BEIJING (NYTIMES) - China has too many factories making too many goods. Thanks to its punishing trade war with the United States, its biggest overseas customer isn't buying like before. So China is seeking new customers. They could prove to be a hard sell. China this week formally restarted its efforts to create a free-trade zone across the Asia-Pacific region, with an unlikely goal of striking a deal by November. If successful, the pact could eventually open markets from Australia to India. Beijing is also trying to keep alive long-shot, three-way talks that would lower trade barriers among China, Japan and South Korea. More broadly, it is unilaterally reducing its own tariffs on a broad range of goods from all over the world, even as it puts higher retaliatory tariffs on American-made goods. At stake is the health of the Chinese economy. Last week China reported that its growth slowed to its most sluggish pace in nearly three decades, in part because the trade war with the Trump … [Read more...] about China needs new places to sell its mountain of stuff
Exporting new cars to china
REUTERS: China's campaign to boost loans to small firms was supposed to support the economy during its biggest slowdown in decades, but banks' reluctance to lend has left exporters and manufacturers in its southern industrial belt struggling to pay the bills.Despite prodding from Beijing, several bankers have told Reuters they have little appetite to lend to smaller companies due to the uncertain economic outlook, the U.S.-China trade war and a years-long drive to purge risks from the financial system.That has chilled credit flows to private sector firms, undermining stimulus measures that were designed to cushion the impact of slowing demand.In the southern city of Dongguan in Guangdong province, one of the country's major manufacturing hubs, some small firms are moving production overseas in the face of operational and financing challenges."These days the most discussed topic - something that we always talk about in meetings - is whether we should move to Vietnam. Many of my clients … [Read more...] about China’s credit push to small firms falters in factory heartland
WASHINGTON (NYTIMES) - In a ballroom across from the Capitol, an unlikely group of military hawks, populist crusaders, Chinese Muslim freedom fighters and followers of the Falun Gong has been meeting to warn anyone who will listen that China poses an existential threat to the United States that will not end until the Communist Party is overthrown. If the warnings sound straight out of the Cold War, they are. The Committee on the Present Danger, a long-defunct group that campaigned against the dangers of the Soviet Union in the 1970s and 1980s, has recently been revived with the help of Mr Stephen Bannon, the president's former chief strategist, to warn against the dangers of China. Once dismissed as xenophobes and fringe elements, the group's members are finding their views increasingly embraced in President Donald Trump's Washington, where scepticism and mistrust of China have taken hold. Fear of China has spread across the government, from the White House to Congress to federal … [Read more...] about Red scare grows in Washington, now with China as focus
SYDNEY (BLOOMBERG) - The sell-off that sank US stocks and global commodities spilled into Asia on Tuesday (May 14) after China retaliated with higher tariffs on a range of American goods. Treasuries held gains, as did the yen, amid demand for haven assets. Tokyo stocks opened down about 2 per cent, while shares also fell in Seoul and Sydney. Futures signal weaker equities in Hong Kong and China when markets open there. Japan's Topix index lost 2 per cent as of 9:08am in Tokyo. Australia's S&P/ASX 200 Index dropped 0.3 per cent while South Korea's Kospi index fell fell 0.7 per cent. Hong Kong's Hang Seng Index futures fell 0. per cent earlier. The market was closed for a holiday on Monday. All three major US benchmarks ended more than 2 per cent lower, only the second time this year that's happened, after China targeted some of the biggest US exporters in response to American tariffs. The new penalties also took aim at American farmers, driving down soybean and cotton prices. … [Read more...] about Stock sell-off hits Asia as China strikes back
By David Olive Business Columnist Sun., May 5, 2019 It appears the Trump administration isn’t all that interested in a deal to replace the North American Free Trade Agreement (NAFTA) after all. Last week, White House acting chief of staff Mick Mulvaney was sanguine about the prospect of Congress rejecting NAFTA’s proposed replacement, the United States-Mexico-Canada Agreement (USMCA). “You could stay status quo,” Mulvaney told a California business conference. “Your real Plan Bs are either NAFTA or withdraw from NAFTA.” It might be that U.S. President Donald Trump has reverted to his years-long preference to simply kill NAFTA without replacing it. Trump won’t budge on the reasonable changes that Congressional Democrats seek to make to the USMCA agreement. He also seems determined to keep in place the steel and aluminum tariffs he applied against Canada and Mexico about a year ago. And that alone pretty much … [Read more...] about Time to say goodbye to NAFTA’s replacement?