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AP News: China economy czar heading for Washington tariff war talks
By JOE McDONALD
BEIJING (AP) — Efforts to end a U.S.-China trade war are in shambles after the United States accused China of reneging on its commitments and prepared to raise import taxes on $200 billion worth of Chinese goods.
A Chinese delegation is headed to Washington to salvage talks aimed at resolving a dispute over China’s aggressive push to challenge American technological dominance. Negotiations are set to resume Thursday.
The setback in negotiations caught financial markets by surprise, and the U.S. stocks fell Tuesday for the second straight day. For weeks, Trump administration officials had suggested that negotiators were making steady progress.
China confirmed Tuesday its economy czar, Vice Premier Liu He, will lead China’s delegation, ending speculation that he’d skip the talks or that the Chinese team would back out altogether.
The announcement suggests President Xi Jinping’s government is putting its desire to end a conflict that has battered Chinese exporters ahead of the political need to look tough in the face of U.S. pressure.
The decision to have Liu take part in talks might keep alive hopes the two biggest global economies could make peace as early as this week.
The Trump administration is pressing Beijing to roll back plans for government-led development of Chinese global competitors in robotics, electric cars and other technologies. Washington, Europe, Japan and other trading partners say those violate China’s market-opening commitments and are based in part on stolen technology.
Trump’s announcement Sunday that he would increase tariffs on $200 billion of Chinese imports to 25% from 10% on Friday caused global stock markets to plunge. Markets steadied after a Chinese spokesman said Monday that envoys still were preparing to go to the United States, though there was no word then whether Liu would take part.
On Tuesday, China’s main stock market index rose 0.7% and most other Asian markets also rebounded.
The American side is led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
A Commerce Ministry statement announcing Liu’s plans gave no indication whether other details, such as the size of his delegation, might change.
Washington and Beijing have raised tariffs on billions of dollars of each other’s exports, disrupting trade in goods from soybeans to medical equipment. Estimates of lost potential sales so far range as high as $25 billion.
Both governments have said negotiations were making progress, but Trump expressed frustration Sunday at the pace.
Mnuchin said Monday that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks.
In response, a Chinese foreign ministry spokesman, Geng Shuang, said Beijing “is sincere in continuing consultations.”
Asked whether China took Trump’s threat seriously, Geng said similar situations had happened “many times before.”
“We hope the United States can still work together with China,” Geng said at a news briefing. “On the basis of mutual respect and equality, we will resolve each other’s legitimate concerns and strive to reach an agreement of mutual benefit and win-win.”
The decision to send Liu to Washington as scheduled shows China “urgently hopes to reach an agreement,” said Ma Hong, a professor at Tsinghua University’s School of Economics and Management.
“They couldn’t abandon it just because of a Twitter comment,” said Ma.
The conflict is testing how far Beijing is willing to go in changing a state-led economic model it sees as the path to prosperity and global influence — and how much power Washington will have to enforce any agreement.
The United States accuses Beijing of pressing foreign companies to hand over technology in exchange for market access, improperly subsidizing Chinese firms and stealing American trade secrets.
No details of the talks have been released. But private sector analysts say Beijing is willing to change details of its plans so long as it preserves the ruling Communist Party’s dominant economic role.
The Trump administration has imposed 10% tariffs on $200 billion in Chinese imports and 25% tariffs on another $50 billion. The Chinese have retaliated by targeting $110 billion in U.S. imports.
Trump said Sunday he also planned to impose 25% tariffs on another $325 billion in Chinese products. That would extend penalties to everything China ships to the United States, its biggest foreign customer.
A stumbling block in the talks is U.S. insistence on an enforcement mechanism with penalties if Beijing fails to keep its promises. The Trump administration wants to keep tariffs on Chinese imports to maintain leverage over Beijing.
Chinese negotiators have balked at what economists say they might see as giving Washington too much control.
“It is not completely an economic issue,” said Ma. “After all, it concerns the rights of a sovereign country.”
https://apnews.com/b1364288d44341368a9c013f5491d6d2
CNBC: Oil dips as US-China trade war intensifies, but Gulf tensions mount
PUBLISHED TUE, MAY 7 2019 5:54 AM EDT
KEY POINTS
U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. The comments dragged on both Asian and U.S. stock markets.
Brent crude oil futures fell $1.10, or 1.5%, $70.14 per barrel around 12 p.m. ET (1600 GMT).
U.S. West Texas Intermediate crude futures were down 93 cents, or 1.5%, at $61.32 per barrel.
“An escalation in the U.S.-China trade war has brought oil prices under renewed pressure,” said Abhishek Kumar, head of Analytics at Interfax Energy in London.
“The spat has reinvigorated demand-side concerns, given that the conflict has been adversely impacting prospects for global economic growth.”
On the supply side, oil markets remain tense as the United States has tightened sanctions on Iranian oil exports and plans to bulk up its forces in the world’s top oil-exporting region.
U.S. officials announced on Sunday that the movement of the Abraham Lincoln carrier strike group and a bomber task force towards the Middle East was meant to counter “credible threats”, but Tehran dismissed the move as “psychological warfare”.
U.S. sanctions have already halved Iranian crude exports over the past year to below 1 million barrels per day, and shipments to customers are expected to drop to as low as 500,000 bpd in May as sanctions tighten.
Washington has also placed sanctions on oil exports from Venezuela, a founding member of OPEC.
Many analysts concurred that production curbs agreed by OPEC and other producers, such as Russia, will continue to boost prices.
“The recent Brent pullback has taken prices too low in the face of tight fundamentals and growing supply risks, just as refiners come back from extended spring turnarounds,” Goldman Sachs said.
The U.S. bank said “we therefore expect a near-term Brent rebound,” although it added that “beyond the next couple months ... all these supply and demand cross-currents will dissipate to bring a balanced global oil market, once new (U.S.)Permian transport capacity is online and core-OPEC ramps up.”
Commerzbank wrote that OPEC is currently producing significantly less oil than is needed.
“Production in Venezuela and Iran is likely to decrease further because of the U.S. sanctions,” it said.
https://www.cnbc.com/2019/05/07/oil-market-us-china-trade-war-sanctions-on-iran-venezuela-in-focus.html?
Source: Dinar Recaps
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
Harambe:
AP News: China economy czar heading for Washington tariff war talks
By JOE McDONALD
BEIJING (AP) — Efforts to end a U.S.-China trade war are in shambles after the United States accused China of reneging on its commitments and prepared to raise import taxes on $200 billion worth of Chinese goods.
A Chinese delegation is headed to Washington to salvage talks aimed at resolving a dispute over China’s aggressive push to challenge American technological dominance. Negotiations are set to resume Thursday.
The setback in negotiations caught financial markets by surprise, and the U.S. stocks fell Tuesday for the second straight day. For weeks, Trump administration officials had suggested that negotiators were making steady progress.
China confirmed Tuesday its economy czar, Vice Premier Liu He, will lead China’s delegation, ending speculation that he’d skip the talks or that the Chinese team would back out altogether.
The announcement suggests President Xi Jinping’s government is putting its desire to end a conflict that has battered Chinese exporters ahead of the political need to look tough in the face of U.S. pressure.
The decision to have Liu take part in talks might keep alive hopes the two biggest global economies could make peace as early as this week.
The Trump administration is pressing Beijing to roll back plans for government-led development of Chinese global competitors in robotics, electric cars and other technologies. Washington, Europe, Japan and other trading partners say those violate China’s market-opening commitments and are based in part on stolen technology.
Trump’s announcement Sunday that he would increase tariffs on $200 billion of Chinese imports to 25% from 10% on Friday caused global stock markets to plunge. Markets steadied after a Chinese spokesman said Monday that envoys still were preparing to go to the United States, though there was no word then whether Liu would take part.
On Tuesday, China’s main stock market index rose 0.7% and most other Asian markets also rebounded.
The American side is led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
A Commerce Ministry statement announcing Liu’s plans gave no indication whether other details, such as the size of his delegation, might change.
Washington and Beijing have raised tariffs on billions of dollars of each other’s exports, disrupting trade in goods from soybeans to medical equipment. Estimates of lost potential sales so far range as high as $25 billion.
Both governments have said negotiations were making progress, but Trump expressed frustration Sunday at the pace.
Mnuchin said Monday that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks.
In response, a Chinese foreign ministry spokesman, Geng Shuang, said Beijing “is sincere in continuing consultations.”
Asked whether China took Trump’s threat seriously, Geng said similar situations had happened “many times before.”
“We hope the United States can still work together with China,” Geng said at a news briefing. “On the basis of mutual respect and equality, we will resolve each other’s legitimate concerns and strive to reach an agreement of mutual benefit and win-win.”
The decision to send Liu to Washington as scheduled shows China “urgently hopes to reach an agreement,” said Ma Hong, a professor at Tsinghua University’s School of Economics and Management.
“They couldn’t abandon it just because of a Twitter comment,” said Ma.
The conflict is testing how far Beijing is willing to go in changing a state-led economic model it sees as the path to prosperity and global influence — and how much power Washington will have to enforce any agreement.
The United States accuses Beijing of pressing foreign companies to hand over technology in exchange for market access, improperly subsidizing Chinese firms and stealing American trade secrets.
No details of the talks have been released. But private sector analysts say Beijing is willing to change details of its plans so long as it preserves the ruling Communist Party’s dominant economic role.
The Trump administration has imposed 10% tariffs on $200 billion in Chinese imports and 25% tariffs on another $50 billion. The Chinese have retaliated by targeting $110 billion in U.S. imports.
Trump said Sunday he also planned to impose 25% tariffs on another $325 billion in Chinese products. That would extend penalties to everything China ships to the United States, its biggest foreign customer.
A stumbling block in the talks is U.S. insistence on an enforcement mechanism with penalties if Beijing fails to keep its promises. The Trump administration wants to keep tariffs on Chinese imports to maintain leverage over Beijing.
Chinese negotiators have balked at what economists say they might see as giving Washington too much control.
“It is not completely an economic issue,” said Ma. “After all, it concerns the rights of a sovereign country.”
https://apnews.com/b1364288d44341368a9c013f5491d6d2
CNBC: Oil dips as US-China trade war intensifies, but Gulf tensions mount
PUBLISHED TUE, MAY 7 2019 5:54 AM EDT
KEY POINTS
- U.S. President Donald Trump says new tariffs will be placed on Chinese goods on Friday.
- The trade war could dent already weak growth in oil demand.
- U.S. sanctions against Iran and Venezuela is keeping oil supply tight
U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. The comments dragged on both Asian and U.S. stock markets.
Brent crude oil futures fell $1.10, or 1.5%, $70.14 per barrel around 12 p.m. ET (1600 GMT).
U.S. West Texas Intermediate crude futures were down 93 cents, or 1.5%, at $61.32 per barrel.
“An escalation in the U.S.-China trade war has brought oil prices under renewed pressure,” said Abhishek Kumar, head of Analytics at Interfax Energy in London.
“The spat has reinvigorated demand-side concerns, given that the conflict has been adversely impacting prospects for global economic growth.”
On the supply side, oil markets remain tense as the United States has tightened sanctions on Iranian oil exports and plans to bulk up its forces in the world’s top oil-exporting region.
U.S. officials announced on Sunday that the movement of the Abraham Lincoln carrier strike group and a bomber task force towards the Middle East was meant to counter “credible threats”, but Tehran dismissed the move as “psychological warfare”.
U.S. sanctions have already halved Iranian crude exports over the past year to below 1 million barrels per day, and shipments to customers are expected to drop to as low as 500,000 bpd in May as sanctions tighten.
Washington has also placed sanctions on oil exports from Venezuela, a founding member of OPEC.
Many analysts concurred that production curbs agreed by OPEC and other producers, such as Russia, will continue to boost prices.
“The recent Brent pullback has taken prices too low in the face of tight fundamentals and growing supply risks, just as refiners come back from extended spring turnarounds,” Goldman Sachs said.
The U.S. bank said “we therefore expect a near-term Brent rebound,” although it added that “beyond the next couple months ... all these supply and demand cross-currents will dissipate to bring a balanced global oil market, once new (U.S.)Permian transport capacity is online and core-OPEC ramps up.”
Commerzbank wrote that OPEC is currently producing significantly less oil than is needed.
“Production in Venezuela and Iran is likely to decrease further because of the U.S. sanctions,” it said.
https://www.cnbc.com/2019/05/07/oil-market-us-china-trade-war-sanctions-on-iran-venezuela-in-focus.html?
Source: Dinar Recaps
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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