News Story: U.S. unilateral measures to shaken multilateral trade framework - UN official

GENEVA, Aug. 15 (Xinhua) -- The U.S. unilateral punishing trade measures, based on outdated national laws, against its trade partners are not in line with the international laws and could shaken the foundation of an established multilateral trade framework, a UN trade official warned on Tuesday.

U.S. President Donald Trump on Monday directed the U.S. trade representative (USTR) Robert Lighthizer to examine China's intellectual property practices, despite worries about potential harms to China-U.S. trade ties.

The USTR will determine "whether to investigate any of China's laws, policies, practices, or actions" that "may be harming American intellectual property rights, innovation or technology development" under Section 301 of the Trade Act of 1974, according to a memorandum released by the White House.

Section 301, once heavily used in the 1980s and the early 1990s, allows the U.S. president to unilaterally impose tariffs or other trade restrictions against foreign countries, but the U.S. has rarely used the trade tool since the WTO came into being in 1995.

Liang Guoyong, Economic Affairs Officer at the Investment and Enterprise Division of the UN Conference on Trade and Development (UNCTAD), said such an examination under Section 301 could serve as a tool for the U.S. to strike a bargain with China, and any tariffs or restricting trade measures thereof imposed unilaterally by the U.S. could shaken the foundation of a multilateral trade framework.

The repercussions would be a high risk of a trade war which will benefit neither of the two countries, he added.

Read the full story at Xinhua

Related Story: China expresses "grave concerns" about new U.S. memorandum

News Report: Trump Weighs Sanctions on Mainland China, Trade War Likely

In response to North Korea’s sanction-evasion schemes and mainland China’s support of Pyongyang, the Trump administration could start a trade war with China as soon as Monday, sending economic shockwaves across the globe.

Kristian Rouz – As the international crisis over North Korea’s nuclear ambition unravels, part of the Trump administration is targeting Pyongyang’s largest trade partner, mainland China. The standoff between North Korea and the US’ allies in the region, South Korea and Japan, renders the US more likely to use economic instruments to reign in the regime in Pyongyang, however, sanctions against North Korea alone are inefficient due to the lack of proper market economy mechanisms in North Korea.

Now, the White House is launching a probe into mainland China’s trade practices. Part of the reason is, as President Trump himself has been stating since his election campaign last year, that China has been taking advantage of the US and other major economies economically though the abuse of currency FX rate manipulations and its dirt-cheap workforce. The North Korean crisis, and Beijing’s support for Kim Jong-Un, render the US more decisive to change their approach to trade with China.

On Monday, President Trump is planning to order the US Trade Representative Robert Lighthizer to investigate the possible Chinese violations in trade with the US, which could result in US economic sanctions against Beijing. This would also serve the political purpose of containing the North Korean regime, as China will have fewer resources to give away to Pyongyang.

News Report: South Korea Rejects Trump’s $1 Billion THAAD Demand

THAAD Interceptor missile test launch

Brian Padden

SEOUL, SOUTH KOREA — The South Korean government has quickly refuted U.S. President Donald Trump’s call for Seoul to pay $1 billion for the THAAD missile defense system.

The Defense Ministry put out a statement Friday saying, “There is no change in South Korea and the United States’ position that our government provides the land and supporting facilities and the U.S. bears the cost of THAAD system’s deployment, operation and maintenance.”

The deployment of the U.S. Terminal High Altitude Area Defense (THAAD) anti-missile battery was agreed to last year by the administrations of then U.S. President Barack Obama and then South Korean President Park Geun-hye. Park was able to evade demands that she seek National Assembly approval for the deal by claiming no additional funding would be required for the THAAD deployment.

But during an interview Thursday with Reuters in Washington, President Trump said he wants South Korea to pay for the system.

A former U.S. State Department official estimated the cost of the system at $1.2 billion, but said the United States would not want to sell THAAD to Seoul.

Trump also said in the Oval Office interview he wants to resolve the crisis peacefully, possibly through the use of new economic sanctions, but added, “There is a chance that we could end up having a major, major conflict with North Korea.”

China has told Washington it has warned Pyongyang of new Chinese sanctions if it conducts another nuclear test, U.S. Secretary of State Rex Tillerson said in a Fox News interview Thursday . That would be a departure for Beijing, which has until now been unwilling to impose sanctions beyond those ordered by the United Nations.

A Chinese foreign ministry spokesman declined to confirm or deny Tillerson's statement Friday, dismissing the question at a briefing as "hypothetical," the Associated Press reported.

News Report: Trump, Unorthodox as Ever, Offers Grand Bargain to Beijing

Peter Heinlein

WHITE HOUSE — President Donald Trump appears to be offering a grand bargain to Chinese President Xi Jinping in which each would get something he dearly wants -- an assurance of economic stability ahead of a critical Communist Party Congress in exchange for Chinese help in halting North Korea's nuclear programs.

The offer has come in a burst of television interviews and social media posts. In a pair of Twitter posts this week, Trump suggested he would agree not to launch a threatened trade war with China, helping to ensure a strong domestic economy as China's ruling party reviews Xi’s achievements and determines whether he should stay in power. All Xi has to do, Trump says, is to ‘solve the Korean problem.’

News Report: Why US Will Not Receive Regional Support in S China Sea Dispute With China

An article by US Congressman Ted Yoho published by the National Interest website analyzes possible options that the US could undertake in response to the development of Chinese military infrastructure in the South China Sea.

Yoho carefully analyzes the current situation and existing US arsenal and tries to suggest various options for action in response to the Chinese advance in the region.

In an interview with Sputnik China, Russian military expert Vasily Kashin said that the article by Yoho shows just how limited, in essence, the available US options are to respond to the strengthening of China.

In his article Yoho makes an important recognition that the actions taken by the US to contain and punish China can only be one-sided. Organizing collective action is quite impossible because of the success of the Chinese policy in ASEAN.

“The US will not succeed in receiving support from the regional powers. This reduces the reserve of actions available to the US to quite a limit. The remaining proposals made by Yoho shouldn’t be even brought to light as they are so meaningless,” Kashin said.

News Report: South Korean Businesses Hit by Chinese Backlash Over Missile Defense

Shares of South Korean companies tumbled on Friday after what are perceived to be retaliatory acts by China against the deployment of a US-built missile system outside of Seoul.

South Korea's culture ministry told reporters on Friday that Chinese government officials ordered tour operators in Beijing and beyond to stop selling and advertising trips to the country, just days after Seoul secured land for the Terminal High Altitude Area Defense (THAAD) system from the Lotte Group.

Lotte, South Korea's fifth-largest conglomerate, experienced disruptions in its Chinese and international websites starting Tuesday night, right after it agreed to provide land to the government to host the US-built missile-defence system. The company believes the disruptions are the result of a cyberattack by Chinese hackers.

While South Korea claims the missile system is meant to protect the close US ally from North Korean nuclear and missile threats, Beijing objects to the deployment, fearing that the technology could be used against China.

News Story: China to respond if U.S. introduces border tax - minister

BEIJING, Feb. 21 (Xinhua) -- China will make careful evaluations and respond accordingly if the United States unveils a detailed plan on the proposed border-adjustment tax, Commerce Minister Gao Hucheng said Tuesday.

China is aware of a recent proposal within the U.S. administration concerning a border tax on imports, said Gao at a press conference when answering a question on U.S. President Donald Trump's posts on Twitter.

All countries should abide by international trade rules when formulating trade policies, the minister said.

Read the full story at Xinhua

News Report: Seoul Braces for China's Economic Response to US Missile System in S Korea

Seoul is seriously concerned that China may react negatively to the upcoming deployment of elements of the US Terminal High Altitude Area Defense (THAAD) system in South Korea, according to Sputnik Korea.

Commenting on the forthcoming deployment of elements of the US Terminal High Altitude Area Defense (THAAD) system in South Korea, experts told Sputnik Korea that Seoul is already alarmed about China's retaliation against the move.

In this context, Lee Wanghwi from Ajou University mentioned China's so-called Red Supply Chain, a new economic policy which he said poses a serious threat to South Korea, which currently delivers many components, semi-finished and intermediate products to China.

"As soon as the question of Seoul's possible trade war with Beijing after the THAAD deployment arises, suggestions emerge to reduce the share of China, which now amounts to 25% of South Korea's foreign trade."

"Quickly reducing the share of trade with China is very difficult, given that many companies are involved in the [mutual] supply chain," Wanghwi said.

News Story: Border tax will create self-defeating dilemma for Washington

by Luo Jun

BEIJING, Feb. 14 (Xinhua) -- The recent proposal of a controversial border tax on imports by U.S. House Republicans will not only set back global trade rules and hurt the interests of Washington's trading partners, but also cost U.S. consumers and its global influence dearly.

Though there are some good intentions behind the bill, including raising the competitiveness of American products and fostering favorable conditions for the domestic manufacturing industry, it could never meet the goal without paying a much higher price.

The proposed border tax plan immediately shocked the European Union (EU) and other U.S. allies, and may prompt the biggest dispute in the World Trade Organization, as it goes against basic economic principles and established world trade rules.

A radical increase on import tax would put a heavy burden on domestic consumers, retailers and other businesses, as well as overseas trade partners of the United States.

The unilateral disruption of a trade balance could very likely trigger counter measures from other countries, even a chain reaction across the global trade landscape, with the worst case scenario being a trade war that causes losses on all sides.

Read the full story at Xinhua

News Report: What's Behind Trump’s Recent Message to His Chinese Counterpart Xi Jinping

US President Donald Trump sent a message to Chinese President Xi Jinping, announcing his intention to build a constructive relationship with China. Just a day earlier, Chinese Foreign Minister Wang Yi suggested that the US should “brush up” on its memory of World War II.

Professor at the Institute of International Relations of the People's University of China, Wang Yiwei spoke to Sputnik China in an interview saying that Trump has talked a lot about China, but still has not spoken with Xi Jinping over the phone.

Perhaps the reason behind that is because Trump hasn’t yet decided what exactly he will say to the Chinese president.

“Possibly Trump has not yet decided what exactly to say to the Chinese President over the phone because previously he had already said so much. For example, he already managed to express his opinion about the ‘One China’ policy, the south china sea issue, trade war and other topics. He decided to take on more ‘light’ topics, leaving ‘difficult’ ones for later,” Wang said.

According to the expert, the recent message of Trump to his Chinese counterpart may have come as compensation for not wishing the Chinese president with the New Year. However, Trump is the only one so far who congratulated Xi Jinping with the Chinese lantern festival.

News Story: Australia could be caught in U.S. trade war with China - expert

SYDNEY, Feb. 8 (Xinhua) -- The looming prospect of a trade war between the United States and China, has a leading Australian expert concerned about the impact on Australia, especially as both nations are the country's most major trading partners.

James Laurenceson, deputy director of the Australia-China Relations Institute (ACRI), told Xinhua on Wednesday, Trump's behavior towards China is increasingly volatile and erratic, and could lead to a trade war between the two nations.

"The difference between Trump's pre-election rhetoric and the policy decisions since taking office have narrowed, not widened," Laurenceson said.

"Most notably, the people he has surrounded himself with are extreme China hawks, particularly on the trade side."

The primary concern with the Trump administration has always been whether his subordinates were acting on his behalf to further his real policy motives, or whether their actions are being guided as a means of negotiating a stronger position from which to negotiate with China on trade.

Laurenceson was adamant that Trump's comments about Taiwan and currency valuations, prove he is trying to use any means necessary to bargain, but there needs to be real concern that he may attempt to follow through with his controversial words.

Read the full story at Xinhua

News Report: Chinese Army Commander - War With US Increasing Reality

Amid heightening tensions surrounding US President Donald Trump’s protectionist stance, the possibility of a trade war and even physical combat between the world’s two largest economies has become a full-fledged "reality."

On the day that Donald Trump was sworn-in as the 45th President of the United States, Liu Guoshon, a Chinese Central Military Commission official, authored an op-ed pointing out that violence between China and America might not be so far into the future. "A war within the president’s term," and "war breaking out tonight," are not merely slogans, "but the reality," Liu said.

Ian Bremmer, a Stanford-trained political scientist and inventor of the global political risk index, commented that, "Chinese officials are preparing for the worst, and they expect to retaliate decisively in response to any US policies they perceive as against their interests." Bremmer added that Beijing's moves to increase DF-21 missile tests and initiate casual aircraft carrier missions near Taiwan is asserting itself as a warning to Trump, rather than as a show of force.

News Report: Experts - US-China Relationship Pivotal in 2017

WASHINGTON — Whether as a candidate or as president, Donald Trump’s remarks and actions, including some of his personnel appointments, make many China observers believe that Sino-U.S. relations will deteriorate sharply, and that the two countries may even head toward a collision.

From harsh criticism on China’s trade practices to breaking longstanding diplomatic protocol to take a phone call from Taiwanese President Tsai Ing-wen, from questioning the very foundation of U.S.-China relations - the One China policy - to appointing well-known China hawks for important trade positions, President Trump seems to be signaling that he intends to shake up the relationship considered to be the world’s most important and most consequential, especially on the trade front.

Some trade experts believe a trade war between the world’s two biggest economies is inevitable.

Alan Tonelson is the founder of the RealityChek blog, and who served as a research fellow at the U.S. Business and Industry Council.

“If the Chinese leaders want to suffer major losses that will affect their lives, then go right ahead to have a major trade war with the U.S. because that’s exactly what’s going to happen,” Tonelson told VOA in a telephone interview.

News Story: New Pentagon chief to visit Japan, South Korea next month

US SecDef James Mattis

US Defense Secretary James Mattis plans to travel to Japan and South Korea next month on his first trip as the Pentagon's new chief, a spokesman said Wednesday.

He is set to depart on February 1 for South Korea before traveling to Tokyo on February 3.

"The trip will underscore the commitment of the United States to our enduring alliances to Japan and the Republic of Korea, and further strengthen US/Japan/Republic of Korea security cooperation," Pentagon spokesman Jeff Davis said.

The trip comes amid worries among the two long-standing American allies about the direction of US policy in their region under President Donald Trump.

During his campaign, Trump threatened to withdraw US forces from the two countries if they do not step up their financial support.

Mattis will be the Trump administration's first senior official to shed light on specifics of Washington's intentions in the region.

He will meet with his counterparts and other senior officials, Davis said.

Read the full story at SpaceDaily

News Story: Official reaffirms Chinese stance on South China Sea

Click Image to Enlarge

BEIJING, Jan. 25 (Xinhua) -- The South China Sea issue is the business of China and other directly concerned countries, which have agreed to focus on joint development and regional peace and stability, said a Chinese Foreign Ministry spokesman on Tuesday in response to the new U.S. administration's intended interference.

Lu Kang clarified China's stance in an interview in Beijing with NBC News. The interview came after Whited House press secretary Sean Spicer said the United States would stand up to China on the South China Sea issue, vowing "that we defend international territories from being taken over by one country."

"That's not international territories, that's Chinese territories," Lu told NBC News.

While reiterating China's sovereignty and admitting its awareness of controversies concerning some islands that only began in the mid-1970s, Lu said countries in the region have reached agreements on how to handle disputes in a way to "serve the common interests, of both China and all the other countries in this region."

"Countries have already come back to the original agreement that maybe for the time being we could set aside those sovereign disputes, and focus on some joint developments, and working together to maintain the peace and stability in this region," he said.

While stressing that any dispute is between China and those directly concerned countries, Lu also expressed China's hope for the United States or any other country from outside to respect the common wish and the common interests in this region.

Read the full story at Xinhua

News Story: Trump trade moves chilling, could hurt US business - trade experts

By Heather SCOTT

President Donald Trump's first moves on trade have cast a pall over US trade relations and could hurt US businesses, trade experts say.

Trump has begun his term by pulling out of one major agreement, vowing to renegotiate or exit another, and threatening to impose border taxes on imports -- a clear shift away from decades of policy putting the United States at the forefront of the global push for free trade.

A strident critic of existing US free trade agreements throughout his campaign, Trump's first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership.

The move was the fulfillment of a campaign promise -- one that was easy to do because the 2015 agreement had never been implemented, but which nonetheless sent a clear signal the United States is backing away from hard-fought trade pacts.

"It's a sign of a brake on global integration," said International Monetary Fund official Alejandro Werner, who heads the Western Hemisphere Department.

Jake Colvin, vice president of the National Foreign Trade Council, a pro-trade business group, said US leadership on trade issues remains key.

"It is critical that the United States not cede leadership on the global economy to countries like China," he told AFP.

"It's important to have a muscular trade policy, but we need to make sure we're playing offense as well as defense and continue to open up foreign markets for American business and workers."

He said the NFTC will engage with the new administration to point out the good things the TPP would have accomplished.

Read the full story at TerraDaily

News Report: Chinese Editorial Speculates About 'Real War' With US After Trump Inauguration

A Chinese editorial the day after US President Donald Trump's inauguration took talks of a trade war even further, speculating on the possibility of "real war" between the two.

Ed Zhang, editor at large of the China Daily, asked "Will there be a trade war between the two largest trading powers?" and noted that many are saying "a showdown with China is unavoidable and imminent."

Trump showed no inclination to back down in his inauguration speech January 20, Zhang said, noting the new president's promise that every decision on trade, taxes, immigration and foreign policy will be made to benefit American workers and American families.

Zhang speculated on what that might mean for Chinese businesses. "If there is a hike in tariffs across the board, then Chinese companies will lose a lot of orders for the same goods they have been shipping to the US market for the last decade," he said. But they might gain an opportunity to offload products that aren't profitable or that are made with environmentally costly materials.

News Story: Australian experts, politicians closely watching "Trump effect"

by Will Koulouris

SYDNEY, Jan. 22 (Xinhua) -- Donald Trump was inaugurated as the 45th president of the United States on Friday, raising questions about what impact his presidency will have around the globe, including here in Australia.

The rise of Trump has led to uncertainty, with his rhetoric suggesting the possibility of a trade war and other protectionist measures.

Tom Switzer, senior fellow of the United States Study Center in Sydney, told Xinhua that Australia should and will continue following the United States on policy, but should ensure the relationship does not affect Australian interests.

Not all view the Australia-U.S. relationship in the same way, however, with James Laurenceson, deputy director of the Australia-China Relations Institute, told Xinhua he does not follow the view that Australia always follows the United States.

"Look at the Asian Infrastructure Investment Bank. We were under pressure from the United States not to join that, we joined it. When it comes to trade deals, we are heavily in favor of RCEP (Regional Comprehensive Economic Partnership) and a free trade area championed by China. We want that too," Laurencenson said.

"The truth is that we follow our own national interests. So in each case we are going to weigh up those interests."

Read the full story at Xinhua

News Story: U.S. President-elect Trump "going to fail" - Soros

U.S. President Donald Trump

DAVOS, Switzerland, Jan. 20 (Xinhua) -- On the eve of Donald Trump's inauguration, Billionaire investor George Soros said Thursday the U.S. President-elect is "going to fail".

During a speech in Davos, the venue for the World Economic Forum, Soros called Trump a "would-be-dictator", saying he was "gearing up for a trade war".

A trade war would have "a very far reaching effect in Europe and other parts of the world," warned Soros, a supporter of Democratic candidate Hillary Clinton during the 2016 presidential campaign.

The "would-be-dictator ... didn't expect to win," said Soros.

According to Bloomberg Television reports, Soros said "I personally am convinced that (Trump) is going to fail."

Read the full story at Xinhua

News Story: China warns US of revenge if Trump will impose trade war

The China’s Communist Party Global Times newspaper wrote last Thursday that U.S. President-elect will be met with “big sticks” in the “gate of China’s Ministry of Commerce” if he tries to ignite a trade war or further strain ties.

“There are flowers around the gate of China’s Ministry of Commerce, but there are also big sticks hidden inside the door — they both await Americans,” it wrote in an editorial column.

The newspaper’s article was in response to Mr. Donald J. Trump picking Robert Lighthizer, a former trade official in the Ronald Reagan administration who has criticized Beijing’s trade practices, as U.S. trade representative.

Read the full story at Tankler