Homepage / Currency / China considers its response to Donald Trump’s proposed tariffs
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 Arconic shares jump 11% on report of private equity firm's buyout interest How the Russians broke into the Democrats' email, and how it could have been avoided AMD shares rise after Stifel predicts higher profitability for chipmaker CEO of the world's largest asset manager is worried that tech shares are the only stocks doing well Despite high projections, some analysts are cautious about Netflix ahead of earnings There are 'tremendous storm clouds on the horizon' for markets: Guggenheim's executive chairman How to stick to your shopping budget on Amazon Prime Day Amazon's Prime Day is likely to drive company’s sales and share price higher Microsoft gets a boost from its biggest sales reorganization ever ZTE stock surges as USsupplier ban lifted though outlook remains uncertain Oil falls 2% below $70 as Treasury says importers may get leeway to buy Iranian crude UBS downgrades FedEx on trade war risks, upgrades UPS on domestic performance Bitcoin jumps after report suggests BlackRock is getting serious about the cryptocurrency market One of the biggest — and often costliest — retirement mistakes investors are making today The US dollar is surging, and that could spell trouble for markets Buy Cisco on the dip because the Amazon threat worries are ‘overdone’: Bank of America Strong retail sales report suggests robust economic growth in the second quarter Tech consumers should not be forced to sacrifice privacy for security Why your Amazon Prime membership may not be worth the price Netflix draws its second 'sell' rating on Wall Street as Buckingham downgrades before earnings With bank earnings underway, market watcher bets on big rally for financials Stocks making the biggest moves premarket: BLK, BAC, UPS, FDX, JBHT & more Thai rescue mission diver mulls legal action after Elon Musk calls him 'pedo guy' Trump claims US-Russia relations have ‘never been worse’ shortly before Putin meeting China will be watching and learning as Trump meets Putin Amazon Prime Day threatened by strikes at European warehouses over working conditions While Trump meets Putin, China is reaching out to Europe Trump-Putin summit could provide a ‘significant breakthrough’ on Syria, strategist says How cryptocurrency start-ups have raised over $12 billion this year via a much-hyped funding route For Asia's soccer teams to succeed, work starts off the field European markets seen higher ahead of earnings; Trump-Putin meeting in focus How start-ups are positioning healthy food to make 'a lot of business sense' 'Never underestimate human stupidity,' says historian whose fans include Bill Gates and Barack Obama China says its second-quarter GDP growth was 6.7%, meeting expectations Asian stocks poised for slightly softer open as markets await China data Elon Musk courts new controversy after tweeting, then deleting, an attack on a British cave explorer How a former eBay employee is inspiring kids to become tomorrow's problem solvers Here's what the DOJ needs to happen to win its appeal against AT&T The 2018 Hyundai Tucson is a good bargain crossover but skip the high-end model Trump suggests US and UK could strike a 'tremendous' trade deal after Brexit PlayVS wants to bring electronic sports gaming into high schools The unintentional winners of Prime Day: Amazon’s competitors Elon Musk insists he's neither Democrat nor Republican, as political contributions come under fire Amazon could make a big impact in health by helping people eat better


China considers its response to Donald Trump’s proposed tariffs

FOR now, at least, when speaking of the trade dispute with America, China’s government is taking a more-in-sorrow-than-in-anger tone. That helps explain the Chinese public’s surprisingly measured views of Donald Trump, and gives the Chinese government some breathing room to consider its options.

The state media have so far taken the high ground. True, the Global Times, a chest-thumping tabloid, accused the American president of “gambling” that China will be cowed by his “capricious and obstinate attitude”. No country can isolate itself from globalisation, said the Xinhua news agency: “The wise man builds bridges, the fool builds walls.” A new Xinhua web page popped up on June 20th, tracking multilateral deals that Mr Trump has quit, including on trade, climate change and Iranian nuclear arms.

  • What does it mean to be Métis?

  • Retail sales, producer prices, wages and exchange rates

  • Foreign reserves

  • Why tipping in America is up for debate

  • America’s trade spats are rattling markets

  • Donald Trump signs an executive order to stop family separations

But China has yet to debate, publicly, how to handle an American president who is an avowed populist and won office by playing on the fears and grievances of workers in such places as the midwestern rustbelt, handing him an America First mandate to reshape global trade. China is uncomfortable with discussions of democratic mandates, voter grievances or elections that overthrow establishments.

The results can be heard in a straw poll of factory workers in the eastern city of Yantai, who will be among the first to suffer from the American tariffs planned for July 6th. Yantai is home to a car factory owned by SAIC-General Motors, a joint venture that makes the only Chinese-built car to be sold in America in significant numbers. The Dong Yue car plant produces the Buick Envision, a faintly dowdy four-wheel drive exported to America since 2016, and which will cost about $8,000 more once tariffs bite. American drivers bought 41,000 Envisions last year.

On a muggy morning this week, the news had reached workers wheeling mopeds and electric bicycles through a side gate as they headed home. Kong Xiangbao, a machinery repairman, fretted that his salary could suffer if fewer cars are made for export. Li Tongxiao admitted to rather liking Mr Trump, citing his “charisma”, wealth and success before entering politics. Mr Li takes comfort in the domestic success of Buick in China, where drivers looking for a practical, upper-middle-range car last year snapped up more than 200,000  Envisions. GM sells more cars in China than in America, and this—along with years of watching news broadcasts that present world affairs as formulaic meetings between powerful men—has engendered fatalism. “The American market, though it isn’t small, isn’t big either. Besides, this is an issue between two countries. Even if I were worried, there is nothing I can do about it,” Mr Li shrugged.

Qu Yang, a salesman at a Buick showroom in Yantai, is puzzled by the very idea that an unusual, outsider president might be the cause of tensions. “The American president and the American government, for Chinese people it’s one and the same,” he says. Sales of Japanese cars suffered in previous spats. He hopes a trade dispute with America will have less impact than the “historical feud” with Japan.   

In 2012 jingoistic reports and online debates about islands claimed by both Japan and China prompted nationalists to attack Japanese noodle shops, rip flags and damage Japanese cars before authorities clamped down. More recently, a South Korean supermarket chain was, in effect, kicked out by official harassment and a consumer boycott, because of a row over American anti-missile defences in South Korea. But so far state media and official spokesmen have avoided the slogans that often prefigure outbreaks of public rage—the charge, say, that a foreign power has hurt the feelings of the Chinese people.

One reason is the need to preserve the prestige of Communist leaders. State media presents President Xi Jinping as a confident and hospitable patriarch, more than capable of handling men like Mr Trump. And, notes William Zarit, the chairman of the American Chamber of Commerce (AmCham) in Beijing, signs of softening in the Chinese economy mean “this is not a good time for a trade war.” He sympathises with American officials’ loss of patience with Chinese moves to skew markets in their favour, notably through unfair enforcement of regulations. The most recent AmCham survey of business sentiment found most of its members reporting rising revenues and healthy profits, but 75% also saying that foreign companies have become less welcome in China. Mr Zarit voices concerns that America “could paint China into a corner, and not adequately consider Chinese domestic politics”.

Western businesses and diplomats in China long to see the country reach a new grand bargain between its model of assertive state capitalism and the more market-driven Western model. Team Trump’s attacks on forced technology transfers and state subsidies are broadly welcomed. But businesses and allied governments want Mr Trump to pick the right fights. It is one thing to ask China to behave differently. It is another to ask it to stop climbing up the industrial value chain, with such policies as the “Made in China 2025” plan.

That would smack of containment, which does stir Chinese public opinion, even at the gates of a plant making American cars on the shores of the Yellow Sea, 6,700 miles from Detroit. Americans are “fearful of China’s development”, says Mr Kong, the machinery repairman. “They worry it will affect America’s dominant status.” Plenty of Trump voters would agree. Therein lies trouble.

Source: economist
China considers its response to Donald Trump’s proposed tariffs

Comments are closed.