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Trump's trade war is economic suicide


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Many U.S. firms in China eyeing relocation as trade war bites - survey

SHENZHEN (Reuters) - More than 70 percent of U.S. firms operating in southern China are considering delaying further investment there and moving some or all of their manufacturing to other countries as the trade war bites into profits, a business survey showed on Monday.

U.S. companies operating in China believe they are suffering more from the trade dispute than firms from other countries, according to the poll by the American Chamber of Commerce in South China, which surveyed 219 companies, one-third from the manufacturing sector.

Sixty-four percent of the companies said they were considering relocating production lines to outside of China, but only 1 percent said they had any plans to establish manufacturing bases in North America.

"While more than 70 pct of the U.S. companies are considering delaying or cancelling investment in China, and relocation of some or all manufacturing out of China, only half of their Chinese counterparts share the same consideration," the AmCham report said.

The trade war is shifting both supply chains and industrial clusters, mostly towards Southeast Asia, the survey found.

U.S. companies reported facing increased competition from rivals in Vietnam, Germany and Japan, while Chinese companies said they were facing growing competition from Vietnam, India, the United States and South Korea.

Customers are slowing down orders or not placing them at all, Harley Seyedin, president of AmCham South China, told Reuters.

"It could very well be that people are holding back on placing orders until times are more certain or it could very well be that they are shifting to other competitors who are willing to offer cheaper products, even sometimes at a loss, in order to get market share," he said.

"One of the most difficult things about market share is once you lose it, it is very hard to get back."

Companies in the wholesale and retail sectors have suffered the most from U.S. tariffs, while agriculture-related businesses have been most hit by Chinese measures, the survey found.

The survey was conducted between Sept. 21 and Oct. 10, shortly after the U.S. imposed tariffs on another $200 billion worth of Chinese goods. That prompted Beijing to retaliate with additional tariffs on $60 billion of U.S. products, escalating a tariff war between the world's two largest economies.

The U.S. duties are set to rise sharply on Jan. 1.

Both Washington and Beijing appear to be digging in for a long battle, though U.S. officials say President Donald Trump would go through with plans to meet Chinese President Xi Jinping at the G20 summit next month if it looked like the discussions would be positive.

Nearly 80 percent of the survey respondents said the tariffs have knocked their businesses, with U.S. tariffs having slightly more impact than the Chinese ones.

Around 85 percent of U.S. companies said they have suffered from the combined tariffs, compared with around 70 percent of their Chinese counterparts. Companies from other countries also reported similar impacts as their American counterparts.

The top concern of companies surveyed was the rising cost of goods sold, which resulted in reduced profits. Other concerns included difficulties managing procurement and reduced sales.

One-third of companies estimated the trade dispute had reduced business volumes ranging from $1 million to $50 million, while nearly one in 10 manufacturers reported high-volume business losses of $250 million or more.

Nearly half the companies surveyed also said there had been an increase in non-tariff barriers, including increased bureaucratic oversight and slower customs clearance. Analysts have warned of such a risk to U.S. firms as China is increasingly unable to match U.S. measures on a dollar for dollar basis.

The survey's findings add to evidence that export-reliant Chinese cities and provinces are facing growing strains. Guangdong, China's biggest province by gross domestic product, reported a drop in exports in the first eight months from a year earlier.

https://www.yahoo.com/finance/news/many-u-firms-china-eyeing-100350608.html

 

 

A manufacturing boom for somebody, just not us... What a shame.

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Trump: We expect to reach a great deal with China on trade

Trump: We expect to reach a great deal with China on trade

 30 October 2018 03:08 PM
Directly : President Bush said he believed that there is still the possibility to complete the "big deal" with China on trade, but at the same time warned of the existence of a new tariff ready implementation is not possible to reach a deal with Beijing.

"I think we're going to have a very good deal with China and it should be because they have drained our country," Donald Trump said in an interview with Fox News on Monday.

The US president stressed that he wanted to implement a deal now, "but China is not ready."

Press reports said yesterday that the Bush administration is planning to apply customs tariffs against Beijing in December if President Trump's talks fail with his Chinese counterpart.

Trump is scheduled to meet his Chinese counterpart on the sidelines of the G-20 summit next month.

This year, the United States implemented tariff-related measures against Chinese imports, the first with $ 60 billion and the second with $ 200 billion.

 
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It’s 2005 All Over Again as Ford Teeters on the Edge of Junk

(Bloomberg) -- Ford Motor Co. could be close to getting junked again.

That’s what the bond market is saying. The company’s debt is trading like it’s speculative grade, as investors worry about how higher steel tariffs and slowing sales will weigh on its profits. Ford is rated one step above junk by Moody’s Investors Service and two steps by S&P Global Ratings.

Any downgrade could be painful for bond investors, and for the company. The automaker has more than $150 billion of short- and long-term debt globally, and is one of the 15 biggest corporate bond issuers in the U.S. outside the financial sector. Hedge funds turned in their worst monthly performance in nearly three years in the first part of 2005, when Ford was cut to junk along with General Motors Co.

Bob Shanks, Ford’s chief financial officer, said on an earnings call last month that the company is committed to maintaining its investment-grade ratings, and doesn’t intend to lose that status again. The company is “moving with a sense of urgency and taking proactive steps to redesign and restructure the business,” and over time "the market will recognize our progress,” spokesman Brad Carroll said.

But debt investors are skeptical. The extra yield that money managers get for holding Ford’s 4.346 percent bonds due 2026 rather than similar Treasuries jumped to levels typical of high-yield companies. The cost of protecting Ford’s debt against default using credit derivatives rose in October to the highest levels since 2012 before settling down again. Moody’s downgraded the company in August to one level above junk, and said further cuts are possible in the medium term.

“There’s a better chance than not it ends up in high yield,” said Henry Peabody, a portfolio manager at Eaton Vance Corp. in Boston. “It’s a combination of a fairly weak strategic position, less than ideal strategic decisions over last handful of years, a smattering of overconfidence and where we’re at in the credit cycle.”

Ford is fighting a “multiple-front war,” Peabody said, citing the company’s slowing sales growth in China and higher costs in the U.S. from global trade disputes.

Ford fared better during the financial crisis than GM and the automaker now known as Fiat Chrysler Automobiles NV, avoiding bankruptcy and the government-backed bailouts that its competitors received. But losing its investment-grade status forced Ford to finance itself on a secured basis, essentially putting everything from its inventory to the rights to its oval blue logo in hock.

When Ford reclaimed its investment-grade ratings in 2012, after it cut debt and profits jumped, Chairman Bill Ford announced the upgrade to employees on the public-address system normally used for fire drills in Ford’s Dearborn, Michigan headquarters.

“When we pledged the blue oval it was enormously emotional for me personally and for my family, because we weren’t just pledging an asset, we were pledging our heritage,” Ford said in May 2012. “To get that back feels wonderful and this is one of the best days I can remember.”

New Trouble

Now the company is facing difficulty again. Ford told investors in July it is launching an up to five year overhaul that could cost it $11 billion, as it focuses on higher margin products like trucks and sport-utility vehicles and exits businesses including its U.S. sedans. However, it has provided scant details on the restructuring plan, and has yet to reschedule an investor meeting that was originally set for September.

In the meantime, it’s been in talks with Volkswagen AG to join forces on electric and self-driving vehicles, as both carmakers have been labeled as lagging in developing technology, Bloomberg reported Friday.

Struggling operations in Asia and Europe prompted Ford to cut its 2018 profit forecast. The company posted about a 50 percent decline in earnings for the second quarter, followed by a nearly 40 percent decline in the third quarter.

Its shares last month fell to their lowest level since 2009. Ford’s bonds trade at risk premiums similar to those of junk-rated companies in the auto industry, such as Allison Transmission Holdings Inc. and Dana Inc., and have since Moody’s cut the company to a step above junk in late August, according to Bloomberg Intelligence research. The bonds have rallied recently, but still trade at risk premiums higher than Fiat Chrysler, which is rated junk, and GM, signaling investors believe Ford is a bigger credit risk.

 

One source of support as the company tries to fix itself is its cash position: Ford had around $35 billion of liquidity as of Sept. 30. That’s given comfort to credit raters, who have noted it as a positive. Earnings margins and operational challenges outside the U.S. are top concerns to Moody’s, which rates Ford Baa3. S&P and Fitch Ratings both rate the company one step higher at BBB.

More Cuts?

Ford would need to be cut to high yield by two ratings firms before it fell out of the investment-grade index. Many money managers don’t see that as likely, even if Moody’s decides to cut the company to speculative-grade, said Joel Levington, a former S&P director and now head of credit research for Bloomberg Intelligence. Ford has options for avoiding downgrades, Levington said, including cutting its dividend -- a step the company has insisted it won’t take -- or selling less profitable units.

“To get to the place where you’re talking about two rating agencies going to high-yield, you’re saying not only is the company a basket case, but that it isn’t doing anything to stave off either of those actions,” Levington said. “I wouldn’t assign a high probability around that.”

Read more in the credit brief: Musk Divides Wall Street With SpaceX Demands

To some money managers, current trading levels represent an attractive buying opportunity. The company’s bonds pay high yields and the credit quality is relatively high, said Matt Brill, senior portfolio manager at Invesco Ltd.

“Ford generates a lot of cash flow and they have so much more flexibility than they did a decade ago,” with regard to costs, he said.

But bond analysts caution that the debt is by no means a slam-dunk investment. Carmakers are cyclical businesses, and as the Federal Reserve raises rates, increasing financing costs for consumers, vehicle sales aren’t likely to improve much, if at all, from here.

“Autos were always the light that everyone’s looked to in this post-recession era,” said Jody Lurie, a corporate credit analyst at Janney Montgomery Scott LLC. “I don’t think investors are looking at them on that momentum story that they once had, or looking at them as the beacon of hope that they once were.”

https://finance.yahoo.com/news/2005-over-again-ford-teeters-110001455.html

 

 

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Producer Prices in U.S. Increase in October by Most Since 2012

(Bloomberg) -- U.S. producer prices rose more than forecast in October for the biggest jump in six years on broad gains in costs for goods and services, a Labor Department report showed Friday.

The producer-price index rose 0.6 percent from September after a 0.2 percent advance, and climbed 2.9 percent from a year earlier after a 2.6 percent gain. Excluding food and energy costs, the core PPI readings were also up more than forecast, rising 2.6 percent from October 2017 and 0.5 percent from the prior month.

Key Insights

The figures, which measure wholesale and other selling prices at businesses, indicate that price pressures in the production pipeline are advancing steadily. Along with solid demand, the tariff war with China has raised concern that producers will face rising prices and supply-chain disruptions for materials. The Federal Reserve on Thursday reiterated its plan to keep lifting interest rates gradually. The main PPI results exceeded the median estimates in a Bloomberg survey of economists calling for a 2.5 percent annual increase and a 0.2 percent month-over-month rise. The Bloomberg survey median was for a core monthly advance of 0.2 percent and 2.3 percent annual gain.Producer costs excluding food, energy, and trade services, a measure some economists prefer because it strips out the most volatile components, rose 0.2 percent from the prior month, and rose 2.8 percent from a year earlier following a 2.9 percent gain.While the consumer price index -- due next week -- is considered a more important indicator of inflation, data on producer prices help provide insights into the direction of input costs that businesses are facing. Analysts watch this data to assess how likely it is that gains will filter through on to consumers.

Markets

Treasuries pared gains after the report. The benchmark 10-year note yielded 3.22 percent, up from as low as 3.2 percent earlier Friday.

Get More

The PPI report also showed the cost of goods climbed 0.6 percent, the biggest gain since May. Services prices increased 0.7 percent, the most since January 2016. About three-fourths of the increase reflected higher margins for wholesalers and retailers, the report showed.Energy goods prices jumped 2.7 percent from the prior month, while food costs rose 1 percent.

https://finance.yahoo.com/news/producer-prices-u-increase-october-133001184.html

 

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China calls for open world economy and accelerating trade agreement

China calls for open world economy and accelerating trade agreement
 
 

12 November 2018 03:42 PM
Directly: President of the Chinese government revealed that his country plans to make its economy more open to the face of growing protectionism, with an emphasis on steps to accelerate the completion of a new trade agreement.

Chinese Prime Minister Lee Keqiang's remarks came as he arrived in Singapore on Monday for a meeting with Asia-Pacific leaders, which will focus on accelerating a new trade deal, according to Reuters, quoted by the Straits Times newspaper, In Singapore.

The prime minister of the world's second-largest economy said China had opened its doors to the world, saying it would never be closed but would be opened on a larger scale.

Lee called for an open global economy in the face of increased and unilateral protectionism, but he did not refer directly to China's trade war with the United States.

China will work with all concerned to speed up negotiations on a regional comprehensive economic partnership, which will be presented as a free trade deal involving more than a third of world GDP, the prime minister said.

The agreement includes 16 countries including ASEAN, Australia, China, India, Japan, New Zealand and South Korea, but not the United States.

A notable absentee from this week's meetings is US President Donald Trump, who said many of the existing multilateral trade deals were unfair while China denounced the theft of intellectual property, barriers to American companies and massive trade deficits.

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Manufacturing leader on China: Trump 'has gotten their attention

After hitting another roadblock on trade negotiations last month, the U.S. and China have resumed discussions ahead of the widely-anticipated G-20 summit at the end of this month in Argentina.

The trade war between the two feuding nations has affected industries globally, but Jay Timmons, president and CEO of the U.S. National Association of Manufacturers (NAM), says that the Trump administration’s firm stance on trade could bring about progress sooner rather than later.

“The faster we can get to the negotiating table with China, the better it is for everybody in all sectors of the economy,” Timmons told Yahoo Finance at the All Markets Summit on Tuesday. “Getting [China] to play by the rules that every other country or every other developed economy is playing by is going to be really important. The rest of the world has a lot to gain as well, and we’re hopeful that other countries will weigh in in a positive way.”

‘What the president has done has gotten their attention’

Timmons explained that many presidents have tried but failed to get China to practice fair trade. Nevertheless, while the current administration’s methods may be unconventional, it is on the right track, said Timmons.

“Talking hasn’t worked, and it hasn’t worked for three administrations. So I can’t tell you if there’s a better solution to get China’s attention, [but] I can tell you that what the president has done has gotten their attention,” Timmons said.

2bf3f2615cbbbb7ea6ee32d0ce848df0 U.S. President Donald Trump, right, chats with Chinese President Xi Jinping during a welcome ceremony at the Great Hall of the People in Beijing. China said Friday, Oct. 12, 2018. Photo: (AP/Andy Wong)

The meeting between Trump and Xi will be a closely-watched affair. as many hope the two nations will be able to make significant progress toward negotiations. In September, the White House announced a plan to increase tariffs on over $200 billion worth of Chinese goods from 10% to 25% effective January 1, 2019.

And while Beijing has not put forth a formal proposal yet, Timmons expressed concern that if the trade war intensifies and no further progress is made, manufacturing businesses could continue to be pushed out of business.

“We have complained about [unfair trade practices] as American citizens, as government officials and certainly the manufacturing sector. We’ve complained about the theft of intellectual property, which has not only cost potentially billions of dollars in stolen intellectual property, but some manufacturers have actually gone out of business because they couldn’t compete.”

He added, “I will not sit here and say tariffs are good … [but] I think they’re on the right track.”

https://www.yahoo.com/finance/news/president-trump-right-track-china-214522988.html

 

 

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Walmart is no fan of Trump's trade war with China

It was an impressive third quarter for retail giant Walmart, with one caveat. President Donald Trump’s yawning trade war with China could crimp the retailer’s bottom line in 2019.

“Tariffs are not positive for the economy,” Walmart Chief Financial Officer Brett Biggs told Yahoo Finance on a media call Thursday. “Prices [for consumers] will go up.” Biggs said the company is looking at taking action should higher tariff rates go into effect in January.

The Trump administration enacted 10% tariffs on $200 billion worth of Chinese goods on Sept. 24. On Jan. 1, 2019, the rates will increase to 25%. Most retailers see their fourth quarters end in January. So for a global retailer such as Walmart, which sources a good number of products from China — and does business in the country  — higher tariff rates could quickly hit profits. 

Walmart (WMT) operates 426 retail stores in China. By some estimates, Walmart sources more than $49 billion in goods from China a year.

Walmart shares dropped about 2% on Thursday’s session. While investors temporarily lock in on Walmart’s tariff exposure, they are ignoring a retailer with considerable momentum into the critical holiday shopping season.

The world’s largest retailer said Thursday that third-quarter earnings came in at $1.08 a share adjusted, beating analyst forecasts of $1.01. Total revenue clocked in at $124.89 billion versus forecasts for $125.55 billion. Walmart lifted its full-year U.S. same-store sales guidance to “at least” 3% from “about” 3% previously. Earnings are now seen in a range of $4.75 to $4.85 a share compared to $4.65 to $4.80.

Walmart saw strong sales gains at its two key U.S. businesses. Walmart’s U.S. same-store sales, a key retail industry metric, rose 3.4%. Sam’s Club, which tends to skew toward a higher income customer, notched a 3.2% same-store sales increase. The division’s e-commerce sales gained 32%.

The momentum suggests that Walmart could navigate higher tariffs better than most despite Wall Street fears.

https://finance.yahoo.com/news/walmart-no-fan-trumps-trade-war-china-171636314.html

 

 

Well I guess Wal-Mart is out for Trump supporters...

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Automaker groups warn U.S. tariffs will undermine new NAFTA deal

WASHINGTON (Reuters) - U.S. automakers and parts suppliers on Thursday urged the Trump administration to end steel and aluminum tariffs on Mexico and Canada and warned that potential U.S. national security tariffs on automotive imports would lead to widespread job losses.

In testimony at a U.S. International Trade Commission hearing on the deal to replace the North American Free Trade Agreement, several automotive trade groups said automotive side letters to the agreement indicated that imposition of such tariffs were inevitable.

And the failure of the new U.S.-Mexico-Canada Agreement (USMCA) to lift steel and aluminum tariffs have also cost the industry billions of dollars and trade turmoil in general has paralyzed investment decisions, they said.

"The current state of play on trade has placed our industry in turmoil. In the last year our members have faced section 232 steel and aluminum tariffs, other Section 232 tariffs proposed, and Section 301 tariffs on goods from China," said Ann Wilson senior vice president of government affairs at the Motor and Equipment Manufacturers Association.

The Trump administration is considering recommendations from the Commerce Department on whether to impose tariffs on national security grounds under Section 232 of the Trade Expansion Act of 1962. No decisions have been made, but President Donald Trump has frequently threatened to impose 25 percent tariffs on autos and parts to pressure the European Union and Japan to make trade concessions to the United States.

"If implemented, increased auto tariffs would not only undermine the potential success of the USMCA, they would also pose a material threat to the economy and may result in the loss of as many as 700,000 jobs across the U.S.," said Jennifer Thomas, vice president of government affairs for the Alliance of Automobile Manufacturers.

John Bozzella, president of the Association of Global Automakers, which represents foreign brand automakers with U.S. plants, said the USMCA's inclusion of duty-free import quotas for Mexico and Canada in the event such tariffs are imposed suggests that it is a "foregone conclusion" that Trump will impose them.

"The threat of additional tariffs on autos and auto parts under the section 232 investigation that Commerce is conducting hangs like a sword over our industry and complicates any assessment of the USMCA," Bozzella said.

"In our view, there is no credible justification for the idea that automotive imports threaten our national security – in fact, the growth of international automakers in the United States during the past quarter century proves otherwise."

 

DETROIT VS FOREIGN BRANDS

There also was a divergence of views among domestic and foreign automakers on the overall benefits of the USMCA agreement, which requires autos to have 75 percent regional content and at least 40 percent from the United States or Canada.

Bozzella expressed concern that the "many layered" content requirements would hurt automakers' competitiveness by requiring "unnecessary" supply chain shifts and investment in compliance.

Matt Blunt, president of the American Automotive Policy Council, which represents Detroit automakers General Motors, Ford and Fiat Chrysler described the trade deal as "workable" for these companies which have larger U.S. manufacturing footprints than their competitors.

He said it would not require massive manufacturing and supply chain changes immediately, but over time, automakers would need to consider changes in where they build cars and major components.

"While the new rules will present some challenges for our industry, we believe the (Trump) administration included sufficient flexibilities that will help our automakers remain competitive while they successfully transition to the new, more stringent rules of origin included in the USMCA," Blunt said.

Blunt estimated, however, that higher steel and aluminum costs due to tariffs mean that it costs about $400 more to produce a vehicle in the United States than it does to make them elsewhere with foreign metals.

https://finance.yahoo.com/news/automaker-groups-warn-u-tariffs-undermine-nafta-deal-181301285--finance.html

 

 

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The United States, Canada and Mexico sign a new trade agreement at the 20th summit

The United States, Canada and Mexico sign a new trade agreement at the 20th summit
 

 30 November 2018 04:33 PM
Direct: US President Donald Trump signed a new trade agreement with Mexico and Canada during the Group of Twenty summit in Argentina in the update for "NAFTA".

"This is a model agreement that will change the business landscape forever," the US president said at the G20 summit on the trade deal on Friday.

The new agreement, known as the United States, Mexico and Canada, replaces the North American Free Trade Agreement (NAFTA).

The signing of the new trade agreement between the three countries after more than a year of negotiations against Trump's desire to amend the rules of trade between North American countries.

President Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto signed the new agreement in the Argentine capital Buenos Aires today.

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US President Donald Trump, who said many of the existing multilateral trade deals were unfair while China denounced the theft of intellectual property, barriers to American companies and massive trade deficits.  From Yota's article, Nov 12th

 

It's real simple, China wants it all and we are telling them, NO MORE!!!  No more intellectual theft!!!!

 

Come on Multinationals, move your factories to Vietnam and watch those Dongs grow,,,,, in value

 

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S & P and NASDAQ record the best weekly performance in 7 years

S & P and NASDAQ record the best weekly performance in 7 years
 
 01 December 2018 12:36 AM
Direct : US stocks rallied at the end of trading on Friday, with the anticipation of the G20 summit talks, to record strong weekly and monthly gains.
 
Boeing and Caterpillar led the Dow Jones Industrial Average, rising 4.2% and 1.2%, respectively.
 
Investors are eyeing US President Donald Trump's meeting with his Chinese counterpart with hopes of a trade deal between the two sides to avoid trade disputes.
 
Expectations have grown with US President Donald Trump remarks that there are some good signs in trade talks with China.
 
In official data, Chicago's economic activity grew to an 11-month high.
 
At the end of trading, the Dow Jones rose by 0.8% to 199.6 points to 2,538.4 points, recording weekly gains of 5.1%, the best weekly performance since 2016, and a monthly gain of 1.7%.
 
Standard & Poor's climbed 0.8% to 2,760.1 points, up more than 5% this week and 1.8% this month.
 
While NASDAQ recorded weekly and monthly gains of 3% and 1.8%, respectively, after closing up 0.8% at 7,330.5 points.
 
The Standard & Poor's and NASDAQ indexes gained their weekly best weekly performance in seven years.

 

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11557.jpg
US President Donald Trump shakes hands with his Chinese counterpart Xi Jinping in Beijing in the form of Reuters
  

 Arab and international


Economy News Baghdad

China and the United States have agreed to stop imposing new tariffs with the two countries conducting trade talks aimed at reaching a deal within 90 days, the White House said after talks in Argentina between US President Donald Trump and Chinese President Xi Jinping.

The White House said Trump agreed not to increase tariffs on Chinese goods worth $ 200 billion to 25 percent from January 1 as previously announced, and China agreed to buy an unspecified but "very large" amount of agricultural, industrial, Other.

The White House also said China was "ready to approve the Qualcomm (American Communications Systems) deal, which had not been previously approved if it was resubmitted."

If no agreement is reached within 90 days with China on trade issues including technology transfer, intellectual property, non-tariff barriers, electronic theft and agriculture, the two sides agree to increase tariffs of 10 percent to 25 percent, the White House said.


Views 19   Date Added 12/02/2018

 
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BUENOS AIRES, Argentina — Leaders of the Group of 20 agreed Saturday to fix the world trading system after difficult, all-night talks in the Argentine capital, but only 19 of them agreed to support the Paris accord on fighting climate change with the United States the lone holdout.

 

The official summit statement acknowledges flaws in global commerce and calls for reforming the World Trade Organization. It doesn't mention the word "protectionism," however, after negotiators said that had met resistance from the United States.

 

Applause broke out in the summit hall as the leaders, including U.S. President Donald Trump, signed off on a final statement at the end of a two-day summit.

The non-binding agreement was reached after talks by diplomats stretched overnight and into daylight on Saturday, amid deep divisions between member nations.

 

European Union officials said the United States was the main holdout on nearly every issue. Trump has criticized the WTO and taken aggressive trade policies targeting China and the EU.

But China also pushed back in talks on steel, South Africa objected to language on trade, Australia didn't want the statement to be too soft on migration and Turkey worried it would push too far on climate change, according to the officials.

A senior White House official said the joint statement meets many U.S. objectives and stressed that it includes language about WTO reform. The official also noted other elements such as language on workforce development and women's economic development and a commitment by China to doing infrastructure financing on "transparent terms."

 

According to the official, the language on climate was necessary for Washington to sign on, and Turkey, Saudi Arabia and Russia had appeared sympathetic to the U.S. position but ultimately stayed with the other countries.

1x1.png

With trade tensions between the U.S and China dominating the summit, the Europeans sought to play mediator. They also scaled back their expectations, cutting out mention of rising protectionism — mainly aimed at Trump.

 

The final language of the statement says, regarding climate, that 19 nations that are signatories to the Paris accord reiterate their commitment to it while the U.S. reiterates its decision to withdraw. It also notes a recent U.N. report that warned damage from global warming will be much worse than previously feared, and expresses support for an upcoming U.N. climate meeting in Poland meant to nail down how countries will meet promises made in the Paris accord.

 

On global commerce, the statement says the 20 countries support multilateral trade but acknowledge that the current system doesn't work and needs fixing, via "the necessary reform of the WTO to improve its functioning."

 

On migration, European officials said the U.S. negotiator said too much talk about it would have been a "deal-breaker" for Trump. So they came up with "minimalist" language that acknowledges growing migrant flows and the importance of shared efforts to support refugees and solve the problems that drive them to flee.

 

The statement also shows a commitment to a "rules-based international order," despite Trump's rejection of many of those rules.

 

Gotta Love Trump the guy is solid.

https://www.nbcnews.com/news/world/g-20-nations-agree-trade-migration-not-climate-change-n942601?cid=sm_npd_nn_tw_ma

 

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Trump to Hold Off on Tariff Hikes Against China, Negotiations Continue

The White House announced Saturday that President Trump has agreed not to further raise tariffs on $200 billion worth of Chinese imports from ten percent to 25 percent as he had previously threatened, after a dinner meeting at the G-20 summit with Chinese President Xi Jinping.

In exchange, China will agree to purchase a “not yet agreed upon, but very substantial” amount of agricultural, energy, industrial, and other product from the U.S., to reduce the trade imbalance between the two countries, White House Press Secretary Sarah Sanders said in a statement.

 

China has agreed to start purchasing agricultural product from our farmers immediately, it said.

https://www.breitbart.com/politics/2018/12/01/trump-to-hold-off-on-tariff-hikes-against-china-negotiations-continue/

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China: We will work with the United States towards the abolition of all customs duties

11:55 - 03/12/2018

 
image
 
 

Follow - up - the balance News 
said Chinese Foreign Ministry said on Monday that the Chinese and US presidents have issued directives to officials concerned with the economy in both countries to work towards the abolition of all customs duties, after a meeting in Argentina during which the two presidents agreed to a truce in a trade war between the two countries. 
Chinese Foreign Ministry spokesman Geng Shuang said during a daily briefing in Beijing

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China: Trade talks with Washington are very successful

China: Trade talks with Washington are very successful

 05 December 2018 11:14 AM
Direct said the Ministry of Commerce in China , said the trade talks , which was held with the United States last weekend in being very successful, pledging to implement some of the agreed plans quickly.

The trade and economic groups of the two countries will actively promote the advisory work within 90 days, according to a timetable and a roadmap, the spokesman of the Ministry of Commerce said in a statement on its website on Wednesday.

Earlier this week, the United States and China reached a truce that would stop further tariffenforcement and discuss ways to conclude a joint trade agreement .

China has also agreed to buy an amount that is not agreed, but is very large of agricultural, energy, industrial and other products from the United States to reduce the trade imbalance between the two countries.

However, Donald Trump warned yesterday of the failure of a trade deal between his country and China, describing himself as a "man of tariffs."

"I'm the definitions man, when people or nations want to plunder the wealth of our great nation, I want them to pay for it," said Trump.

 
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Report: China has begun preparations for the resumption of soybean imports from Washington

Report: China has begun preparations for the resumption of soybean imports from Washington

 05 December 2018 11:58 p
Direct : press report revealed that China has begun to prepare for the re - import soybeans LNG from the United States and the gas signal that the two countries want to improve joint trade relations.

Sources familiar with the matter told Bloomberg's unnamed agency on Wednesday that Chinese officials had been ordered to take necessary steps on procurement, but it was not clear whether those preparations meant China would cut the tariffs it had applied.

In April, China announced a 25 percent tariff on imports from the United States, which included soybeans.

China agreed this week to buy an unplanned, but very large amount of agricultural, energy, industrial and other products from the United States to reduce the trade imbalance between the two countries.

This comes within the framework of the agreement between China and the United States on a three-month trade truce to discuss ways to reach a trade agreement.

In October, China's imports of soybeans from the United States fell 95 percent year-on-year.

A spokesman for China's Ministry of Commerce said Monday that talks between his country and Washington over the weekend were "very successful."

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China's UNIPEC buys US oil after Shi and Trump truce

11:42 - 05/12/2018

 
image
 
 

Follow - up - the balance News 
said three sources familiar with the Chinese oil trading company Aonepk plans to resume US crude shipments to China by March after US presidents played down the agreement and the Chinese during the Group of Twenty summit the possibility of imposing customs duties on these imports. 
The sources said Loretters said that UNIPEC is considering the import of US oil by March 1 at the end of the 90-day negotiation period agreed upon by the two presidents. 
China's imports of US crude oil have been halted by the escalating trade war between the two countries this year

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***///

 

Trump has the Chi-Coms on the ropes....

 

They're squealing like a little pig....

 

Won't be long now....

 

TRUMP:  "We are either going to have a REAL DEAL with China, or no deal at all -

                 at which point we will be charging major Tariffs against Chinese product being

                 shipped into The United States. Ultimately, I believe, we will be making a deal -

                 either now or in the future..."

 

So The DOW drops 800 points in the interim....  can't believe THOSE guys are blinking...

Oughtta know by now they shouldn't flinch whilst Trump is still in the fight ! ;)

 

 

 

.

Edited by SgtFuryUSCZ
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Trump: China has returned to the market and is buying huge amounts of soybeans

Trump: China has returned to the market and is buying huge amounts of soybeans
 

 12 December 2018 01:44 PM
Direct US President Donald Trump said that China buys huge amounts of soybeans from his country, and they are returning to the market again.

Trump told Reuters news agency on Tuesday that China had just begun to return to the market, while stressing the possibility of a second meeting with Beijing.

On the expected meeting, the US president said he will include leaders from both countries.

Last week, China and the United States agreed to a 90-day trade truce in which they stopped applying any new tariffs and discussed ways to reach a trade deal.

The past period has seen threats from the US President to apply customs tariffs against China and wanted $ 267 billion.

Trump explained that if necessary, he would hold another meeting with his Chinese counterpart, "whom I love and understand very much."

With regard to the possibility of applying tariffs on US car imports from the EU and Japan, Trump stressed that this would depend on the outcome of trade negotiations.

"If it does not go well, tariffs will be one of the options we will resort to," he said.

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The Latest: Trump ” says developments in US-China trade

 December 11, 2018  
US-China.jpg

FILE - In this Sept. 16, 2018, file photo, a driver looks out from his trishaw decorated with an American flag and Chinese flags in Beijing. China's economy czar and the U.S. Treasury secretary discussed plans for talks on a tariff battle, the government said Tuesday, Dec. 11, 2018, indicating negotiations are going ahead despite tension over the arrest of a Chinese tech executive. (AP Photo/Andy Wong, File)

 

WASHINGTON (AP) — The Latest on the back and forth between China and the U.S. over trade, technology and the arrest of an executive of the Chinese network gear company Huawei Technologies. (All times local):

11 a.m.

President Donald Trump is hinting that “important announcements” are coming regarding ongoing trade discussions between the U.S. and China.

He didn’t elaborate, but White House counselor Kellyanne Conway cited news reports that China appears to be moving toward reducing tariffs on cars made in the U.S. to 15 percent from 40 percent.

Trump agreed on Dec. 1 to postpone more U.S. tariff hikes on Chinese goods for 90 days while the two sides negotiate over American complaints about Beijing policies.

Trump tweeted Tuesday that conversations between the world’s largest economies have been “very productive.”

China’s government says its economic czar and the Treasury secretary have discussed plans for the next round of trade talks. Stock markets around the world jumped on news that the trade war may be easing.

_______

5:20 p.m.

China’s foreign minister has vowed to defend its citizens abroad as a Chinese technology executive waits to see whether a Canadian court will release her on bail in a case that has strained U.S.-Chinese relations.

Foreign Minister Wang Yi said Tuesday that Beijing will “spare no effort” to protect against “any bullying that infringes the legitimate rights and interests of Chinese citizens.”

Wang didn’t mention the arrested Huawei Technologies Ltd. executive, Meng Wanzhou. But a ministry spokesman, Lu Kang, said Wang was referring to cases of all Chinese abroad, including Meng.

Meng was arrested Dec. 1 in Vancouver on U.S. charges related to possible violations of trade sanctions on Iran.

___

11:50 a.m.

China’s government says its economic czar and the U.S. Treasury secretary have discussed plans for the next round of talks in a tariff battle following a temporary cease-fire.

The Commerce Ministry’s announcement Tuesday suggests negotiations are going ahead despite tension over the arrest of a Chinese technology executive.

A ministry statement said Vice Premier Liu He and Treasury Secretary Steven Mnuchin discussed “the promotion of the next economic and trade consultations” but gave no details.

President Donald Trump agreed on Dec. 1 to postpone more U.S. tariff hikes on Chinese goods for 90 days while the two sides negotiate over American complaints about Beijing technology policy.

The arrest in Canada last week of a Huawei Technologies Ltd. executive prompted worries those talks might be derailed.

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