantly on Tuesday, tracking steep losses seen overnight on Wall Street. Hong Kong's Hang Seng Index closed down 5.1 percent at 30,595.42. Meanwhile, the Shanghai composite closed 3.4 percent lower at 3,369.71, posting its steepest loss in two years. The blue-chip CSI300 Index closed 2.9 percent lower at 4,148.33. Markets were already under pressure this week following the pullback in the U.S. market. Risk aversion was high, with bond and gold prices gaining amid the equities sell-off. 'There's really nowhere to hide. If you review the market, across the board, there is very heavy selling pressure,' said Hao Hong, chief strategist at China's Bank of Communications. Hong recommended watching for dangers rather than potential gains in the near-term, although bonds — particularly government bonds — and gold appeared to be safe havens."
The New York Times：China, Elbows Out, Charges Ahead
The New York Times comments: "Not long ago, America and its democratic allies hoped to integrate a rising China into the political and economic system they built after the Cold War. Instead, China is creating its own institutions, or reshaping existing institutions and norms, to suit its own needs. Leaders in many of these countries are watching warily as China encourages the notion that the Chinese model of central economic and political direction could eventually supplant Western democracy and its capitalist system. The Pentagon is so concerned that it named China, along with Russia, America's top security threats for seeking to "shape a world consistent with their authoritarian model — gaining veto authority over other nations' economic, diplomatic and security decisions." It makes perfect sense that the Chinese leader, Xi Jinping, wants to see his country play a greater international role. China enjoys a growing economy, substantial military strength and very stable leadership. But that does not give it license to unilaterally reorder the Indo-Pacific region to its advantage, as the Pentagon asserted. A focused and forward-looking American president would work to counter such moves. President Trump, blinded by Mr. Xi's flattery and blind to history, does nothing except cede more power to Beijing. Mr. Xi, a powerful authoritarian leader, has the advantage of seeming to know where he is leading his country. Mr. Trump, politically weakened and under investigation by the special counsel, vacillates between declaring economic war on China and wanting to be Mr. Xi's friend."

Calendar

2018-02-05 China Opens Inquiry Into U.S. Sorghum as Trade Tensions Worsen
2018-02-04 China Launches Probe Over US Sorghum Imports
2018-02-02 Britain’s May discusses trade barriers with China’s Xi
2018-02-01 China believes in free and fair trade too, Mr Trump
2018-01-31 Don't Fear China's Arctic Takeover
2018-01-30 U.S. companies complain of unfair treatment in China, want pressure but not war
2018-01-29 The Trump team’s idea to counter China with nationalized 5G is just what China would do
2018-01-28 At Davos, the Real Star May Have Been China, Not Trump
2018-01-26 'Globalism with Chinese characteristics' is on display in Davos. But it's not everything it seems
2018-01-25 U.S. imposes more North Korea sanctions; urges China, Russia expulsions

News

Commentary

The Washington Post China's latest trade maneuver is worrying. Here's the story.
The New York Times China, Elbows Out, Charges Ahead
The Hill American naval power: The last great impediment to China's global dominance
Business Day China and Toyota should be made for each other, but they're in different lanes
The Seattle Times Tit-for-tat cycle with China will hurt U.S. economy
The New York Times China's Trade Investigation Takes Aim at Trump's Voter Base
Forbes Banks, Retailers, China Have All Turned On Bitcoin