Chinese VP Says World Cannot Shut China Out

“China’s development can’t shut out the rest of the world. The world’s development can’t shut out China."

Chinese Vice President Wang Qishan took an indirect jab at the United States during his opening address to the World Peace Format Beijing’s Tsinghua University.

RELATED:'Pacific Alliance' Reaches Out To Other Regional Trade Blocs

The Chinese Vice President pointed out the faults of the U.S. administration’s pressure on China, while highlighting the fact that Beijing plays a critical role in the world’s economic development. “China’s development can’t shut out the rest of the world. The world’s development can’t shut out China,” Wang stated.

Wang also warned against “protectionism in the name of national security”, without mentioning the United States, and called major powers to make more contributions to global peace and stability.

The Trump administration has accused China of engaging in unfair trade practices that discriminate against U.S. firms, forced technology transfers and intellectual property rights theft, all charges Beijing has denied.

Both sides have leveled increasingly severe tariffs on each other’s imports.

China has also been angered by U.S. sanctions against Chinese tech giant Huawei Technologies Co Ltd [HWT.UL] over national security concerns.

Wang, who is extremely close to Chinese President Xi Jinping and who only rarely speaks in public, reiterated China’s commitment to opening up.

The world needs China just as much as China needs the world, said Wang, who became vice president last year having previously lead Xi’s fight against deep-rooted corruption.

“Large countries must assume their responsibilities and set an example, make more contributions to global peace and stability, and broaden the path of joint development.” he said.

“Development is the key to resolving all issues,” Wang told an audience that included senior Beijing-based Western diplomats and former European Council President Herman Van Rompuy.

Top representatives of the United States and China are organizing a resumption of talks for this week to try to resolve the year-long trade war between the world’s two largest economies.

The two sides have been in communication by telephone since last month’s G20 summit, when U.S. President Donald Trump and Xi agreed to relaunch talks that had stalled in May.

Talks between the two sides broke down in May after U.S. officials accused China of pulling back from commitments it had made previously in the text of an agreement that negotiators said was nearly finished.

The two countries have been at loggerheads over a series of other issues, from human rights to the disputed South China Sea and U.S. support of self-ruled Taiwan, claimed by China as its own.

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FedEx apologizes to Huawei for ‘mis-routing’ its packages to US ‘in error’

American logistics giant FedEx has apologized to Chinese tech firm Huawei after several of their packages were re-routed to the United States, where authorities are waging a broad campaign against the company.

Huawei spokesman Joe Kelly said that the diverted packages contained “important commercial documents,” and that the incident had “undermined their confidence” in the US-based shipping company. Two packages containing “urgent documents” sent from Japan ended up being sent to the US, while Huawei’s shipping agent blocked two more from Vietnam, which FedEx had also attempted to re-route.

Read more Who’s afraid of Huawei? Why Google’s ‘fatal blow’ may actually be a sign of desperation

Huawei says that it has since only received one of the nearly diverted packages from Vietnam, and that tracking records indicate the second is on the way.

We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” the spokesman continued.

For its part, Fedex insists that there were “no external parties” involved in the decision, and apologized for the incident, calling it a matter of “mis-routing in error.” They also posted a statement to Chinese social media apologizing for “mishandling” the packages.

We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession,” a FedEx spokesman said. While the company acknowledged it was aware of the United States’ actions against Huawei, it didn’t elaborate on how this might affect business relations in the future.

Also on rt.com US-China trade war could cost global economy $600 billion....

The US recently placed Huawei onto an “entities list” over claims the company is an espionage threat due to alleged ties with the Chinese government. Although both Huawei and the Chinese government have denied the claims, and despite that, the US has yet to produce any actual proof, Washington has begun to enforce a ban against the company, encouraging governments around the world to follow suit.

The issue has become an important point of conflict between the US and China as a part of the countries’ ongoing trade war. Several other companies including Google and Microsoft have suspended business with Huawei in order to conform to the US’ trade ban.

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Chinese newspaper mocks Trump's claim of winning trade war as 'wishful thinking'

SHANGHAI (Reuters) - Chinese state media kept up their criticism of U.S. President Donald Trump’s trade policies, with a newspaper on Tuesday describing as “wishful thinking” Trump’s belief that a fall in Chinese stocks was a sign of his winning the trade war.

As the world’s two biggest economies remained locked in a heated tariff dispute, Beijing and Washington have kept up a blistering rhetoric with threats and counter-threats of more punitive trade measures.

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The editorial in the official China Daily underscored an increasingly aggressive stance adopted by Chinese state media against Trump, a shift from their previous approach of tempering any direct criticism against the U.S. president.

On Monday, the overseas edition of the Communist Party’s People’s Daily newspaper singled out Trump, saying he was starring in his own “street fighter-style deceitful drama of extortion and intimidation”.

China proposed retaliatory tariffs on $60 billion worth of U.S. goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, following the Trump administration’s plan for a higher 25 percent tariff on $200 billion worth of Chinese imports.

https://s4.reutersmedia.net/resources/r/?m=02&d=20180807&t=2&i=1290943644&r=LYNXMPEE7601U&w=1200FILE PHOTO: Shipping containers are seen on a cargo vessel at the Dachan Bay Terminals in Shenzhen, Guangdong province, China July 12, 2018. REUTERS/Stringer/File Photo

The China Daily referred to a Saturday Tweet by Trump which said “Tariffs are working far better than anyone anticipated. China market has dropped 27 percent in last four months.”

China’s stock market was performing poorly before the U.S. administration imposed tariffs, said the English-language newspaper, asserting that the downturn was partly due to Beijing’s attempts to cut corporate debt.

The paper said Trump’s claim that “tariffs are working big time” was undermined by data showing the U.S. trade deficit climbed $3 billion to $46.3 billion in June, the first increase in four months.

The China Daily is often used by the government to communicate its message to an international audience.

Trump has repeatedly criticized China for its trade deficit with the United States, saying it showed Beijing was engaging in unfair trade practices.

Chinese state media has also been promoting the message that the country’s economy is strong enough to ride out the trade war.

https://s4.reutersmedia.net/resources/r/?m=02&d=20180807&t=2&i=1290943643&r=LYNXMPEE7601V&w=1200FILE PHOTO - Shipping containers are seen at the port in Shanghai, China April 10, 2018. REUTERS/Aly Song/File Photo

In a separate commentary, in the People’s Daily overseas edition, a researcher at the Commerce Ministry reiterated this stance, saying China was strong and resilient enough to weather the trade dispute.

“We absolutely have reason to believe that during this complex trade friction, and relying on the domestic market, China can continue to enhance its leading position in the global economic and industrial system,” researcher Mei Xinyu wrote.

Despite the U.S. tariffs, a Reuters poll of economists forecast China’s exports to have grown in July, though many see a deteriorating outlook for shipments especially if Trump goes ahead with his threats to slap more punitive duties on Chinese imports

Recent data showed growth in the world’s second largest economy has already started to cool. The government has responded by releasing more liquidity into the banking system, encouraging lending and promising a more “active” fiscal policy.

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With Fresh Tariffs On China, Donald Trump Unleashes Trade War

Washington: Punishing US tariffs on Chinese imports took effect early Friday, marking the start of President Donald Trump's trade war with the largest US trading partner and intensifying the anxieties of global industry.

Beijing was expected to immediately retaliate dollar-for-dollar with its own counter-tariffs after Trump imposed 25 percent duties on about $34 billion in Chinese machinery, electronics and high-tech equipment including autos, computer hard drives and LEDs.

The arrival of the long-threatened tariffs marked the failure of months of dialogue between the world's two largest economies and came amid hand-wringing from industry leaders who fear shrinking markets, higher prices and slower growth.

The tariffs' arrival also made real a campaign-trail pledge for Trump, who has fulminated for years against what he describes as Beijing's underhanded economic treatment of the United States.

US officials accuse China of building that country's emerging industrial dominance by stealing the "crown jewels" of American technological know-how through cyber-theft, forced transfers of intellectual property, state-sponsored corporate acquisitions and other alleged practices.

And they say the current US economic strength, as well as America's soaring trade deficit in goods, means the world's largest economy can outlast its rivals in the current tit-for-tat battle, presenting Washington with a rare window of opportunity to settle old scores.

The US trade deficit in goods with China ballooned to a record $375.2 billion last year, further stoking Trump's ire.

But it remained to be seen whether the American president would carry out recent threats to respond to any Chinese retaliation with maximum pressure -- raising US duties on Chinese goods in increments of $200 billion until virtually all the goods America buys from its largest trading partner are subject to duties.

But, aboard Air Force One on Thursday en route to Montana, Trump erased any hope of an about-face. He said Washington stood ready to slap duties on hundreds of billions more in Chinese imports once Friday's tariffs took effect.


Red states feel the pinch

As the tariffs' start approached at midnight, the US central bank warned Thursday the impending trade battle was beginning to darken the otherwise blue skies of the robust American economy, now starting its 10th year of recovery.

Businesses around the United States told the central bank that spending plans had been scaled back or postponed and they also warned of further adverse effects from the trade conflict, according to a Federal Reserve survey.

An industrial survey confirmed that companies were white-knuckling their way through Trump's intensifying, multi-front trade assault.

"We're starting to see signs of inflation, not sharp inflation, but definitely inflation," Anthony Nieves, head of a services industry survey committee for the Institute for Supply Management, told reporters on Thursday.

The start of the trade war likely confirms the widening rupture between Trump and his own Republican Party, a traditional champion of free trade and big business whose members, while critical, have so-far shrunk from curtailing the White House's trade powers.

But, with the GOP facing strong political headwinds ahead of November's mid-term elections, China's countermeasures left both Trump and Republican lawmakers increasingly vulnerable to voters who appear likely to boost the fortunes of opposition Democrats.

The powerful US Chamber of Commerce, a principal corporate lobby, said this week that retaliation from China, Canada, Mexico, the European Union and others against Trump's tariffs was already affecting $75 billion in US exports -- much of this from states that had narrowly supported Trump in 2016's presidential elections.

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How US-China Dispute May Turn Into Trade War With No End in Sight

China is not going to bend under Donald Trump's pressure, analysts told Sputnik, referring to Beijing's recent statement issued after Commerce Secretary Wilbur Ross' visit to the country. According to the analysts, the ongoing dispute risks turning into a new round of a trade war.

China and the United States can cooperate in the sphere of trade, but if Washington takes measures against Beijing, the latter will certainly respond in a tit-for-tat manner, said Bian Yongzu, a researcher with the Chongyang Institute for Financial Studies at the People's University of China.

"If the US deliberately creates trade barriers and provokes a trade war, then this is not a market problem, it is already a political problem," Bian told Sputnik China. "Problems cannot be solved this way. According to some experts, the US is deliberately exerting pressure on China."

On May 29 the Trump administration signaled that the tariff war is far from being over: "the United States will impose a 25 percent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the 'Made in China 2025' program," the statement said specifying that the measures will take effect on June 15 and 30.

The announcement preceded Commerce Secretary Wilbur Ross' summit with Chinese Vice Premier Liu He on June 2-3 in Beijing.

In response to Washington's sudden change of heart which de facto undermined the May 19 joint statement on the suspension of the tariff frictions, Beijing made it clear that once the US imposes new restrictions on Chinese imports, it would nullify all previous agreements reached by the sides.

"China does not demonstrate cowardice, but at the same time does not exert pressure on the US amid trade frictions," Bian pointed out, stressing that Beijing has "a whole set of adequate countermeasures" to respond to Washington's tariff war.

He added that while "China and the United States can sit down at the negotiating table calmly, it means that there remains an opportunity to solve the problem and both sides can achieve the desired results from the negotiations."

According to observers, the US representative has not gained any tangible results during the recent meeting.

For their part, the Chinese have issued a statement saying that China is willing to increase imports from other countries, "including the US," to address the needs of the population of the People's Republic of China (PRC).

"All economic and trade outcomes of the talks will not take effect if the US imposes any trade sanctions including raising tariffs," the statement emphasized.

According to Andrei Volodin, an analyst at the Institute of Contemporary International Studies of the Diplomatic Academy, Trump's assertiveness was resisted by Chinese President Xi Jinping, who does not intend to give in without reciprocal moves on the part of the US.

"China behaves logically, because the US trade deficit is the result of the inefficient American economy," the Russian academic opined. "The US deficit in trade with China began to reach its peak in 2005-2006. At that time, China was not so active either in the US market or in the global economy. Therefore, one could say that China's 'dumping prices' didn't affect the American economy. China understands this perfectly. It also makes it clear that its huge financial resources are invested in US securities, which means that the two countries will have to negotiate."

For its part, Chinese media outlet Global Times presumed that the ongoing trade dispute could become a "protracted" one: "Given the US may change its mind and make new requests from time to time, it is difficult for both sides to nail down a consistent trade pact and stabilize their trade relationship."

Now it all depends on whether the US will give up its plan to impose additional tariffs on Chinese goods on June 15. If Trump's threats become reality the trade war will continue to gain pace.

Meanwhile, China is seeking opportunities to beef up its presence on global markets. Speaking to Xinhua, Chinese Ambassador to Russia Li Hui singled out the Eurasian Economic Union which has "great potential" according to the diplomat. On May 17, the EAEU and China inked an agreement on trade and economic cooperation in Astana.

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