China-US rivalry on brink of becoming a ‘financial war’, former minister says

The growing rivalry between China and the United States is at risk of becoming a “financial war”, a former Chinese finance minister said on Saturday.

Speaking at an industry forum in Beijing, Lou Jiwei, chairman of the foreign affairs committee of the Chinese People’s Political Consultative Conference (CPPCC) National Committee, said that despiten the compromises the two countries were trying to reach on trade, the dispute was likely to roll over into other areas.

“The next step in the frictions between China and the United States is a bfinancial war,” he said. “It is characterised by the use of long-arm jurisdiction, by various excuses to block specific enterprises, such as the bans on ZTE and Huawei.”

Read more at: China-US rivalry on brink of becoming a ‘financial war’, former minister says | South China Morning Post

France: Trump trade war: Macron pushes for EU deals in China

A French presidential adviser said it's time for China to prove its openness to trade with "progress on the EU-China deals." European businesses have long complained of restricted access to China's market.

Read more at:
https://www.dw.com/en/trump-trade-war-macron-pushes-for-eu-deals-in-china/a-51101055

EU - US relations: US can expect counter measures after tariff move

The EU said Friday it "regrets" the US decision to impose tariffs over the WTO's ruling on illegal subsidies to aircraft manufacturer Airbus.

It leaves the EU with "no alternative but to follow through in due course with our own tariffs" in a similar case involving Boeing, trade commissioner Cecilia Malmstrom said . "The European Commission is committed to defending European companies, farmers and consumers," she added.

Read more at: EU: US can expect counter measures after tariff move

EU-US Trade War: A flood of new data from the US and eurozone suggests recession risks are flashing red. Here's a full rundown of the wreckage - by Ben Winck

Key economic metrics are flashing red for the US and the European Union as tensions between the two reach new highs.

The latest readings from prominent purchasing managers' indexes show manufacturing sectors the US and EU struggling amid global trade conflict and slowing economies. Service and non-manufacturing industries also slowed through September in both areas.

The negative signs arrive after the WTO granted the US permission to levy $7.5 billion in tariffs on EU imports, specifically targeting Boeing competitor Airbus.

Further escalation of trade conflict between the bloc and the US could plunge the two economies into deeper economic woes.

Read more at: A flood of new data from the US and eurozone suggests recession risks are flashing red. Here's a full rundown of the wreckage. | Markets Insider

US Trade War with China: Trump says he's poised to escalate China trade war within hours - by Joshua Gallu

President Donald Trump signaled he may escalate the trade war with China in the coming hours after the country’s latest round of tariffs, firing off a new demand that U.S. companies seek alternatives to producing goods in China.

“I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States,” Trump tweeted Friday, after China threatened to impose additional tariffs on $75 billion of American goods, including soybeans, cars and oil.

A meeting on trade was taking place at midday in the Oval Office at the White House, according to people familiar with the discussions. Trump is scheduled to leave late Friday for the G-7 summit in France, where trade tensions and their impact on the global economy are at the top of the agenda.

Read more: Trump says he's poised to escalate China trade war within hours

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China-US relations: Tariff issues continue to be sticking points as both China and US continue their haggling in trade war talks

"U.S., China haggle over toughest issues in trade war talks" -

Read more at:

http://www.reuters.com/article/us-usa-trade-china/u-s-china-haggle-over-toughest-issues-in-trade-war-talks-idUSKCN1QA2NH

USA Economy: Dow Slumps on Trump Trade War Escalation

Stocks on Wall Street closed sharply lower and global stocks tumbled on Wednesday, July 11, following the latest escalation in trade war rhetoric from the White House, which published a list of $200 billion worth of China-made goods it said will be hit with fresh tariffs.

The list, which includes products across sectors such as consumer technology, agriculture and automobile parts and equipment, came just days after Donald Trump unveiled $34 billion in tariffs on Chinese goods that were immediately reciprocated by Beijing.

"For over a year, the Trump administration has patiently urged China to stop its unfair practices, open its market, and engage in true market competition," U.S. Trade Representative Robert Lighthizer said in a statement. "Rather than address our legitimate concerns, China has begun to retaliate against U.S. products ... There is no justification for such action."

China's Commerce Ministry said Wednesday that the latest tariff threat was "bad for China, the U.S. and the rest of the world" and promised to retaliate with both "quantitative and qualitative" measures.

Read more: Dow Slumps on Trump Trade War Escalation - TheStreet

China - US relations: Trade War Kicks off this week

China says "fully prepared" if trade war kicks off this week

For the complete report go to:

http://flip.it/x0YnUr

The Netherlands: Trump's Muslim ban casts shadow over Dutch PM's visit to U.S. - by Janene Pieters

Prime Minister Mark Rutte is visiting the United States and meeting with Donald Trump on Monday. Rutte plans to announce that the Netherlands will again negotiate establishing American customs personnel at Schiphol. But the D66 fears that Trump's so-called Muslim ban will mean that American customs officers will deny Muslims access to the U.S. on Dutch soil, AD reports.

Coalition party D66 is therefore calling on Rutte to under no circumstances take steps that could make the Netherlands complicit in this entry ban. D66 parliamentarian Sjoerd Sjoerdsma calls the entry ban discriminatory and against the core values of the Netherlands and the Dutch constitution. "Enforcing the Muslim ban on Dutch soil is too crazy for words", Sjoerdsma said, according to the newspaper. "I now expect the government to reflect again and to not take any irreversible steps in this area."

For BBC report on actual visit click here. 

Read more: Trump's Muslim ban casts shadow over Dutch PM's visit to U.S. | NL Times

EU-US Relations: Trump Tariffs: Europe hits back at Trump's tariffs as global tensions mount

The European Union's retaliatory tariffs on US products came into force on Friday, the latest shots fired in what increasingly looks like a global trade war.

The EU, the world's largest trading bloc, imposed levies on 2.8 billion euros (S$4.4 billion) of American products in response to US duties on its steel and aluminum exports that were justified on national security grounds.

"We did everything we could to avoid this situation, but now we have no choice but to respond,'' said EU Trade Commissioner Cecilia Malmstrom. "It is frankly ridiculous that EU steel is considered a threat to US national security. As longstanding allies of the US, we were disappointed, but not surprised.''

The European reaction opens up another front in Washington's battle to reshape its commercial relationship with the world. President Donald Trump has levies on US$250 billion of Chinese goods in the pipeline and already placed duties on products from allies including Canada, Mexico and Japan..

Note EU-Digest: Maybe the time has come for Europe to start playing some "hardball" with Trump, and suggest to him it will stop buying military equipment from the US, that it wants to review NATO antiquated policies, its global strategies, and the need for European nations to participate, and pay for controversial US controlled missions around the world.  Most of which have resulted in failure, and a large influx of refugees into the EU and Turkey. 

Read more: Europe hits back at Trump's tariffs as global tensions mount, Government & Economy - THE BUSINESS TIMES

EU-US Relations - Trade Tariffs: Maine will be among hardest-hit states if EU retaliates against Trump's tariffs - by Steve Collins

Augusta,  ME's State capital, also ranked by WalletHub as one of America's saddest cities

The Portland Press in Maine recently reported that a new Brookings Institution report found that Maine would be one of the hardest-hit states if the European Union takes retaliatory measures in response to President Trump’s new tariffs on aluminum and steel imports.

The report found that 9.5 percent of Maine’s exports to Europe would be slapped with retaliatory tariffs if the Trump administration declines to grant an exemption to EU countries exporting metal to the U.S. The state average was roughly 3 percent of exports.

The proposed new tariffs against American products would affect about $39 million worth of Maine exports to the EU, Brookings found, out of a total of $405 million last year
.
The Europeans are considering possible tariffs on everything from cranberries to T-shirts. It’s not clear from the report exactly what Maine industries might take a hit.

It also isn’t certain whether the administration will offer exemptions for European steel and aluminum. If it refuses, the EU has said it will impose new tariffs on American products in response, a first step in what could become a trade war.

The impact of higher prices on American products might be fewer export sales of targeted U.S. goods such as rear-view mirrors, sweet corn and whiskey. U.S. Sen. Susan Collins, a Maine Republican, is skeptical about the tariffs sought by Trump.

“I share the president’s belief that there have been many poorly negotiated trade agreements that have harmed manufacturing jobs in Maine and across our country,” she said in a prepared statement recently. “In the northern half of our state in particular, we have seen many pulp and paper mills close within the last five years, putting thousands of Mainers out of work through no fault of their own.”

“Addressing unfair trade practices, however, requires a careful approach in order to avoid triggering retaliation from other countries,” Collins said. “These tariffs could very well produce the opposite effect of what the president is trying to achieve, inadvertently causing further harm to American jobs and increasing the prices of consumer goods.”

She urged Trump “to work with Congress and our allies to address anti-competitive behaviors in order to protect our manufacturing industry and promote economic growth.”

Brookings is a century-old policy research think tank in the nation’s capital that issues studies on many issues facing the nation.

EU-Digest

G7-Trump creates Chaos at G7 - as he calls for total barrier-free trade within the G7 and a return of Russia to the group

G7 Chaos: Merkel and Trump staring each other down

Despite imposing tariffs on major US allies, the anti-globalist president has called for free trade within the G7. He also insisted US allies would be forced to concede to US trade terms because the US "can't lose."

Trump, who railed against globalization in his election campaign, said he wanted all G7 nations to remove any tariffs, subsidies and other trade barriers.\

"You go tariff-free, you go barrier-free, you go subsidy-free," Trump opined, calling it "the ultimate thing." He said other world leaders reacted positively to the idea.

His economic adviser Larry Kudlow backed up the call, saying, "We’re going to clean up the international trade system."

But Trump's claims that he is in favor of global free trade would appear contradictory to his recent imposition of tariffs on US allies, much to their collective discontent.

Trump insisted US allies would yield to his demands of a trade rebalance, warning that the US would crush any opposition in a potential trade war.

"If they retaliate they're making a mistake …We win that war 1,000 times out of 1,000."

"They do so much more business with us than we do with them that we can't lose … When you’re down $375 billion you can't lose," he said, likely referring to the trade imbalance with China.

He said he could tell from the smiles of European leaders at the G7 that they knew that "the gig is up" and that they would negotiate terms with Washington.

Trump repeated his call for Russia to be allowed back into the alliance of world powers. It was kicked out of the G8 in 2014 for annexing Crimea from Ukraine.

"We're looking for peace in the world. We're not looking to play games."

"I think it would be good for Russia, I think it would be good for the US, I think it would be good for all of the countries of the current G7."

But when asked about returning to the G7 Russian Foreign Minister Sergei Lavrov said on Saturday that Moscow "never asked anyone to return" to the G7 and that Russia was happy working with the G20.
 
EU-Digest

US tariffs: the trade war has begun: US versus China, EU, Mexico and Canada

US on brink of trade war with EU, Canada and Mexico as tit-for-tat tariffs begin https://www.theguardian.com/business/2018/may/31/us-fires-opening-salvo-in-trade-war-with-eu-canada-and-mexico?CMP=Share_AndroidApp_Blogger

USA: Trump Tariffs: Trump’s China Trade War Has Deeper Agenda - by F. William Engdahl

Washington’s recent trade actions are aimed foursquare at China, not at the EU or other trade partners. However, the aim is not to reduce China exports to the US. The aim is a fundamental opening up of the Chinese economy to the Washington free market liberal reforms that China has steadfastly resisted. In a sense, it is a new version of the Anglo-American Opium Wars of the 1840s using other means to open China. China’s vision of its economic sovereignty is at direct odds with that of Washington. Because of this Xi Jinping is not about to cave in and Trump’s latest threats of escalation risk a major destabilization of the precarious global financial system.

There exist basically two contradictory visions of the Chinese future economy and this is what the Washington attacks are about. One is to force China to open its economy on terms dictated by the West, especially by US multinationals. The second vision is one put in place during the first term of Xi Jinping aiming to transform China’s huge economy into the world’s leading technology nation over the coming seven years, a tall order but one Beijing takes deadly serious. It is also integral to the vision behind Xi Jinping’s Belt Road Initiative.

Washington is determined to push China to adhere to a document it produced in 2013 together with the World Bank during the time Robert Zoellick headed it. The document, China 2030, calls for China to complete radical market reforms. It states,

“It is imperative that China … develop a market-based system with sound foundations…while a vigorous private sector plays the more important role of driving growth.”

The report, cosigned then by the Chinese Finance Ministry and State Council, further declared that

“China’s strategy toward the world will need to be governed by a few key principles: open markets, fairness and equity, mutually beneficial cooperation, global inclusiveness and sustainable development.”

Referring to the current Washington strategy of imposing import tariffs on billions worth of Chinese products, Michael Pillsbury, a neo-conservative former Trump Transition adviser and China expert told the South China Morning Post,

“The endgame is that China complete its deep reforms of its economy as laid out in the joint report,” referring to the World Bank Zoellick China 2030 report.

 Read more: Trump’s China Trade War Has Deeper Agenda | Global Research - Centre for Research on Globalization

China -US Relations: Trade war escalates as China says it will impose tariffs on 128 U.S. exports, including pork and fruit - by Damian Paletta

The Chinese government plans to immediately impose tariffs on 128 U.S. products, including pork and certain fruits, a direct response to President Trump’s recent moves to pursue numerous trade restrictions against Beijing.

If U.S. goods become more expensive in China, Chinese buyers could opt to purchase products from Europe, South America or elsewhere, though White House officials have routinely discounted the likelihood of this.

Beijing’s move could force Trump to decide whether to follow through on expansive trade restrictions he had hoped would crack down on China even if Beijing is now threatening to harm U.S. companies that rely on Asian markets for buyers.

A Twitter post from the “People’s Daily,” an English-language news organization controlled by the Chinese government, said Sunday that “China imposes tariffs on 128 items of imports from the U.S. including pork and fruit products starting Monday as a countermeasure in response to a previous U.S. move to slap tariffs on steel and aluminum imports: Ministry of Finance.”

Read More: Trade war escalates as China says it will impose tariffs on 128 U.S. exports, including pork and fruit

EU Reaction to US Trump Administration Tariffs: Counter-Tariffs Proposal Is Raising Prospects Of Trade War - by Zoltan Ban

In response to America's steel & aluminum tariff plan, the European Commission has drawn up a list of American products to impose tariffs on, ranging from orange juice to motorcycles.

The proposal needs the approval of EU member states, but if it does go ahead, it will likely lead to US retaliatory measures, which would then spark a trade war.

The onset of a major trade war can result in significant negative side effects, ranging from inflation & higher interest rates, to multinationals taking losses on capital investments abroad.

*It did not take long after President Trump proposed tariffs on imports of steel & aluminum of 25% & 10% respectively, for one of America's main trade partners to announce counter-measures meant to hurt American products in kind. As is the case with many things in the EU it now has to seek the approval of each individual country, which means that it is by no means a done deal. 

*If it does get approval from all EU states however, it will mean that a number of US products, ranging from metals & other industrial goods, to orange juice may be affected. 

*At this point, based on an article I read on a Romanian news site, the total value of American goods affected with a proposed 25% counter-tariff is estimated at $3.5 billion. 

*This by itself is by no means a huge hit to American economic interests, but the inevitable question arises whether this might be only the beginning of a trend which will lead to more and more trade barriers between the world's two largest economies, and perhaps throughout the world.

Read more: EU Counter-Tariffs Proposal Is Raising Prospects Of Trade War | Seeking Alpha

EU-US Relations: Trade war with Europe would damage the US economy, policy analysts say

The contentious comments arose after Trump declared intentions to limit steel imports to protect domestic steel companies.

EU Commission President Jean-Claude Juncker responded by saying, "Our mood is increasingly combative" and says the EU will react with countermeasures by imposing limits on bourbon, a major export from Senate Majority Leader Mitch McConnell's state of Kentucky.

Although sanctions have yet to be officially implemented, analysts say a potential trade war with Europe would be detrimental to the economy.

"It's been a while since we've had a good multilateral trade agreement or even a major regional trade agreement," Carla Hills, a former trade representative under President George H.W. Bush, told CNBC's "Closing Bell" on Friday.

 "We have indicated that we're not interested in them, and that really hurts our nation's economy."

Hills specifically referenced the free-trade deal between Japan and Europe, which would hurt American industries.

Read more: Trade war with Europe would damage the US economy, policy analysts say