Trade War with China

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SilentObserver

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That is one of the problem the Anglo Saxon countries of US, Canada, England, Australia does not want to invest in training people in the name of effciency. They think as unnecessary expenses . Unlike Germany and Japan where they consider people as asset and not variable cost

They also does not want to invest in R&D that much thinking that doing the same thing over and over shoudl do the job . It might be so 20 or 30 years ago.But now the competition get stiff unless you can provide cutting edge technology no body want to pay you premium price

Their solution is instead of investing in R& D they just go outsourcing the manufacturing to China or any other cheaper manufaturing But by doing that they create their own competitor!
See the chart in the article above! How the R&D has been declining for decades
The Anglo world is essentially milking the human investment and talent from non-Anglo Europe including former soviet nations and parts of Asia where they invest heavily in education and training. This doesn't take away from the fact that Anglo sphere has a strong foundation.

Just look at the top companies and research institutions in the US, a large part of their personnel comes from other nations. They were usually educated and raised in another nation, and some go to the US to complete their higher education. The cost of cultivating talent is externalised on other nations and the talent comes into the Anglo sphere talent pool as a finished product or near finished product. This in the long run is a massive wealth transfer. Of course there are long term downsides to this strategy but in the short run it is a very efficient system financially speaking.
 

taxiya

Brigadier
Registered Member
can somebody educate me .. why Qualcomm would need Chinese approval for the merger?
So it can sell in China. The merge can go ahead without China's approval in theory. But that would mean being expelled from Chinese market which if I remember right accounts for close to half of its sales. The defense of domestic industry and anti-trust are two things offered by WTO rules for such act. In theory the deal need approval from all WTO members, but in practice a country without relevant industry or market size is ignorable have no say in play. Similar to FAA certification.

This is why it is important to take Qualcomm as hostage for ZTE. If Trump kills ZTE, China should kill Qualcomm.

The others necessary approvals are from Japan, SK, EU, and have all been granted. You can see there is not need for approval from other big countries because they are irrelevant to the matter.
 
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The Anglo world is essentially milking the human investment and talent from non-Anglo Europe including former soviet nations and parts of Asia where they invest heavily in education and training. This doesn't take away from the fact that Anglo sphere has a strong foundation.

Just look at the top companies and research institutions in the US, a large part of their personnel comes from other nations. They were usually educated and raised in another nation, and some go to the US to complete their higher education. The cost of cultivating talent is externalised on other nations and the talent comes into the Anglo sphere talent pool as a finished product or near finished product. This in the long run is a massive wealth transfer. Of course there are long term downsides to this strategy but in the short run it is a very efficient system financially speaking.

This "brain draining" strategy relies on wide actual or perceived personal inequality and opportunity gaps between the source and destination countries which has a lot to do with historical development, systemic biases, and competition among a lot of active application of national hard and soft power.
 

Hendrik_2000

Lieutenant General
So it can sell in China. The merge can go ahead without China's approval in theory. But that would mean being expelled from Chinese market which if I remember right accounts for close to half of its sales. The defense of domestic industry and anti-trust are two things offered by WTO rules for such act. In theory the deal need approval from all WTO members, but in practice a country without relevant industry or market size is ignorable have no say in play. Similar to FAA certification.

This is why it is important to take Qualcomm as hostage for ZTE. If Trump kills ZTE, China should kill Qualcomm.

The others necessary approvals are from Japan, SK, EU, and have all been granted. You can see there is not need for approval from other big countries because they are irrelevant to the matter.

Depending on foreigner was never a good policy what they give they can take it back. It is probably true in 80's and 90's When large masses of Chinese student think that all the road in New York or Silicon valley is paved with the gold

That is not true any more now more and more Chinese student are returning home because of the lure of entrepreneurship and all the subsidy they can get. Plus H1 visa is getting harder and harder to get as the present administration is cracking down on foreign student with proposal to limit residency training for only 1 year non renewable

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China is the world's largest source of students pursuing education overseas, but the number of Chinese students who opt to return to the homeland to launch their career and contribute to the development of the country has been steadily increasing in recent years.

According to
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from the Ministry of Human Resources and Social Security of China, 2016 saw a record high of 432,500 ‘returnees’. The outbound-to-return ratio has increased by about 10 percent in the past four years: from 72.38 percent in 2012 to 82.23 percent in 2016.

The soaring trend becomes even more striking when put in a more extended timeframe: in 2006, only about a third of all Chinese students
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after finishing their education abroad.

Here is the latest statistic as of may this year roughly 80% are returning

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20180519_SRC360.png
 
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weig2000

Captain
In theory the deal need approval from all WTO members, but in practice a country without relevant industry or market size is ignorable have no say in play. Similar to FAA certification.

It's not feasible or necessary to get approval from every WTO member. Only members within which substantial amount of revenue are generated (say, 10%) and/or if the deal will result in market share exceeding certain %.
 

solarz

Brigadier
Depending on foreigner was never a good policy what they give they can take it back. It is probably true in 80's and 90's When large masses of Chinese student think that all the road in New York or Silicon valley is paved with the gold

That is not true any more now more and more Chinese student are returning home because of the lure of entrepreneurship and all the subsidy they can get. Plus H1 visa is getting harder and harder to get as the present administration is cracking down on foreign student with proposal to limit residency training for only 1 year non renewable

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China is the world's largest source of students pursuing education overseas, but the number of Chinese students who opt to return to the homeland to launch their career and contribute to the development of the country has been steadily increasing in recent years.

According to
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from the Ministry of Human Resources and Social Security of China, 2016 saw a record high of 432,500 ‘returnees’. The outbound-to-return ratio has increased by about 10 percent in the past four years: from 72.38 percent in 2012 to 82.23 percent in 2016.

The soaring trend becomes even more striking when put in a more extended timeframe: in 2006, only about a third of all Chinese students
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after finishing their education abroad.

Here is the latest statistic as of may this year roughly 80% are returning

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20180519_SRC360.png


First, that graphic is highly misleading. There are more students returning to China because there are more Chinese students studying abroad in the first place.

Second, the nature of overseas Chinese students has changed as well. There are far more Chinese students pursuing management degrees abroad, and those students intended to return from day one.
 

Hendrik_2000

Lieutenant General
Promising energy export to China become the victim of Trump tariff. Instead Russia and Iran will become the top exporter of oil to China
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China surprises with threat on U.S. energy exports

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(Reuters) - Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of the list of importers of oil from the United States.

FILE PHOTO: A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. REUTERS/Stringer/Files
China responded to $50 billion in tariffs imposed by U.S. President Donald Trump with a similar amount of levies on a variety of U.S. goods. But China also said it would impose tariffs on U.S. energy products, which analysts considered a surprise as previous tariff threats had centered on agricultural goods and automobiles.

“This is a big deal. China is essentially the largest customer for U.S. crude now, and so for crude it’s an issue, let alone when you involve (refined) products, too. This is obviously a big development,” said Matt Smith, director of commodity research at ClipperData.

China currently imports about 363,000 barrels of U.S. crude daily, on par with Canada as the biggest U.S. crude importer, according to U.S. Energy Department figures. It also takes in an additional 200,000 barrels a day (bpd) of other products like propane.

The U.S. energy industry has been buoyed by production from the nation’s shale fields, boosting overall daily oil production to a record 10.9 million bpd. Of that, the United States is now exporting about 2 million bpd, and Trump has touted dominance in energy production and export as key to American global influence.

The United States has also been urging other nations, including China, to buy more U.S. energy and limit purchases of Iranian crude after Trump pulled out of a 2015 nuclear arms agreement with Tehran. China is the largest buyer of Iranian oil, purchasing 650,000 bpd in the first quarter of 2018, and it is unclear if it plans to reduce those purchases.

A tariff would discourage Chinese refiners from buying U.S. crude imports.


The threatened tariff by China comes just as major producers including Saudi Arabia and Russia look set to increase production at next week’s meeting of the Organization of Petroleum Exporting Countries, along with other non-member states.

China is also a major importer of other products such as propane, and tariffs would boost prices for that and several other petroleum products, said Bernadette Johnson, vice president at Drillinginfo in Denver. She also said sellers of liquefied natural gas (LNG), also emerging as a U.S. export to China, have been worried about tariffs.

“The constant back-and-forth about the tariffs creates a lot of market uncertainty that makes it harder to sell cargoes or sign long-term (trade) deals,” she said.

Reporting by Ayenat Mersie, David Gaffen and Jessica Resnick Ault in New York; Editing by Will Dunham
 
Yesterday at 8:12 PM
might look as if I had been waiting for
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BREAKING: China will impose tariffs on some US products worth about $50 billion starting July 6, says China's State Council. More details to come.
and now I read
China decides to impose additional tariffs on 50 bln USD of U.S. imports
Xinhua| 2018-06-16 04:18:10
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China has unveiled a list of products from the United States that will be subject to additional tariffs in response to U.S. announcement to impose additional duties on Chinese imports.

Approved by the State Council, the Customs Tariff Commission of the State Council has decided to impose additional duties of 25 percent on 659 items of U.S. products worth about 50 billion U.S. dollars.

Additional tariffs for 545 items worth about 34 billion U.S. dollars, including agricultural products, vehicles and aquatic products, will be effective from July 6, 2018, according to a statement of the commission.

The implementation date for imposing additional tariffs on the remaining 114 items, covering chemical products, medical equipment and energy products, will be announced later.

The decision has been made in line with relevant stipulations of the Foreign Trade Law of China and the Regulations of the People's Republic of China on Import and Export Duties, as well as the fundamental principles of international laws, said the statement.

On Friday, the United States announced additional tariffs of 25 percent on Chinese imports worth approximately 50 billion U.S. dollars.

From July 6, additional tariffs will be levied on some 34 billion U.S. dollars worth of Chinese products. Meanwhile, the other 16 billion dollars worth of Chinese products will undergo further review in a public notice and comment process.

"The U.S. move violates the relevant rules of the World Trade Organization, goes against the consensus already reached in bilateral economic and trade consultations, seriously infringes upon the legitimate rights and interests of the Chinese side and undermines the interests of China and its people," said the statement. "The Chinese side firmly opposes that."

An official in charge of the Office of the Customs Tariff Commission said that the additional tariffs targeting Chinese goods, once imposed, would "substantially change" the trade conditions of these goods, and affect relevant producers and trade companies as well as the production and operation of the upstream and downstream industries.

The official said the Chinese action was taken in response to the emergent circumstances caused by the U.S. violations of international obligations.

China has noticed the U.S. statement that it will continue to impose additional tariffs if China takes retaliatory measures. China reserves its rights to take corresponding measures, according to the official.
plus
Dollar shaky as China trade worries weigh
2018-06-16 10:43 GMT+8
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The US dollar slipped against the Japanese yen on Friday, as China unveiled a list of products from the US that will be subject to additional 25-percent tariffs in response to the US announcement to impose additional duties on Chinese imports, raising tensions between the world’s two largest economies.

The dollar slipped by 0.07 percent to 110.54 yen, retreating from a three-week high of 110.9 yen. The yen, a perceived safe haven often sought in times of geopolitical tensions and market turmoil, had touched a more than three-week low against the greenback earlier in the session.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.04 percent at 94.732.

It’s not clear that the rising trade tension has a very clear impact on the dollar broadly, and hile it’s negative for the dollar against some currencies, it is also very positive, at least in the near term against other currencies, said Omer Esiner, chief market analyst, at Commonwealth Foreign Exchange in Washington.

Offshore Chinese yuan fell to a five-month low against the greenback.

The euro gained against the dollar, rebounding from a nearly two percent drop on Wednesday, its worst one-day drop since June 24, 2016, following Britain’s vote to withdraw from the European Union.

The euro’s slump on Friday came after the European Central Bank signaled it would keep interest rates at record lows into the summer of 2019.

On Friday, however, the outlook for the euro appeared brighter as banks adjusted their forecasts for interest rates to the ECB’s guidance, removing some uncertainty from the market.

Sterling steadied above its lowest level since November, after strong US retail sales and a more hawkish Federal Reserve earlier this week boosted the dollar and underlined policy divergence between the countries. Sterling was 0.09 percent higher at 1.3273 US dollars.

The Canadian dollar weakened to a fresh near one-year low against its US counterpart as trade tensions between US and China intensified and domestic data showed a surprise drop in manufacturing sales.

Wall Street builds immunity to trade friction rhetoric

Fears of tariffs and a rising trade tension have jostled US stocks over the past few months, but there is a sense among investors that the market is taking the drum beat of rhetoric and statements more in stride.

The equity market largely shrugged it off. The benchmark S&P 500 index ended down only 0.1 percent on Friday.

That paled compared to losses earlier in the year that were sparked by fears of a US-China trade dispute that would be detrimental to economic growth.

To be sure, certain areas of the market remain sensitive to rhetoric about trade.

The S&P 500 industrial sector, which includes multi-national companies such as plane maker Boeing and heavy machine manufacturer Caterpillar, has lagged the market since trade dispute flared in March. Industrials dropped 0.25 percent on Friday, worse than the broader index’s decline.
 

SteelBird

Colonel
Promising energy export to China become the victim of Trump tariff. Instead Russia and Iran will become the top exporter of oil to China
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China surprises with threat on U.S. energy exports

Trump warns that any retaliation from China will cause more tariff. If Trump impose more tariff, China will take more retaliation actions, then Trump will impose even more tariff, and China will take even more.... when will this end?
 
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