Chinese Economics Thread

[Jura The idiot]

interestingly,
China decides to exempt US pork, soybeans from additional tariffs
Source:Global Times Published: 2019/9/13 20:45:07

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China on Friday announced it would exempt US soybeans and pork from additional punitive tariffs, a move expected to ease the trade conflict between the two economic powers, and create good conditions for the upcoming trade talks.

Experts said that the move, ahead of the next round of high-level trade consultations scheduled in early October, is a reciprocal goodwill gesture or olive branch to Washington in response to Trump administration’s decision to delay imposing higher tariffs on $250 billion of Chinese goods from October 1 to October 15.
"Exempting the additional tariffs on US pork, soybeans and other agricultural products will ease pressure on China’s stretched domestic supplies, while making the US side get to know China’s sincerity in the coming trade talks,” said Song Guoyou, director of Fudan University's Center for Economic Diplomacy.

The recent “outburst of sincerity from both Washington and Beijing” is certainly good precursor for the coming round of trade consultations, and “the goodwill gestures are expected to continue”, as the reciprocal moves are encouraging for both, Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, told the Global Times on Friday.

China supports enterprises purchasing a certain amount of soybeans, pork and other agricultural products from the US and will exempt these products from the tariff list, Xinhua News Agency reported on Friday, citing information from China's

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and the

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.

China has a huge market, which brings in broad prospects for high-quality agricultural products from the US, and hopes that the US will fulfill its commitments so as to create favorable conditions for cooperation in agricultural sectors, according to Xinhua.

Chinese private firms bought over 10 boatloads of US soybeans on Thursday, which were the most significant purchases since at least June, CNBC reported, citing anonymous traders.

Also, 10,878 tons of US pork was sold to China in the week ended September 5, the most in a single week since May, according to the report, citing data from the US Department of Agriculture.

China imported 95.53 million tons of soybeans in 2017, of which 34 percent is from the US. The total amount of US soybeans shipped to China dropped to 16.64 million tons in 2018, declining 49 percent year-on-year, thanks to the trade war.

 

[Jura The idiot]

The operator of Hong Kong stock exchange has proposed to buy the London Stock Exchange.

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now
London Stock Exchange strongly rejects Hong Kong’s US$36.6 billion surprise takeover bid, says Shanghai is ‘preferred’ partner

• LSE cites Hong Kong’s current political crisis, and questions its future role as a gateway to China in strongly worded letter rejecting the offer
• The UK-based bourse said it remained committed to its proposed purchase of Refinitiv

follow the link

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if interested

 

[Jura The idiot]

Trump's tweet inside

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China to exempt US pork and soybeans from additional trade war duties, in response to Trump’s tariff delay

• Xinhua News Agency reported exemption is in response to the US’ decision to postpone planned tariff increase from October 1 to October 15
• It comes after US President Donald Trump spoke on Thursday of the possibility of an ‘interim trade deal’ over the coming weeks

 

[manqiangrexue]

now
London Stock Exchange strongly rejects Hong Kong’s US$36.6 billion surprise takeover bid, says Shanghai is ‘preferred’ partner

• LSE cites Hong Kong’s current political crisis, and questions its future role as a gateway to China in strongly worded letter rejecting the offer
• The UK-based bourse said it remained committed to its proposed purchase of Refinitiv

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if interested

They must feel so betrayed by their former colonial masters...

 

[Anlsvrthng]

Ever heard of currency SWAP agreements?

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That is Quid pro quo, how that create the abandoned supply of yuans in other hands ?

That needs trade surplus, not currency swap agreements.

 

[vincent]

That is Quid pro quo, how that create the abandoned supply of yuans in other hands ?
That needs trade surplus, not currency swap agreements.

Huh? currency swap gives the other side plenty of RMB to play with

 

[Dolcevita]

now
London Stock Exchange strongly rejects Hong Kong’s US$36.6 billion surprise takeover bid, says Shanghai is ‘preferred’ partner

• LSE cites Hong Kong’s current political crisis, and questions its future role as a gateway to China in strongly worded letter rejecting the offer
• The UK-based bourse said it remained committed to its proposed purchase of Refinitiv

follow the link

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if interested

Same here, my employer is downsizing (lay-off) our HK business as of last week and at the same time aggressively setting up new corporate entities in China.

 

[Anlsvrthng]

Huh? currency swap gives the other side plenty of RMB to play with

Credit swap doesn't gives net assets, its only transfer the exchange rate risk from the market participants to the central bank.

For low risk contractual /transaction currency you need abundant net supply of Yuan / dollars/ pounds at the hand of a wide spread of market participants.


The swap has cost, end date with fixed exchange rate, so if the market change fast then the central bank will hold the bag.

 

[vincent]

Credit swap doesn't gives net assets, its only transfer the exchange rate risk from the market participants to the central bank.

For low risk contractual /transaction currency you need abundant net supply of Yuan / dollars/ pounds at the hand of a wide spread of market participants.


The swap has cost, end date with fixed exchange rate, so if the market change fast then the central bank will hold the bag.

Changing the goal posts, aren’t you? We were talking about the supply of RMB and i just prove to you trade deficit is not a prerequisite. The central bank will always be the one holding the bag. Look how much US treasury Chinese central bank has

 

[Jura The idiot]

Yesterday at 8:51 PM

interestingly,
China decides to exempt US pork, soybeans from additional tariffs
Source:Global Times Published: 2019/9/13 20:45:07

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now this
Commentary: Constructive interactions pave way for China-U.S. trade talks
Xinhua| 2019-09-14 18:49:46

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A series of recent constructive interactions between China and the United States have improved the prospects for progress at the next round of high-level trade talks.

On Friday, the Mid-Autumn Festival, China said it will exclude some agricultural products such as soybeans and pork from the additional tariffs on U.S. goods, and will support domestic companies in purchasing a certain amount of U.S. farm produce in line with the rules of the market and the World Trade Organization.

The move came after the United States decided to make adjustments to the additional tariffs to be imposed on Chinese goods on Oct. 1 and added to a timeline of encouraging events since the beginning of September.

On Wednesday, China unveiled the first set of lists of U.S. goods to be excluded from the first round of additional tariffs on U.S. products. And on Sept. 5, Chinese and U.S. chief trade negotiators agreed via phone call to hold the 13th round of the China-U.S. high-level economic and trade consultations in Washington in early October and maintain close communication leading up to the talks.

The working groups of the two sides will meet next week to conduct consultations on issues of mutual concern including trade balance, market access and protection of investors.

Both sides are easing tensions and taking concrete actions to create favorable conditions for the upcoming talks, demonstrating the willingness to implement the consensus reached by the two countries' heads of state and break the stalemate.

The timing of the interactions is worth noting. On Sept. 24, 2018, which was the Mid-Autumn Festival, China was forced to roll out countermeasures against additional U.S. tariffs of 10 percent on Chinese products worth about 200 billion U.S. dollars.

On-and-off talks between the two countries over the past year have cast a shadow on the global economy, and voices urging both sides to come back to the negotiating table have grown stronger day by day.

China and the United States need to find the right path to resolving their differences and enhance mutual trust by increasing constructive interactions, as bilateral ties are not a zero-sum game and allow for win-win outcomes.

Their trade and economic cooperation over the past 40 years has shown that both countries have much to gain by joining hands. The cooperation on farm produce such as soybeans and pork is one good example.

The recent constructive interactions raised hopes that both sides could show more sincerity and take solid actions in meeting each other halfway. As China-U.S. relations stand at a critical juncture, let there be enough wisdom and courage to advance the October talks toward producing substantial progress.