BEIJING —  China extended an olive twig, rather than a branch, to the United States in their trade war Wednesday, announcing it would exempt 16 American-made products from tariffs as a sign of goodwill ahead of talks scheduled for next month.

But the gesture, which Beijing said was designed to ease the dispute’s impact on American companies, does not offer relief from tariffs on the big-ticket agricultural products that are causing the most hurt in the United States.

“China wants to claim the moral high ground before the October talks and to send a message of goodwill,” said Yao Xinchao, professor of international trade at the University of International Business and Economics in Beijing. “It’s all about molding public opinion” to portray the U.S. as the aggressor, Yao added.

China’s Ministry of Finance said that 16 types of U.S. products would be exempt from retaliatory tariffs for a year from next Tuesday. The list included varieties of animal feed such as alfalfa and fish meal, cancer drugs gefitinib and capecitabine, base oil for lubricants and lubricating grease, and some farm chemicals.

Further exemptions will be announced in the coming weeks, the ministry said, and tariffs that have already been imposed will be refunded.

But the list offers no respite for American farmers hit by Chinese tariffs on corn, soybeans, and pork.

“Pork and soybeans are two important bargaining chips that China won’t play easily,” said Yao.

[Markets soar as China, U.S. resume trade talks in Washington in October]

China and the United States have been involved in a tit-for-tat tariff battle, imposing rounds of duties on each other’s products for more than a year.

President Trump has hoped that the tariffs would convince China to cave into his demands to re-balance the trading relationship between the world’s two largest economies. But Beijing has retaliated as much as it can — China exports far more to the U.S. than it imports — and has insisted any deal must be “mutually beneficial.”

In the latest episode, the Trump administration declared it would add a 15 percent tax to consumer products from China, including clothing, footwear, pens, pencils, diapers, Bluetooth earbuds, televisions, golf clubs, and fishing line. Those tariffs took effect Sept. 1.

At one point, Trump even ordered American companies to prepare to leave China.

Beijing responded by slapping tariffs on $75 billion of American goods, which in turn led Trump to increase tariffs on $300 billion in Chinese products from the previously announced 10 percent to 15 percent.

Wednesday’s measures marked the first time in the dispute that tariffs have been removed, not added.

[New tariffs on shoes, televisions and other Chinese-made products take effect Sunday ]

The Commerce Ministry said last week that Liu He, the vice-premier who has been leading the trade negotiations from the Chinese side, would travel to Washington in early October for a new round of talks aimed at breaking the impasse.

This will be the 13th round of talks between Liu and his American counterpart, U.S. Trade Rep. Robert Lighthizer.

 A U.S. Chamber of Commerce delegation led by executive vice president Myron Brilliant has been in Beijing this week holding talks with senior Chinese leaders, including Premier Li Keqiang. The tariff dispute has dragged down economic growth and business confidence, Brilliant said after meeting with Li.

“The uncertainty produced by U.S.-China trade tensions is exerting significant downward pressure on both economies,” Brilliant said in a statement. “The time is now to strike a deal that addresses the U.S.’s legitimate concerns about market access, forced technology transfer, subsidies, and digital trade, while concurrently removing punitive and retaliatory tariffs.”

Li, for his part, said the two sides should seek common ground based on the principle of equality and mutual respect, according to a report from China’s state-run Xinhua news agency.

Source: https://www.washingtonpost.com/world/asia_pacific/china-to-remove-tariffs-on-some-us-products-but-not-pork-or-soybeans/2019/09/11/79d45fc0-d459-11e9-8924-1db7dac797fb_story.html?noredirect=on

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U.S. President Donald Trump on Friday sought to ease concerns about his administration’s failure so far to reach a trade deal with China, writing on Twitter that despite a new round of tariffs that went into effect overnight, there is “no need to rush” negotiations with Beijing.

“Talks with China continue in a very congenial manner – there is absolutely no need to rush,” he wrote on Twitter, repeating his false claim “massive payments” from China would be deposited “directly to the Treasury of the U.S.” In reality, tariffs are taxes paid by importers, such as U.S. companies, which bring in products from China. Those costs are typically passed on to consumers in the form of higher prices, which can drive down demand for Chinese imports.

Tariffs on $200 billion in Chinese goods increased to 25 percent at midnight on Friday after negotiations Thursday night failed to reach a deal. U.S. officials had said earlier this week that China “reneged” on its commitments it had previously agreed to.

Talks between Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are set to continue Friday as they work to break the logjam that has resulted in a tit-for-tat tariff war with Beijing that has escalated over the last year.

China has vowed to implement retaliatory tariffs in response to Trump’s move, but its Foreign Ministry also said it would “work together to resolve existing problems through cooperation and consultation.”

“Trump also floated the idea of using revenue from agricultural goods to fund domestic priorities”

Trump, though, signaled that he is perfectly happy to impose tariffs as long as Beijing refuses to accede to his administration’s demands.

“The process has begun to place additional Tariffs at 25% on the remaining 325 Billion Dollars. The U.S. only sells China approximately 100 Billion Dollars of goods & products, a very big imbalance,” Trump wrote Friday.

He said that his administration would offer support for U.S. farmers whose businesses have been crippled by Trump’s trade war with China, proclaiming that the government “will buy … agricultural products from our Great Farmers, in larger amounts than China ever did, and ship it to poor & starving countries in the form of humanitarian assistance.”

Vice President Mike Pence also suggested as much Thursday, saying during a visit to a Minnesota farm that “we have already had preliminary discussions in the White House for additional support for farmers if this impasse with China continues.”

But while Trump expressed confidence that negotiations would get back on track, Trump also claimed that the new tariffs “will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind,” adding that his approach was “much easier & quicker to do.”

He added: “Our Farmers will do better, faster, and starving nations can now be helped. Waivers on some products will be granted, or go to new source!”

Trump also floated the idea of using revenue from agricultural goods to fund domestic priorities like infrastructure or health care.

“If we bought 15 Billion Dollars of Agriculture from our Farmers, far more than China buys now, we would have more than 85 Billion Dollars left over for new Infrastructure, Healthcare, or anything else,” he said, though he did not offer any specifics for his plan. “China would greatly slow down, and we would automatically speed up!”

Still, he added, “in the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!”

He also suggested that there was a simple solution for manufacturers concerned about the penalties: “Build your products in the United States and there are NO TARIFFS!”

Source: https://www.politico.eu/article/trump-trade-war-china-tariffs/

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         If you planned to buy some cheap sporting goods gear or anything else made in China, you might want to hurry to the store.   Trade talks appear to have reached an impasse, reflected by a gyrating stock market this week. It is well known and widely reported that America suffers a $500 billion annual trade deficit with China.   An agreement was all worked out and signed by negotiators for the Chinese, until it was pulled back and rejected by their leadership.   One pundit suggested that those responsible for concluding the arrangement on China’s behalf have been recalled and may well suffer prison or death for their efforts.

President Trump seems to be the exception to widespread panic roiling the pundits and markets. He seems perfectly at ease with the tariffs even threatening to expand them to items currently not covered, such as electronics, and all will be well in the end.   The President believes that China will run out of potential retaliations and be forced to play ball, as the risk to their economy is far greater than any exposure faced by the United States. Trump publicly threatened to do exactly this eight years ago during a brief flirtation with a presidential run. Now he’s making good on that threat.

As North Korea is finding out, President Trump plays hardball.   You probably heard of the North Korean freighter seized in Indonesia carrying coal destined for China in contravention of sanctions recognized and approved by the UN. At least they won’t be using that freighter, their largest,   for clandestine shipments anymore.   Chairman Kim is receiving attention for having fired a series of short-range missiles into the Sea of Japan.   The President’s critics seem thrilled that Kim is “standing up to Trump,” flexing his muscles or whatever. Foreign policy experts are not alarmed.   The short-range tests do not fall into a category of concern over North Korean nuclear capabilities.

Central American aliens continue to flood the Southern U. S. border in   record numbers. Much to our dismay, recent weeks have seen reports of hundreds and thousands being released, destitute, into American society. A court ruling this week indicates that Central Americans can be released back into Mexico to await their asylum cases.   We can only hope that this works out and curtails the wholesale release of people who disappear into the population where many will be supported courtesy of the U. S. taxpayer. Considering the vast scale of deficit spending, it may well be our children’s children who end up carrying the backbreaking debt that’s being run up for the support and care of foreigners in our midst.   If Americans were actually having to pony up the cost of illegal immigration in real time, it might be in a completely different situation.   But the cost is simply going on the tab of U. S. debt.

By now you know that an American carrier group is steaming toward the Persian Gulf. Israeli intelligence got wind of something, maybe even military action, that Iran was planning against American allies or interests in the region.   Time has also run out for nations continuing to buy oil from Iran.   Those nations include China, which buys about half of Iran’s oil, and India, Japan, South Korea and Turkey.   The threat is that any of these nations continuing to buy Iranian oil will be prevented from access to U. S. markets.

Oil revenue is estimated to account for some 40% of Iranian government revenue.   Iran has threatened to ramp up its nuclear program in retaliation, but there’s another hitch. The European Union and its members have continued to uphold the terms of the nuclear deal that President Trump rejected on behalf of the United States.   Iran has been warned by the Europeans that ramping up their nuclear program would violate what’s left of the agreement.   No wonder Iran is considering radical measures, and no wonder the U.S.S. Abraham Lincoln is headed for the Gulf.

There are enough high-level unresolved circumstances around the world to make your head spin. Israel has recently absorbed (or shot down) some 700 rockets killing civilians and destroying property.   They responded with 350 air-strikes in Gaza.   Hopefully they did some good, but the situation is not over and probably never will be.

Britain can’t seem to break free of the EU, yet.   When it finally does, the EU will be in more trouble than it’s in already. The culture has already been radically transformed due to a massive Muslim presence, and its increasing demands. A new mosque, the biggest yet, is about to open in France. There apparently aren’t enough. France already boasts 2,300 mosques with another couple of hundred planned.   There are Muslim incidents of all kinds every day across Europe and in the UK, and nearly all go unreported in our mainstream news.   People are being arrested and charged for perceived insults to the culture enrichers, even just repeating their statements or linking terrorist’s videos for the sake of honest debate.

There are those who seek to rule over us that would like to see the same thing happening right here in the U. S. Maybe you saw that it was an anti-Israel imam who delivered the opening prayer this morning on the floor of the House of Representatives.   We’ve got hideous creatures in headgear lecturing us nearly every day from the Islamic point of view. And they’re elected national “representatives,” courtesy of Obama’s attempted transformation.

We’ve arrived at a time when most all mass media and their advertisers treat the tenets of socialism as conventional wisdom.   Either you agree with their sentiments, or you’re completely out of step with society. The social media giants are busy banning people and organizations that run contrary to conventional dogma, and it’s out of control.   You think the Russians swayed an election?   Look at what Facebook, Twitter, Google and Instagram are doing to silence voices that conflict with socialist doctrines, Obama, Hillary or the Deep State!

The President couldn’t convey any more confidence or calm reassurance than he displays, even in the middle of the whirlwind created by the mainstream media.   The United States is truly the world’s last hope.   If freedom and prosperity are ever lost in the United States, the world will devolve into poverty and a one world government full of bans and mandates, just as the pope hopes. As troubled as they are, these may truly be “the good ole days.”   God promises protection for those that faithfully keep His Laws.   Have a great Sabbath,

Mark

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‘Bully of Asia’ author Steven Mosher on U.S. trade talks with China.

President TrumpOpens a New Window. on Sunday announced additional incoming tariffsOpens a New Window. on China, reminding BeijingOpens a New Window. that its days of negotiating with weak counterparts are over, at least as far as it concerns the United States.

While Trump’s move may cause short-term stock market turbulenceOpens a New Window., it’s great news for U.S. national security and our economy over the longer term. China’s communist government must now recognize that time is short to avoid prolonged pain for its economic aggression and malfeasance.

Specifically, Trump announced on Sunday via Twitter that his administration will increase tariffs on $200 billion worth of imports from China from 10 percent to 25 percent, effective this Friday.

That would mean we will have the higher 25 percent tariff rate on a combined total of $250 billion worth of Chinese imports—46 percent of the $540 billion in goods we imported from China in 2018. Trump also threatened to slap tariffs on the remaining half of imports yet to face higher levies.

China’s ability to retaliate is extremely limited since our trade relationship is so lopsided and stacked in Beijing’s favor: we exported only $120 billion in goods to China last year—less than a quarter of what we imported from them.

Trump took the unexpected action because China is reportedly dragging its feet in trade talks. Beijing has been conditioned over decades to expect American negotiators to cave in on contentious points.

Reprising this pathetic attitude of yesteryear, former Vice President Joe Biden claimed last week that China’s government “is not competition for us” and that “they’re not bad folks.” This thinking is how our elites have rationalized selling out America to China—something Wall Street would like to see continue.

Trump refuses to follow this flawed model, and has held firm in negotiations that cover topics including Beijing’s cyber intrusions, market-distorting subsidies and state-owned enterprises, forced transfer of U.S. business technology, outright theft of intellectual property, currency manipulation, and export of deadly fentanyl.

Most crucially, Trump and his top aides are wise to the fact that the Chinese government has violated every agreement it has made with the United States and our allies. For example, China reneged on promises not to militarize the South China Sea and to stop cyber attacks against us. It also went back on its promise to Great Britain to respect the freedom and relative autonomy of Hong Kong.

Trump is well aware of the high probability that Beijing will cheat on any deal. That is why his negotiators have insisted that U.S. tariffs remain on Chinese goods until they demonstrate changed behavior—not just promise to change as they have in the past.

That has been a sticking point in talks with China’s diplomats, who are used to western leaders accepting a deal for the happy photo op it produces, and then overlooking Chinese noncompliance. Clearly they are used to getting their way. A headline in the South China Morning Post earlier this year boasted: “China’s team of crack trade negotiators will extract their ‘pound of flesh.’”

But Trump has stuck to his guns. Treasury Secretary Steven Mnuchin said last week that the trade team soon would “either recommend to the president we have a deal or make a recommendation that we don’t.”  Increasingly, it looks like the latter conclusion may carry the day given Chinese intransigence and duplicity.

Rather than cave in or walk away, Trump has cranked up the pressure on China with the new tariffs, and given Beijing another chance to understand the old days are over for good. Either they shape up or face the consequences of more economic pain, as they help fill the coffers of the U.S. Treasury through higher tariffs.

Christian Whiton was a senior advisor in the Donald Trump and George W. Bush administrations. He is a senior fellow for strategy and public diplomacy at the Center for the National Interest and the author of “Smart Power: Between Diplomacy and War.”

Source: https://www.foxbusiness.com/economy/trump-new-tariffs-china-trade-war

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Mainland Chinese markets reopened higher after the Lunar New Year break despite a bleak IMF warning over global growth outlook, as efforts to resolve the trade row get under way.

A slew of market-supporting measures intended to assist China’s slowing economy also bolstered investor sentiment.

Top US economic officials will travel to the Chinese capital this week for the third round of talks on Thursday and Friday, but deputies had already arrived and the White House said preparatory discussions were due to begin Monday.

Failure to agree a deal between the two economic superpowers before Mar 1 would see punitive US duties on US$200 billion in Chinese goods more than double.

“There’s a sense of urgency to this round,” said Jeffrey Halley, senior market analyst at OANDA.

Source: AFP/ec

Source: https://www.channelnewsasia.com/news/business/asian-markets-sluggish-before-crunch-trade-talks-11229566

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