HOPES FOR TRADE: Speaking at a business conference, Xi made no direct mention of the trade dispute with the USA, but promised changes in areas that the US has identified as priorities.
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What’s the connection with Trump’s tariffs? Taxes will become Reciprocal & a deal will be made on Intellectual Property.
“Stronger IPR protection is the requirement of foreign enterprises, and even more so of Chinese enterprises”, Xi said. “China has always been a builder of world peace, a contributor to global development, and a defender of the worldwide order”.
As its economy transitions away from labor-intensive industries – like clothing and footwear manufacture – China views its shift into higher-tech manufacturing as a crucial part of its development trajectory.
“I need China. More than anybody else at this point, I need China”, Duterte said in a speech before leaving for Hainan on April 9.
Silvecrest Asset Management chief strategist Patrick Chovanec, tweeted “My guess is that Xi’s “conciliatory” tone is more about posing as the reasonable one on trade, and trying to divide potential allies from Trump, than caving to Trump”.
Chinese officials and state media, in the lead-up to Tuesday, breathlessly billed his speech as a major announcement about the country’s reforms. Investors have been on edge recently on fears that the US and China could engage each other in a trade war.
China also forces American companies to share their technology as the price of access to the Chinese market.
Sales of beef to China this year represent less than 1 percent of US beef exports. Pat Roberts, R-Kan., chairman of the Senate Agriculture Committee, said at a meeting of agricultural reporters in Washington.
Last year, about 3,000 tonnes of USA beef valued at $31 million was shipped to China, making it the No. 18 market.
The tariffs are an attack on those emerging industries.
“We should promote trade and investment liberalization and facilitation, support the multilateral trading system”, the Chinese President said.
The new White House economic adviser, Larry Kudlow, said Sunday that a “coalition of the willing” – including Canada, much of Europe and Australia – was being formed to pressure China and that the USA would demand that the World Trade Organization, an arbiter of trade disputes, be stricter on Beijing. -China tariffs will escalate into a full-scale trade war that would threaten global growth.
ENERGY: Benchmark U.S. crude rose $1.47, or 2.3 percent, to $64.89 a barrel in NY. But business groups from outside China argue that joint venture and licensing rules make coerced transfers of technology unavoidable.
While China politics expert Yu cites domestic support for Trump’s trade approach to China, Xi can likely command even stronger backing at home for a muscular approach toward what Beijing portrays as a conflict resulting from US unilateralism and hegemony.
“If China doesn’t import goods from the United States it’s going to import them from other countries.in that sense the disputes between China and the United States could bring opportunities”, said Jia.
The full list of Chinese imports that Trump is targeting thus far. “It doesn’t feel normal because we’re not used to it”, said David Spika, president of GuideStone Capital Management.
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Investors took the same message from a speech Xi delivered Tuesday in which he promised the sort of market changes the Trump administration has demanded, as stocks rallied around the world on the news.
