Published: Thu, May 16, 2019
Worldwide | By Isabel Fisher

US blacklists China`s Huawei as trade dispute clouds global outlook

US blacklists China`s Huawei as trade dispute clouds global outlook

They do impose large tariffs on our products, they force foreign companies to share their technology with them in return for access to the country's vast market and in many cases outright steal technology from our companies.

Authorities have for years been attempting to transition the world's number two economy from being reliant on state investment and exports to a more stable one driven by China's huge army of consumers, with the tariffs stand-off reinforcing the need for such a change. Analysts fear a confrontation which started when rising power China challenged the dominance of global economic leader United States of America has now developed into a battle of wills between two of the world's most powerful men. USA importers pay the tariffs, and they respond by reducing their profit margins, raising prices, or both.

According to Reuters, Beijing backtracked on commitments to change its laws on key structural issues including forced technology transfer, theft of us intellectual property, and currency manipulation.

Farmers were disappointed with Trump's dismantling of the North American Free Trade Agreement (NAFTA), and then pleased when he replaced it with the US Mexico Canada Agreement (USMCA). "It will always continue", said Mr Trump, who has announced plans to meet Chinese President Xi Jinping at a Group of 20 Summit in Japan late next month.

Estimating the impact of the tariffs is hard, as the costs will be borne by some com-bination of producers, importers and end consumers. I think our margins are going to shrink, that reduces our profitability.

Analysts at Citi said its China economists are "cautiously optimistic that a trade deal can eventually be signed". "No way!" Trump wrote. That positivity dissipated as it became evident that the two sides remained far from an agreement, and with no deal forthcoming the U.S. on May 10 hiked the tariff rate on $200 billion worth of Chinese imports to 25% from 10%.1 Unlike the tariffs imposed on the import of intermediate Chinese goods in July 2018, the items affected by the May hike are split evenly between intermediate goods and consumer goods, increasing the likelihood that United States consumers will bear some of the costs of the increase.

Trump could launch 25% tariffs on another $300 billion worth of Chinese goods when he meets Xi next month.

"I think this is as good of a time as any, if you can choose, to talk to China candidly about trade".

He did not provide details on the plan, which follows US$12 billion in similar farm aid past year.

"Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now". "This money will come from the massive tariffs being paid to the United States for allowing China, and others, to do business with us". He has not ruled out imposing punitive levies on all of China's imports to the United States.

"China will fight to the finish", said a foreign ministry spokesman, Geng Shuang.

The Trump administration had pledged up to $12 billion in aid to help offset losses resulting from Chinese tariffs. Remarkably, Trump has the backing of some powerful Democrat lawmakers (most prominently New York's Chuck Schumer) and influential liberal columnists (notably NYT's Tom Friedman) as he seeks to wrest the initiative from China, which in the Trump narrative, has stolen a march over U.S. by literally stealing its technology. Beijing has been waging economic warfare on the United States for years - stealing our intellectual property, forcing our companies to transfer technology as a price of doing business in China and subsidizing state-owned enterprises to prevent US businesses from competing in dozens of sectors of the Chinese economy.

"They [the Chinese regime] already steal intellectual property, block US companies from doing business in China & give massive government support to Chinese companies", he wrote.

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