EU business lobby fears losses as China promises to import more from US
UNTV News • January 16, 2020 • 547
Beijing – A European business lobby in China on Thursday said Beijing’s promise to buy $200-billion worth of products from the United States in two years as part of the first phase of a bilateral trade agreement could result in a drop in imports from Europe.
“Will our exports to China be possibly hurt? Possibly yes,” European Union Chamber of Commerce President Joerg Wuttke told reporters.
He warned that Chinese commitments could mean that it stops purchasing European products in the relevant sectors to substitute them with US imports.
In the agreement signed in Washington on Wednesday, China has pledged to boost its imports of US goods and services by $200 billion over the next two years.
This includes $32 billion in additional agricultural purchases, $52 billion in energy products and $78 billion in additional manufactured goods.
In 2018, the US had exported products worth $120 billion to China.
“The US always stood for competition and openness and it’s very interesting to see only that China gets told now what to buy, where to buy (…) All of a sudden, the lead of the free world is turning into a system that resembles the Chinese system. It’s ironic,” Wuttke said.
Although the EU trade representative welcomed the deal as a “good news” that meant the end of the “negative spiral” caused by the tariff war between the US and China, he criticized what he called a trend of “managed trade” and said it was “rewriting globalization”.
The business lobby also expressed doubts over specific parts of the agreement, such as the emphasis on bigger purchases of steel, even though China has been struggling with overproduction in the sector.
Wuttke welcomed Chinese Vice Premier Liu He’s statement that the deal would not affect third parties.
“(The statement) indicates that China might not be willing to just be forced to buy American products, they still want to maintain the right to source globally where products are (the) cheapest and best,” Wuttke said.
How the conflict between Beijing and Washington has been resolved – at least partially and temporarily – has not surprised European companies, which have been hit by US tariffs in sectors like Spanish olive oil.
“There’s this particular ban on Scottish whiskey and Spanish olive oil. There might be Italian or Greek olive oil but the fact is the American consumer gets told ‘you buy only this’,” Wuttke said.
“We do not like this kind of protectionism. Tariffs are something like an addiction, once you have it you don’t get rid of it, and certain interest groups will defend them. Getting tariffs down, as we learned last night, is very difficult,” he said.
Wuttke said that the real challenge in resolving the trade dispute lay in the “tech war”.
“There is tremendous pressure from the US on European business, you know the Huawei 5G story. But then again, like China, Europe doesn’t like to be told what to buy, where to buy,” he insisted.
Wuttke said EU firms suffered from the trade war because most of them operated in China and sold to China.
“We happen to sell to many Chinese exporters so indirectly many of us took a hit by this,” he said.
As part of Wednesday’s deal, the US agreed to cut tariffs on $120-billion worth of Chinese imports (imposed in September) from 15 percent to 7.5 percent and also suspend plans for 15 percent tariffs on $150 billion of Chinese goods that had been scheduled to go into effect last month.
However, tariffs ranging between 15 and 25 percent will remain in place on $370 billion worth of goods: roughly two-thirds of all US imports from China. EFE-EPA
China’s embassy in Kazakhstan has warned its citizens on Thursday (July 9) to take precautions against an outbreak of pneumonia in the country that it says is more lethal than COVID-19.
It said in a statement on its official website late on Thursday that there had been a “significant increase” in cases in the cities of Atyrau, Aktobe and Shymkent since mid-June.
On Friday (July 10), however, Kazakhstan’s healthcare ministry branded Chinese media reports based on the embassy statement as “fake news”.
The ministry said its tallies of bacterial, fungal and viral pneumonia infections, which also included cases of unclear causes, were in line with World Health Organisation guidelines.
Chinese foreign ministry spokesman Zhao Lijian declined to comment on the issue directly during a Friday (July 10) briefing in Beijing, instead referring media to “the relevant authorities in Kazakhstan”.
“China also hopes to obtain information on this,” Zhao said.
Kazakhstan, which imposed a second lockdown this week to rein in the coronavirus pandemic, has a tally of almost 55,000 COVID-19 infections, including 264 deaths. The number of new cases rose on Thursday to a daily record of 1,962.
On Tuesday (July 7), state news agency Kazinform said the number of pneumonia cases “increased 2.2 times in June as compared to the same period of 2019”.
In its statement, the Chinese embassy had said pneumonia in Kazakhstan killed 1,772 people in the year’s first half, with 628 deaths in June, including Chinese citizens.
It is unclear whether the said pneumonia it referred to was caused by a virus related to coronavirus or a different strain. (Reuters)
The international community has criticized the U.S. decision to quit the World Health Organization (WHO), saying the move has posed negative influences on its own anti-pandemic efforts and also global cooperation.
The United States on Tuesday officially submitted its notification of withdrawal from the WHO to the UN secretary-general, following an announcement made in May. The move came amid a rising number of coronavirus cases throughout the Americas over the past week.
The administration’s move to formally withdraw from WHO is short-sighted, unnecessary, and unequivocally dangerous, CEO of the United Nations Foundation Elizabeth Cousens said in a statement.
She said the WHO is the only body able to lead and coordinate the global response to COVID-19 and terminating the relationship undermines the global effort to beat this virus.
Germany’s Health Minister Jens Spahn said the “U.S. withdrawal from the WHO is a setback for international cooperation,” and called for global coordination which is necessary for fighting the pandemic.
“The U.S. withdrawal from WHO is a mistake. It is the public health authority for the world’s poorest and many will now see the U.S. as less reliable, diminishing its influence,” tweeted Tom Tugendhat, a UK Conservative Member of Parliament and also chairman of the Foreign Affairs Committee.
Italian Health Minister Roberto Speranza made comments saying that the U.S. withdrawal decision is “serious and wrong”.
With regard to the U.S. move of pulling out from international organizations and treaties, Pascal Boniface, Founder and Director of French Institute for International and Strategic Affairs (IRIS), said its unilateralism inclination sabotages the current international mechanism.
“The move of withdrawing from international organizations has become a customary gimmick by the U.S. government. The U.S. pulled out from the United Nations Educational, Scientific and Cultural Organization, the Paris Agreement, the Iran nuclear deal, and the Intermediate-Range Nuclear Forces Treaty,” he said.
“We can say that the U.S. withdrawal from the WHO has reflected the overall attitude of the government, which broke the current international mechanism and multilateralism. It is to pursue unilateralism,” he added. (Reuters)
United States Deputy Secretary of State Stephen Biegun held a meeting with South Korea’s top security adviser on Thursday (July 9) before heading off to Japan in a trip overshadowed by stalled denuclearisation talks with North Korea.
According to Seoul’s presidential office, Biegun met with Suh Hoon, a former spy chief, and discussed the North’s recent movement and ways to foster peace on the Korean peninsula. Suh said he “highly appreciated” the U.S. envoy’s efforts to resume talks with North Korea.
North Korea has said it has no intention of sitting down again with the United States, though U.S. President Donald Trump said this week he would be open to another summit with leader Kim Jong Un. (Reuters)
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