China Loosens Foreign Auto Rules, in Potential Peace Offering to Trump China—Not Trump—Could Lose Most in a Trade War With US Asian shares higher on optimism about global growth Beijing Forges Ahead With 'Made In China' Policy, Targeted By Proposed US Tariffs Asian stocks rise after Wall Street gains for 2nd day

China Loosens Foreign Auto Rules, in Potential Peace Offering to Trump

Beijing said makers of electric cars would no longer be required to find a Chinese partner, with the rest of the auto industry to follow.

SHANGHAI — Beijing and Washington have threatened each other with tariffs for weeks, raising the prospect of a trade war. The move on Tuesday by Beijing nevertheless came with a warning. Email us at [email protected] . That measure helped bring on the Great Depression by accelerating a contraction in global trade. His ability to retaliate is limited. Boeing Dreamliner 787 planes sit on the production line at the company's final assembly facility in North Charleston, South Carolina, on December 6, 2016.

China has been particularly unapologetic about its strategic industrial policy, dubbed "Made in China 2025." Proposed U.S. tariffs take special aim at this policy, which a recent report by the U.S. The Nasdaq composite climbed 1.7 percent to 7,281.10. Reblog Share Tweet Share Recently Viewed Your list is empty. Both countries have changed such that yesterday and today’s relationship can’t go on forever.

Lust vigorously denies that U.S. producers have engaged in dumping and says his organization submitted thousands of pages of data to the Chinese government to demonstrate they did not. Further misconduct led the Commerce Department to impose the ban, according to a statement from the agency. Contact Us Closed Captioning Site Map > Most stock quote data provided by BATS. Data released on Tuesday indicated that growth might have been cooling by the end of the quarter.

Accessibility concerns? But on Tuesday, China took a step to lower tensions, offering to make it easier for foreign automakers and aerospace manufacturers to own factories in the country. As expected, China also took steps to impose steep duties on imports of sorghum from the United States, an action that could hurt farmers in states where Mr. China—Not Trump—Could Lose Most in a Trade War With U.S.

China—Not Trump—Could Lose Most in a Trade War With US

President Xi Jinping was smart to strike a softer tone on trade earlier this month.

TRADE TENSIONS: China imposed preliminary tariffs of 178.6 percent on U.S. sorghum in an anti-dumping investigation. What to Read Next Did Air Force B-52 Bombers Just Practice an Attack on China? Twenty years ago, China was economically small compared to the United States. Its disposable income  in 1998 was 1/50th (no, that’s not a typo) of America’s. It will not tolerate another decade of China mining the relationship for resources to seize technological leadership.

ZTE buys microchips from Qualcomm ( QCOM ) and glass from Corning ( CNIG ) , and the company is the fourth biggest smartphone supplier in the United States. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Industrial production rose 6 percent in March, less than most economists had expected. Many American consumers and companies benefit from Chinese-made goods, and a number of economists doubt that Mr.

For manufacturers of electric cars, as well as for companies that make jetliners, helicopters and drones, Beijing plans to move even faster, eliminating foreign ownership limits this year. Trump enjoys political support. By Bill Powell On 4/18/18 at 1:53 PM Xi Jinping delivers a speech at the Great Hall of the People on November 15, 2012 in Beijing, China. Its domestic economy could not absorb everything it produced.

Any forced contraction in their surpluses requires either more debt or more unemployment.” And though Xi doesn’t have to worry about voters, he does have to worry about protesters in the streets. Copyright © 2018 The Associated Press. The Trump administration sees the policy as another effort to steal U.S. technology and push American firms out of the Chinese market. The United States told the World Trade Organization it has agreed to discuss with China the Trump administration's tariff increases on steel and other Chinese goods.

Its GDP had just breached $1 trillion, which was barely 1/9th of America’s. There can’t even be misplaced faith that the next leader will be different, given Xi’s chairmanship-for-life. She was previously a Beijing-based correspondent for Time and an editor at the magazine's Hong Kong office. The company's shares were suspended from trading in Hong Kong on Tuesday following the US announcement. All times are ET.

Asian shares higher on optimism about global growth

Trump’s focus on lowering the trade surplus with a single country will help the United States. Loosening limits for electric carmakers and aerospace manufacturers is notable because those are two areas where Beijing and Washington have been increasingly at loggerheads. The White House has threatened to levy tariffs on $150 billion in Chinese-made goods, and Beijing has threatened to retaliate, dollar for dollar.

So it exported the difference. Hillary Clinton invoked this possibility on the campaign trail in explaining why the United States was in no position to get tough with China. He sounded reasonable in early April because he can’t really want any part of this game of chicken. All rights reserved. The Made in China plan also calls for Chinese companies to control 70 percent of the domestic market in key sectors by the year 2025.

You’re using a browser set to private or incognito mode. U.S. consent to China’s WTO accession was driven by farmers and a relatively small number of multinationals. The economic relationship will shrink. In 2017, she shared an Overseas Press Club award for a series about the Internet in China. Currency clash During his presidential campaign, Trump repeatedly accused Beijing of undervaluing its currency to boost exports.

Another measure experts look to for insight into China’s economy is trade, which at one time was a major driver of Chinese growth. Home Grown On their face, the numbers suggest that American businesses have become dependent on China. President Trump’s trade officials last month accused the Chinese government of using bureaucratic licensing and approval procedures to compel American companies to give up valuable trade secrets .

Beijing Forges Ahead With 'Made In China' Policy, Targeted By Proposed US Tariffs

"Why should one country take aim at another country's policy to develop its own economy?" a Chinese auto industry leader says of U.S. threats and tariffs. "Just mind your own business."

China responded with its own list of U.S. goods for retaliation. To continue reading articles in this mode, please log in to your Post-Gazette subscription account. Ten years ago, China had risen but the United States had more pressing concerns — China’s economic role was still minor in comparison to self-inflicted American financial wounds. Derek Scissors is a resident scholar at the American Enterprise Institute (AEI) and concurrently chief economist of the China Beige Book.

By May 2017, he said the manipulation had stopped, and he personally took the credit . All Rights Reserved. Over the last decade, however, it has been far eclipsed in importance by Chinese investment and household spending. By The New York Times | Source: U.S. Chinese officials deny those claims. Going into the Chinese market without a joint venture partner would mean that Tesla could keep better control of its technology and retain all the profits.

It’s the only economy in the world big enough, and with sufficient capital markets, to absorb those inflows. If China did not buy American debt, it would have to repatriate the money it earns from trade, which it receives in dollars. FILE- In this April 5, 2018, file photo, the facade of the New York Stock Exchange is shown. Play a quick game of solitaire or Sudoku. Most Chinese tech firms, such as electric car makers, are not yet mature enough to compete in U.S. markets.

Or switch your browser from private or incognito mode to normal mode. In 2018, however, reasons for U.S. acceptance of continued Chinese trade predation are waning. Dancing with the Dragon? Your subscription supports journalism that matters. Now, he seems to be having second thoughts. Factset: FactSet Research Systems Inc. The latest figures show exports to the United States are growing considerably faster than China’s purchases of American goods.

Asian stocks rise after Wall Street gains for 2nd day

BEIJING (AP) — Asian stock markets followed Wall Street higher on Wednesday after Beijing added to a swelling trade dispute with Washington by hiking tariffs on U.S. sorghum.

Easing electric car limits may not be enough to bring the Trump administration to the negotiating table, much less reach a deal. The German company has been making ambitious plans to build electric cars in China, and only has a loose and deliberately temporary joint venture with Anhui Jianghuai Automobile Group to do so. President Donald Trump stewed about Beijing on Twitter, Chinese President Xi Jinping played the role of the grown-up and struck a softer tone.

To do so would require selling those dollars and buying the renminbi. The U.S. stock market opens at 9:30 a.m. Copyright © 2018 by WTOP. Others, like telecom giant Huawei, are already effectively barred by the U.S. government on national security grounds. The Cabinet's planning agency said it would start by allowing full foreign ownership of producers of electric cars, with similar action later on commercial and traditional passenger vehicles.

But there has been an obvious shift  from enthusiasm to caution in the American business community as a whole. The deposits could discourage imports of U.S. sorghum, hurting American producers. After a brief lull in the skirmishing, the trade battle between the United States and China is escalating once again. Not acceptable! — Donald J. All rights reserved. That could provoke more ire from President Trump, who had threatened to impose $150 billion in tariffs on Chinese products.

The White House has expressed more interest in creating jobs in the United States than in making it easier for American companies to build factories overseas. Even countries like Brazil and India, which have some of the world’s highest barriers to imports, do not have similar joint venture requirements. On April 10, Xi said his country was committed to becoming a more “open” market. The U.S. can respond in two ways.

Global stocks rise after Wall Street gains for 2nd day

Not a subscriber yet? Not coincidentally, the political community has simultaneously shifted from uncertainty to  borderline hostility . The Commerce Department said ZTE violated an agreement reached after the company was caught shipping U.S. goods to Iran. I hesitate to call it a [trade] war ... Trump (@realDonaldTrump) April 16, 2018 The rebuke from Trump contradicted a recent report from the Treasury Department saying that no US trading partner was manipulating its exchange rate.

The trade figures present a mixed picture of how painful those tariffs could be for China. China was once famous for assembling goods made from parts that had been bought elsewhere. It also isn’t clear whether the measures — part of a series of moves to relax trade rules for carmakers — will win over the auto industry. Beijing insisted on the special rule when it joined the World Trade Organization in 2001.

It can allow an increase in unemployment, as foreign producers take market share away from domestic companies. Xi, of course, does have one advantage in a trade war: He doesn’t have to worry about voters. Hong Kong’s Hang Seng added jumped 1.3 percent to 30,692.38 and the Shanghai Composite in mainland China gained 0.7 percent 3,111.93. A Commercial Aircraft Corp. of China Ltd. Want to know more?

It’s hard to be sure how Sino-American economic tensions will evolve this year. Xi Jinping aims to remain in power indefinitely, achieving Maoist goals with  21st century techniques . In a separate development, the Chinese government announced a timeline for lifting ownership limits on foreign automakers. It's more of a trade battle at the moment, but it's escalating," said Ian Mitchell, a trade expert and senior policy fellow at the Center for Global Development.

Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Over all, trade is not as important to China’s economy as it was a decade ago, suggesting the country could better weather a trade fight. A smartphone that is made in China, for example, might have a screen from Japan, memory chips from South Korea and a main processor from the United States.

China dangles an automotive carrot and wields a sorghum stick amid the tariffs tensions

China adopted a carrot and stick approach to the U.S. on Tuesday as the risk of a trade war between the two powerhouse economies continued to simmer. At ...

A Chinese Commerce Ministry official suggested at a conference in 2013 that the joint venture rule might be lifted, noting that China wanted to see its automakers start exporting to the West. The American president liked what he heard. “Very thankful for President Xi’s kind words on tariffs and auto restrictions,” Trump tweeted. But that, obviously, creates political problems. Trump does, and many of his constituents live in states that could be affected by Chinese tariffs on agricultural products or Boeing airplanes.

C919 aircraft stands under assembly in Shanghai in 2017. Check out our "About" page . That was in line with the previous quarter, but activity weakened toward the end of the period. Will tariffs be implemented? Those who predicted pro-market reform when Xi became general secretary of the Communist Party should  hide their heads  in embarrassment. The United States has long demanded better access to the Chinese market.

The story, which cited unnamed sources, said the officials believed China was unfairly restricting trade in these US services. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates. © 2018 Cable News Network. Elsewhere U.S. In fact, those parts and components long accounted for a sizable chunk of what China bought from the United States. Much of the global auto parts industry has already moved to China to avoid those tariffs.

After weeks of declines, U.S. stock prices soared in relief. Or it can increase government spending to keep overall demand high and unemployment relatively low. Beijing could try to intimidate Trump and hope he folds. GLOBAL ECONOMY: The Federal Reserve’s latest beige book survey found the outlook for the world’s No. After three rounds of tariffs and counter-tariffs, both actual and proposed, the U.S. and China appear deadlocked, with the possibility of a trade war still looming.

Sino-American Trade: We Know Where This Is Headed

 “If something cannot go on forever, it will stop.” -Herbert Stein It’s hard to be sure how Sino-American economic tensions will evolve this year. Will tariffs be implemented? Probably yes, but in reduced fashion. Will other barriers be raised? Yes, on investment. Who will come out ahead? Possibly China, but not for

Beijing now seeks to  displace foreign firms in high-end manufacturing  and technology. The moves on sorghum and foreign automakers take place amid heightened tension between the world’s two largest economies. Beijing responded by imposing tariffs on US imports worth around $3 billion . Experts are deeply concerned about how the situation is unfolding. A Time Warner Company. Trump has focused on China’s trade surplus with the United States, or the difference between what it sells to America and what it buys.

G.M., Volkswagen and others have learned to profit handsomely with their local partners, which have developed fairly few homegrown models attractive enough to win over Chinese customers. But the top executive at a Chinese automaker with no foreign partners argued at the time that the rule should be scrapped. Recommended Slideshows 51 In Pictures: The 50 Most Powerful Military Forces in the World 51 50 Best-Selling Albums in U.S.

Yet China’s hand isn’t that strong. China are an increasing concern. In Latest Trade Salvo, China Imposes 179 Percent Tariff On U.S. Hong Kong's Hang Seng rose 0.3 percent to 30,146.41 and Sydney's S&P-ASX 200 added 0.4 percent to 5,863.00. ENERGY: Benchmark U.S. crude added 31 cents to $66.83 per barrel in electronic trading on the New York Mercantile Exchange. Will other barriers be raised? It aims to do this not through comparative advantage, but via subsidies and scale achieved in sealed-off home market.

This escalated to the point that Trump ultimately threatened to impose new tariffs on $150 billion of Chinese goods. Demanding "reciprocity" might be a digestible political slogan, he said, but "for a negotiator on the other side, it's not that clear... Terms under which this service is provided to you. And in the first three months of the year, the trade surplus for goods hit a new high of $58 billion, according to Chinese data.

In new sign of trade battle, China slaps US sorghum producers with 179 percent deposit

The anti-dumping measure follows a U.S. ban on selling parts to Chinese tech firm ZTE.

History 44 In Pictures: Every U.S. Donald Trump signs a presidential memorandum, aimed at what he calls Chinese economic aggression, at the White House on March 22, 2018. Yes, import restrictions on specific U.S. companies could be painful to them, their suppliers and shareholders. WALL STREET: Major U.S. benchmarks finished mostly higher. China will not enter into any negotiations while under threats from the U.S.," Chinese Commerce Ministry spokesman Gao Feng told journalists last Thursday.

The contract gained 30 cents on Tuesday to settle at $66.52 per barrel. Yes, on investment. It was thought China would respect intellectual property more as it climbed the technology ladder. Since then, sorghum exports have fallen back from their peak. Here's a catchup on the latest moves that are turning up the heat. But it's still at a stage where it's inconvenient rather than a full blown economic crisis," he said.

Trade in services, in which the United States is stronger, is tiny compared with the trade in goods, and offsets only about a tenth of the deficit in goods. Brad Setser, a Council on Foreign Relations economist, calculated that imports of manufactured goods from the United States are becoming steadily less important to the Chinese economy. The latest move, announced on Tuesday by China’s top economic planning agency, follows through on a long-promised effort by Beijing to further open its markets to foreign companies.

President Ranked From Best to Worst Xi may have been relieved too. Probably not. Boeing, for example, is very vulnerable. The S&P 500 index rose 0.1 percent to 2,708.64. Last Tuesday, Chinese President Xi Jinping pledged to open markets, protect intellectual property and increase imports. WALL STREET: Technology and consumer-services companies, retailers and health care stocks contributed to a broad rally.

US-China trade: 24 hours that escalated the fight

Last week, there were signs of that US-China trade tension may be easing. Not any more.

But the crop remains important on the western edge of the U.S. corn belt. China is the largest buyer of American sorghum, and its imports were worth nearly $1 billion last year. The flare up comes after recent signs that tensions may be easing. A production line making carbon fiber in Lianyungang, China. China’s surplus on goods with the United States last year totaled $375 billion, according to Washington, or $276 billion, according to Beijing.

China also said on Tuesday that it would eliminate foreign ownership restrictions this year on its shipbuilding industry. We’re interested in your feedback on this page. The conventional wisdom about a trade war between the world’s two largest economies is that both sides would lose, bigly. But if the U.S. chooses that route anyway—and Trump has long expressed an affinity for tariffs—the conventional wisdom is that China will retaliate.

The Dow Jones industrial average 0.2 percent to 24,748.07. The following day, China's central bank governor pledged to open the country's financial sector to foreign investment. Strong company earnings and outlooks, as well as some encouraging economic data, helped put investors in a buying mood. It added 16 cents the previous session to close at $71.58 per barrel. It’s easier to be confident about the next decade.

The top five sorghum-producing states are Kansas, Texas, Colorado, Oklahoma and South Dakota. ZTE banned The US cracked down on ZTE, one of China's biggest tech companies, on Monday. A week ago, Chinese President Xi Jinping said his government would cut tariffs on vehicle imports this year, a long-promised move that addresses one of Trump's major gripes. SHANGHAI — China’s economy grew at a healthy pace in the first three months of this year, propelled by strong household spending and heavy government investment in infrastructure.

China's Economy Grows, and Its Trade Gap With the US Widens

Chinese-made goods become more valuable to Beijing as an increasing number of parts and components it once bought from the United States are made at home.

It’s widely assumed that Beijing has significant weapons with which to do so—weapons that could seriously damage the U.S. and global economy. But Beijing’s ability to inflict pain on the overall U.S. economy is limited, some analysts believe. ENERGY: Oil futures extended their rally. But China insisted this had nothing to do with ongoing trade frictions with the U.S. The Standard & Poor's Index rose 1.1 percent to 2,706.39.

Sino-American economic cooperation jump-started when Deng Xiaoping resumed reform in 1992, climaxed with China’s entry into the World Trade Organization, and survived the 2008 global crisis. Quick, sharp changes in the relationship, as threatened by the Trump administration , would have costs for the United States. Earlier this month, China threatened tariffs against soybeans, pork and other U.S. agricultural products.

Our Terms of Service and Privacy Policy have changed. The National Bureau of Statistics in Beijing announced Tuesday morning that the economy had expanded 6.8 percent in the first quarter compared with the same quarter last year. Xing Zhihong, the spokesman for China’s statistics bureau, said on Tuesday that China did not try to have a trade surplus with the rest of the world, and noted that it was narrowing overall.

An error has occurred. Accessibility concerns? In a trade war with China, the U.S., if it’s smart about it, could “win,” or least make sure that China loses more. But Xi knows better. U.S. soybean producers, for example, could suffer, but we’re not talking about another Great Depression. Benchmark U.S. crude rose 26 cents to $68.73 a barrel in electronic trading on the New York Mercantile Exchange.

The Dow Jones industrial average gained 0.9 percent to 24,786.63, nudging the blue chip average into positive territory for the year. The euro rose to $1.2381 from $1.2373. It is now starting to wind down. Ideally, Washington would articulate a clear strategy and implement it over time, allowing both American companies and trade partners to adjust. He said he sees the deposit move as a Chinese response to U.S. investigations into Chinese washing machines and photovoltaic panels.