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Trade

This tag is associated with 92 posts

Cadence Column: Asia, December 31, 2018


China and the US—more specifically Xi and Trump—are talking more and more about talking more and more about trade. China has drafted legislation to propose making China a fair country to outsiders. What a great proposed Christmas gift, just before the New Year. In light of everything, China seems to be making other concessions to … Continue reading

Cadence Column: Asia, December 10, 2018


The “Huawei arrest” sends yet another a irritatingly mixed message to China. China believes that a “strong response” concerning Taiwan will convince the US to back away from support for Taiwan. Conveniently for China, the recent provincial elections in Taiwan seem encouraging and Beijing has reached out to Taiwanese cities that just elected pro-Beijing party … Continue reading

The Soybean Trade Triangle: Argentina, China and U.S.


Do not get dizzy with this triangular trading game. Bloomberg reported on Nov 27 that “Argentina replaces China as (the) biggest US soybean buyer”, compared with “none in the same year-ago period, USDA data show …” On the other hand, “Argentina’s soybean exports will grow 15.4 million tonnes in the 2018-9 harvest season … That … Continue reading

Clause 32 of the USMCA is another big victory over China for Trump


The ‘Clause 32’ in the latest USMCA (US-Mexico-Canada Agreement) masterminded by President Trump, according to Neil MacDonald (a Canadian analyst), specifies that “… if Canada wants a trade deal with China, it has to notify the Americans about any negotiations, and tell them the substance of those negotiations, and submit the text of any deal, … Continue reading

Cadence Column: Asia, October 8, 2018


China’s political, socioeconomic worldview is that of a zero-sum game. It has played its socioeconomic game that way for decades. Now, it must empty its reserve coffers to keep its zero-sum game strategy from sinking too fast. This means that it can’t use those coffers if a military conflict arose. The United States knows this. … Continue reading

Cadence Column: Asia, October 1, 2018


When China cancelled a meeting in Washington, the Chinese thought they were sending a message; Washington thought they wouldn’t be sending any more messages at all. The Chinese government wants mutual respect, trade that results in equal numbers, and that countries not be bullied into taking sides in a China-US disagreement. Though China lobbed this … Continue reading

Cadence Column: Asia, September 17, 2018


The US is not sending a contingency of Marines to Taiwan to protect it’s envoy. This announcement came after reports that the US had such plans. After discussing the non-existence of the plans for deployment, the State Department also discussed that it does not discuss plans for security or other strategies. Perhaps the real strategy … Continue reading

Cadence of Conflict: Asia, September 10, 2018


Right or wrong, the US-China tariff war was always coming. Stupid American companies flew into the campfire of Chinese manufacturing like moths into a flame. China was smart inasmuch as they did not become dependent on the outsourced labor, which was always going to ever-only be temporary. China has wasted no time, building infrastructure, such … Continue reading

Cadence Column: Asia, July 30, 2018


The “China miracle” was nothing more than smoke and mirrors as big companies of the West took advantage of Chinese people seeking a living and Western consumers seeking lower prices. Everyone lost. There was no “miracle”. The fad for cutting costs and quick investment returns nickeled and dimed away quality, eventually pushing bean counters to … Continue reading

Cadence Column: Asia, July 23, 2018


Central planning has only so much room for slight of hand tricks to keep up its sleeve. When the going gets tough, everyone goes home. For China, that means devaluing its currency, a complaint Trump has long lobbed against the trade giant. Maintaining good relations with Apple and almost achieving the manufacturing capability long held … Continue reading

Cadence Column: Asia, July 16, 2018


Global trade has become too congested and inbred. Enemies make vital weapons parts for each other—well, enemies of the US make vital weapons parts for the US, but don’t return the favor. Western companies outsourced to developing markets, then were surprised at workplace hazards, loss in consumer trust, and didn’t seem to anticipate that by … Continue reading

Cadence Column: Asia, July 9, 2018


China is reaching out to the world. It doesn’t want tariffs imposed by the US. President Xi Jinping likely feels betrayed by the man who was so kind to him previously, President of the United States Donald Trump. The Western press will of course paint China and Trump as the villains—each in their different sectors—while … Continue reading

Cadence Column: Asia, June 18, 2018


Trump has stopped military exercises near North Korea, but he has not initiated any plans to withdraw troops. His reason for stopping the exercises is that they are provocative and expensive. He has a point: If the heads of state are talking then we are less in need of fighting practice in a scenario where … Continue reading

Cadence of Conflict: Asia, June 4, 2018


North Korea inches further and further toward talks with the US. China fears this. If Kim Jong-Un get in the same room as the man who wrote The Art of the Deal, North Korea could become a stronger ally to the US than even South Korea overnight. That would likely lead to a quick reunification … Continue reading

Cadence Column: Asia, May 21, 2018


Talk only went so far this week. I looks as if North Korea might not be dismantling its nukes, but hiding them, then threatening to close talks when exposed for this, then threatening to cancel the summit for some other list of excuses. The big question on Kim Jong-Un backing out on the talks relates … Continue reading

‘China Threat’ helps make Trump a great president


Further to the Pew Research’s 2014 finding that “…The ‘China threat’ in particular looms large in many American minds”, a new study finds that “trade and China”, alongside “immigration”, carried heavy weight in having Donald Trump elected as the President in 2016. The research paper approved on March 26, 2018 by the Proceedings of the … Continue reading

Cadence Column: Asia, May 7, 2018


This was week of talk. A delegation from Washington went to talk with China. Trump talked about talking nice while talking. Economic talking heads are talking about the talks and everybody’s talking about it. Once the delegation that went to Beijing to talk gets back, they will talk with Trump. Warren Buffet even had some … Continue reading

Cadence of Conflict: Asia, April 9, 2018


China has been a source of great change. Taiwan has received a license from the United States to build its own submarines. Wang, a legislature who sits on the Foreign Affairs and National Defense Committee said that friendliness from the US is the highest it has ever been. Japan just commissioned its first marine force … Continue reading

China to build Kra Canal across Thailand to bypass Malacca Strait


According to The Diplomat’s article “Thailand’s Kra Canal: China’s Way Around the Malacca Strait” on April 6, the 200-year-old dream about the canal might finally become a reality under China’s Belt and Road. The article says, “Most recently, the Thai-Chinese Cultural and Economic Association and the European Association for Business and Commerce participated in a … Continue reading

Cadence Column: Asia, April 2, 2018


China and the US have fixed their rudders on a ramming course. The only remaining question will be over whose hull is stronger. The “yuge” US trade deficit with China is purported to be $375B USD. Bloomberg was sure to point out that the figure is inflated, some way or another. Xinhua news reports that … Continue reading

Trump will win the US-China trade war easily


Beijing will accept a new US-China trade deal which is dictated by Trump. The American oilseeds for producing cooking oil, navigational instruments for building cargo vessels (dry bulk or container ships), intermediate producer goods for manufacturing … (see the picture shown above) are at this moment irreplaceable items that China needs to import from the … Continue reading

Cadence Column: Asia, March 12, 2018


As talks between Kim and Trump march forward, China is resigned to the new situation at its eastern border and is focusing on other areas, specifically trade. In truth, China’s main trade opponent is not the US, but Vietnam. Vietnam’s main edge in trade will be that it is less expensive. Vietnam is, in many … Continue reading

Cadence Column: Asia, September 25, 2017


China is taking a turn for the better over North Korea’s “Rocket Man”. Stronger sanctions, limits on trade, cutting off oil, halting banking—it was all a wise move on China’s part. At the United Nations, North Korea made no new friends. They made no indications of any change of heart. North Korea shares the same … Continue reading

Cadence Column: Asia, September 4, 2017


Korea’s situation is amplifying. We know this. North Korea is making more threats than ever with it’s “boy king” on the iron clad throne. We know that military options are 1. relevant and 2. undesirable. The Pentagon consistently barks about “military options”, while “economic options” stay on the table—don’t overlook how talk of military bolsters … Continue reading

Cadence Column: Asia, February 27, 2017


Americans love flags. The over-sized flag, the “Star Spangled Banner”, was a strategic tool of Fort McHenry at the Battle of Baltimore and the US national anthem itself is named after the flag. If the United States ever truly intended to communicate that it believes Beijing seats the rightful government over the island of Taiwan, … Continue reading

Cadence of Conflict: Asia, November 21, 2016


With TPP’s immanent floundering in the Pacific, China attempts to step into America’s shoes. But, those are big shoes to fill. As big of a deal as Asia thinks itself to be, any trade deal needs to include the Americas or it really isn’t worth writing headlines about—or even the agreement papers. China’s current proposal … Continue reading

China must get better on human rights before Canada will sign a trade deal


Canadian Prime Minister Justin Trudeau wants to establish closer relations with China but, citing human rights and governance concerns, won’t rush into a free trade agreement with the superpower. Trudeau, in an exclusive interview in Vancouver, struck a cautious tone when asked how he will proceed with one of his most delicate foreign policy challenges. … Continue reading

China pledges $60 billion in funding support to Africa


Chinese President Xi Jinping announced Friday that the country will pledge a new round of funding support to Africa‘s development, worth $60 billion. Analysts had wondered if the pace of Chinese investment in Africa would slow, particularly in infrastructure projects, because of the slowing growth of the Chinese economy. The announcement, however, seems to indicate … Continue reading

Can China’s consumers save the world economy?


Long the place that makes stuff and doesn’t consume much, China is set to redress the balance. And thus, some say, rescue the troubled global economy. But it’s a stretch to think that Beijing’s plan — shifting the export-driven country from emphasizing manufacturing and infrastructure to relying on public consumption – will spread sweet prosperity … Continue reading

China keen to promote its idea for Asia-Pacific trade pact at Apec in Manila


Beijing will report back on a study for Free Trade Area of the Asia-Pacific just days after the release of details of a US-led agreement China will seek to push its own vision of an Asia-Pacific trade pact at a regional summit next week, senior officials said yesterday, just weeks after the release of a … Continue reading

China says it should join TPP, even though it wasn’t invited


China should join at an appropriate time the U.S.-backed regional trade accord the Trans-Pacific Partnership (TPP) as its broad aims are in line with China’s own economic reform agenda, an influential Communist Party newspaper said on Sunday. China is not among the 12 Pacific Rim countries who earlier this month agreed the trade pact, the … Continue reading

China warns Britain not to bring up human rights during Xi Jinping’s visit because he would be offended


China provided instructions to the British government ahead of President Xi Jinping‘s state visit to London Oct. 20-23, advising leaders to refrain from raising the issue of human rights. China’s ambassador to Britain, Liu Xiaoming, pointed out that good relations hang in the balance, and that Xi’s visit is expected to “herald a golden era … Continue reading

China’s ‘Silk Road’ initiative is at risk of failure


The Silk Road Initiative is the major project for Chinese President Xi Jinping. On every state visit and within every diplomatic forum, he has promoted his idea of “One Belt, One Road” (OBOR). Beijing wants to create China-centred infrastructure networks in order to expand its own economic and political influence in Eurasia. But the time … Continue reading

As old China slows, new China remains closed to foreign firms: ‘The worst time for multinationals’


As China’s old economy slumps, service industries from banking to telecommunications are poised to take up the slack. The catch for American and other foreign firms: They’re locked out of these new growth drivers. Overseas banks and life insurers have both seen their markets shares slip over the past decade, to 1.7 per cent and … Continue reading

For Hollywood, the road to China is littered with broken deals – the perils of doing business with China


Hollywood talent agent Jeff Berg flew to Shanghai last summer to celebrate one of his biggest deals — a partnership with Chinese investors in Resolution, his new agency in Century City. Two hundred business executives, government officials, actors and journalists gathered at the swank Hotel Shangri-La to mark the occasion. Celebrities posed for photographs. Guests … Continue reading

China concerned that India shows no clear interest in the New Silk Road initiative


The following is based on a translation of a report on a Chinese news site: A report on news.sohu.com expresses China‘s concern that India, the largest country in South Asia, still fails to show any clear interest in China’s Silk Road economic Belt and 21st century maritime Silk Road, despite China’s repeated invitations. The projects, … Continue reading

China not fit for global leadership


Australia’s top public servant has dismissed any prospect of China leading the world, saying the economic giant is neither willing nor able to solve global problems. Michael Thawley, secretary of the Department of Prime Minister and Cabinet, said China had shown itself to be more interested in challenging the existing order than building a better one. … Continue reading

Western companies are being forced to figure China out all over again as sales plummet


Foreign companies have long known that China’s economic slowdown—now upon us—could hit their earnings hard. They just didn’t expect they’d be hit by changing consumer buying habits and a rise in Chinese competitors at the same time. Suddenly, foreign brands are finding it a lot harder to convince consumers in the world’s most populous country … Continue reading

3 helpful tips for dealing with vexing Chinese negotiating tactics


As a film producer and consultant who works extensively in China, I am often confronted with the vexing challenge of making deals with savvy Chinese negotiators. I have found the advice offered by Steven Dickinson, an attorney with the Seattle-based law firm Harris Moure, to be extremely helpful in confronting the business negotiating tactics that … Continue reading

China’s new silk road could change global economics forever


Beginning with the marvellous tales of Marco Polo’s travels across Eurasia to China, the Silk Road has never ceased to entrance the world. Now, the ancient cities of Samarkand, Baku, Tashkent, and Bukhara are once again firing the world’s imagination. China is building the world’s greatest economic development and construction project ever undertaken: The New … Continue reading

Why western companies fail in China


Many western companies try to expand their business to China’s nearly 700 million internet users. Some companies succeed and get tremendously rewarded, but many more fail. I previously wrote an article about what, as I see it, Chinese startups should change to perform better in Western markets. In this article, I will show the other … Continue reading

India and China- A hope for the future


The India–China relationship has always been troubled, but the visuals of Prime Minister Modi’s visit to China were certainly heartwarming. President Xi returned Mr Modi’s gesture of breaking the protocol to receive him. That aside, 24 deals were signed between the sides. The visit did turn out to be ‘successful’ considering the fact that deals … Continue reading

China announces strategically important Kra Isthmus Canal in Thailand


The following is based on a translation from Chinese media: A memorandum of cooperation among various enterprises on the construction of Kra Canal in Thailand has been signed in Guangzhou China. The canal, located at Kra Isthmus, will enable ships to bypass the Malacca Strait so as to shorten their voyage by 1,200 km. It … Continue reading

Pakistan commits 10,000 military to protect Chinese workers, as China seeks to build direct path to Indian Ocean


The following is based on a translation of a report in Chinese media: Pakistan is regarded as a violent, lawless and run-down place with great risk of infiltration by Islamic extremists. It is in economic difficulties as few are willing to take a risk by investing in it. However, according to quanzhan.com’s report on April … Continue reading

EU cannot maintain protection against Chinese imports, as rules change in China’s favour


European fears of being forced to lower tariff defences against cheap Chinese imports have grown following a confidential warning from the EU’s own lawyers, who say the bloc should not ignore changes to global trade rules set to favour Beijing. In a draft letter seen by Reuters, the head of the European Commission’s Legal Service, … Continue reading

China and Africa forge new trade alliances on ancient routes


Africa Brings New Trade and Challenges to World Economies. China and India’s new-found interest in trade and investment with Africa—home to 300 million of the globe’s poorest people and the world’s most formidable development challenge—presents a significant opportunity for growth and integration of the Sub-Saharan continent into the global economy. These two emerging economic “giants” … Continue reading

China’s real GDP growth rate plummets to 1.7 percent, not the 7.4 percent reported by the government


Diana Choyleva of Lombard Street Research, who produces an “unmassaged” calculation of China’s true economic growth, just reported that China’s fourth quarter GDP growth plummeted to 1.7 percent, versus the official 7.4 percent rate. According Choyleva, “Dire data out of China are competing head-on with the Greek political drama as the most destabilising factor for … Continue reading

Britain, Germany, France, Italy and others considering joining China-led investment bank, against US advice


The United States urged countries on Tuesday to think twice about signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join. The concerted move by U.S. allies to participate in Beijing’s flagship economic outreach … Continue reading

China likely to end up as former would-be superpower


Forecasts for China to surpass the US as the world’s main economic power are misplaced. So says an observer who foresaw Japan’s eventual demise a year before its land-price bubble began to burst. “The vulnerabilities in China today are very similar to the vulnerabilities in Japan,” said Roy Smith, 76, who was a Goldman Sachs … Continue reading

As China slows down, Philippines stands to win foreign investment


The Philippines, a nation long in need of industrialisation, is taking steps this year to pull investment away from Asia’s manufacturing centre: China. And some multinationals are already giving the Southeastern Asian archipelago a chance. Manila‘s ambition to divert foreign investment intended for China has lured electronic hardware manufacturers such as Seiko Epson (SEKEY) and Lexmark International … Continue reading

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