Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil. China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November. “Wilful threats of high tariffs are not the right way to get along with…
Tag: International trade
The IMF boss is right to say ‘buckle up’ – the global economy is facing multiple menaces
Little more than 48 hours passed last week between a warning from the IMF chief, Kristalina Georgieva, that “uncertainty is the new normal” and Donald Trump’s latest tariff onslaught – this time aimed at China. Markets plunged on Friday after Trump threatened to levy punitive additional tariffs of 100% on Chinese goods in retaliation for Beijing’s blocks on exports of rare earth minerals. The world’s finance ministers and central bankers will meet in Washington this week for the annual meetings of the IMF and World Bank. In her curtain-raiser speech…
China steps up control of rare-earth exports citing ‘national security’ concerns
China has increased restrictions on exports of rare earths and related technologies as Beijing tightened its grip on the products that are critical for use in smartphones and fighter jets. China’s commerce ministry announced the restrictions on Thursday, arguing damage had been caused to its “national security” from exports of the technologies – both directly or indirectly – to foreign military. The restrictions require government permission for the export of technology used to mine, process or recycle rare-earth minerals or make magnets from it, which could have dual use. The…
Trump’s reported pause on Taiwan weapons aid sparks fears he is using island for China trade deal
Donald Trump’s reported pause on $400m (£297m) in weapons aid to Taiwan has fuelled fears he is using US support of the island to negotiate with China. Trump’s pause on weapons provisions, if confirmed, included orders for lethal munitions and autonomous drones, but could still be reversed, the Washington Post reported on Friday. It came amid US efforts to negotiate a trade deal with China after a long and punishing trade war, and hours before Trump and China’s leader Xi Jinping spoke on the phone on Friday. Trump said they…
Chinese economy slows amid Trump trade war and weaker consumer spending
China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year. The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds. Economists were split over whether policymakers should introduce more near-term fiscal support to hit their annual 5% growth target, with…
UK’s new business secretary Peter Kyle expected to visit Beijing in first week
The UK’s new business secretary, Peter Kyle, is expected to fly to Beijing this week as part of Keir Starmer’s continuing efforts to revitalise the UK’s trade relationship with China and provide growth to the British economy. The former science and technology secretary, who was promoted in Friday’s government reshuffle, is expected to land in China on Wednesday, picking up the schedule of his predecessor, Jonathan Reynolds, who is now the chief whip. Kyle will first travel to Washington as part of the preparations for Donald Trump’s state visit to…
‘Vital to be friends’: Putin, Xi and Modi meet in message to western counterparts
They stood together like old friends, heads thrown back in jovial laughter, clutching one another’s hands affectionately. Except this was no ordinary gathering of three men, but a meeting of three of the most powerful non-western leaders: Vladimir Putin, Xi Jinping and Narendra Modi. The overt displays of intimacy were widely regarded by observers as a telling message of defiance aimed at their western counterparts, in particular Donald Trump, who just a few days earlier had slapped India with 50% import tariffs, among the harshest of the US president’s trade…
Trump tariffs: global parcel shipments to US lose exemption
The US tariff exemption for package shipments valued under $800 officially ended on Friday, raising costs and disrupting supply chain models for a range of businesses, with Trump administration officials saying the change would be permanent. There is now a six-month transition period under which postal service shippers can opt to pay a flat duty of $80-$200 per package depending on the country of origin, the officials added. The US Customs and Border Protection (CBP) agency began collecting normal duty rates on all global parcel imports, regardless of value, after…
Trump’s China trade truce extension spurs market rally
Donald Trump’s decision to extend a truce in the trade war with China has triggered a stock market rally across the globe. On Monday night, the US president signed an executive order extending the deadline for higher tariffs on China until 10 November. Beijing said early on Tuesday it would suspend additional tariffs on US goods for a further 90 days. In response, markets in Japan and Australia hit record highs on Tuesday, as expectations grow that the US and China could secure a trade agreement before the end of…
Why Peak China may finally have arrived | George Magnus
Proclamations about the inevitability of China’s dominance of the global economic system, or the so-called Chinese century, were made long before Donald Trump’s attempts to stymie its trade with the US. Common concerns about coercive politics and human rights aside, some notions of China as an unstoppable economic, technological and military behemoth sit alongside others focused more on an increasingly sclerotic, over- centralised political economy, that depends on wasteful economic stimulus, and features poor governance and institutions. The fusion of these notions suggests that we may already have reached “peak…