Homepage / Asia / Trump is signaling he's about to lash out at China — here's what Beijing is thinking
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Asia

Trump is signaling he's about to lash out at China — here's what Beijing is thinking

China is bracing for a clash with the U.S. when President Donald Trump announces potentially aggressive trade measures against Beijing. White House officials told CNBC the president will make deliver a speech on Friday targeting Chinese intellectual property and trade practices. Here is how people in China are reacting.

The official Chinese response has largely been critical but subdued. On Thursday in Beijing, the Chinese Commerce Ministry played up the U.S.-China trade benefits, but dismissed the notion that China has not done enough to protect intellectual property.

“I would like to emphasize that the Chinese government has always put strong emphasis on the protection of intellectual property rights,” ministry spokesman Gao Feng told reporters at a regular press briefing. “The results are obvious to all.”

When asked about the speculation that U.S. Trade Representative Robert Lighthizer could initiate an investigation into Chinese trade practices using section 301 of the Trade Act of 1974, which allows the president to unilaterally impose restrictions to protect American industries, Gao reiterated China’s position that disputes should be taken to the World Trade Organization.

“Any trade measures taken by WTO members should abide by the rules of the WTO,” Gao said.

Lighthizer and other Trump administration officials have been critical of how the WTO manages international disputes.

Government officials, who spoke on the condition of anonymity, told CNBC that China is in wait-and-see mode with the White House.

They want to see if Trump will actually take action and what the details of any measures might be, they said.

So far, despite Trump’s tough talk, Beijing has seen no 45 percent tariff on Chinese goods, no border tax, and no quotas on steel.

That said, China has seen action on the Trump administration’s crackdown on certain Chinese entities with business dealings in North Korea. And for their part, officials and government researchers say they are miffed that the U.S. is linking the North Korea nuclear issue with U.S.-China trade.

This week, the country’s vice commerce minister said that the two are “completely different domains.”

One officer told CNBC that, from the Chinese perspective, connecting the two issues makes little sense: Just because China and the U.S. don’t see eye-to-eye on one issue doesn’t mean the two can’t do business, he explained.

The Chinese state media tends to be more openly critical, and, on Thursday, the government-backed China Daily attacked Trump’s expected announcement.

In an editorial, the newspaper described the possible restrictions as “worrying” with the potential to “spark a trade war.” The paper argued that, depending on the action, “China will have no choice but to take retaliatory measures.”

It’s important to note that the state media is not the official government reaction, but articles and editorials are vetted by authorities, so the media response helps gauge Beijing’s outlook on various topics.

U.S. companies in China are in a tough spot.

On the one hand, many business executives have told CNBC they want the Trump administration to focus more on intellectual property theft as well as market access instead of manufacturing and the trade deficit.

Scott Palmer, an intellectual property expert with law firm Sheppard, Mullin, Richter, and Hampton, said the U.S. needs to press for greater trade secret protection, easier trademark filings, and cooperation to fight counterfeits sold online.

However, several American businesses are also feeling vulnerable to retribution in one of their key markets. And since Trump’s election, Chinese officials and the state press have already said that, if need be, China would prepare for tit-for-tat retaliation.

What is also worrying executives in China is the possibility that retaliation could affect entirely different industries. For example, back in 2009, the Obama administration slapped a hefty tariff on Chinese tires. Soon after, Beijing imposed penalties on U.S. chicken parts — costing American poultry producers.

The two issues weren’t explicitly linked, but the timing raised eyebrows.

Executives are also concerned that the business climate could get even tougher for U.S. companies more generally. Top corporate complaints these days include tighter controls on the internet and crackdown on virtual private networks, requirements for data storage on local servers, as well as uncertainty about getting money out of the country.

American companies want the U.S. government to help, but they are nervous about the real impact on their operations.

Source: cnbc china
Trump is signaling he's about to lash out at China — here's what Beijing is thinking

Comments are closed.