EU business lobby fears losses as China promises to import more from US
UNTV News • January 16, 2020 • 573
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
U.S. President Donald Trump has agreed to give China’s ByteDance 45 days to negotiate a sale of popular short-video app TikTok to Microsoft Corp, two people familiar with the matter said on Sunday (August 2).
U.S. officials have said TikTok under its Chinese parent poses a national risk because of the personal data it handles. Trump said on Friday (July 31) he was planning to ban TikTok in the United States after dismissing the idea of a sale to Microsoft.
But following a discussion between Trump and Microsoft CEO Satya Nadella, the Redwood, Washington-based company said in a statement on Sunday that it would continue negotiations to acquire TikTok from ByteDance, and that it aimed to reach a deal by Sept. 15.
It was not immediately clear what changed Trump’s mind. Banning TikTok would alienate many of its young users ahead of the U.S. presidential election in November, and would likely trigger a wave of legal challenges. Several prominent Republican lawmakers put out statements in the last two days urging Trump to back a sale of TikTok to Microsoft.
The negotiations between ByteDance and Microsoft will be overseen by the Committee on Foreign Investment in the United States (CFIUS), a U.S. government panel that has the right to block any agreement, according to the sources, who requested anonymity ahead of a White House announcement. Microsoft cautioned in its statement that there is no certainty a deal will be reached. (Reuters)
U.S. Secretary of State Mike Pompeo said on Thursday (July 30) the “tide is turning” in U.S. dealings with China, saying there is international support for American policies, including the step-up of maritime maneuvers in the South China Sea.
Reflecting rising tensions between Washington and Beijing, Pompeo took a tough line on China in testimony before the Senate Foreign Relations Committee.
“We see the Chinese Communist Party for what it is: the center threat of our times,” Pompeo said.
In recent days, Washington and Beijing have each closed one of the other country’s consulates – the United States closing China’s office in Houston and China retaliating by shuttering the U.S. facility in Chengdu – and Pompeo recently announced an end to Hong Kong’s special trading status.
“We closed the consulate in Houston because it was a den of spies,” Pompeo said.
Pompeo was testifying publicly at Foreign Relations Committee hearing for the first time in 15 months, discussing the State Department’s annual budget request.
President Donald Trump’s administration has tried to slash the State Department budget since it took office, which has been rejected by Congress every year. Democratic lawmakers told the hearing that they would not support steep cuts this year either. (Reuters)
New South Wales (NSW) Police on Monday (July 27) warned students of Chinese backgrounds studying in Sydney to be aware of a ‘virtual kidnapping’ scam that has obtained millions in payments from unsuspecting victims.
Victims are called by the criminals purporting to be from a Chinese authority like the police or tax department, “the caller then convinces the victim that they have been implicated in a crime in China, or that their identity has been stolen, and that they must pay a fee to avoid legal action, arrest or deportation” said NSW Police in a statement.
“Essentially threatening harm against people, family members in China unless they contrive a photograph that makes them look like they have been kidnapped. Then they encourage the person to lock themselves away in a hotel room, turn their phones off, cease all contact,” Director of NSW Police State Crime Command, Darren Bennett told media.
Bennett added that the phone calls are becoming very common and encourage anyone receiving one to not pay any money. (Reuters)
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