China bemoans US 'bullying' of Huawei

Andrew Cummings
May 23, 2019

"Some of this $16 billion is going to be used for market access programs to go and build markets elsewhere", U.S. Agriculture Secretary Sonny Perdue said in an interview on Fox Business Network.

"The US unilaterally escalated trade tensions, and has taken many actions which seriously hurts the China-US trade talks", he said.

The EU imposed import duties of 25% on a $2.8 billion range of imports from the United States in retaliation for USA tariffs on European steel and aluminum. Beijing retaliated by charging higher tariffs on $60 billion of American products. A year ago also, we saw both the United States and China impose tariffs on each other's goods even as talks were underway.

Hubert Joly said after the company posted quarterly earnings Thursday that the electronics chain has largely avoided raising prices with a few exceptions, like washing machines.

"For 10 months, China has been paying Tariffs to the United States of America of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods", Trump tweeted May 5.

Joly is just the latest US executive to warn about the potential for rising prices in a trade war.

According to a separate report Thursday from researchers at the Federal Reserve Bank of NY, the U.S.'s 15 percentage-point increase in tariffs will result in an annual cost of $831 per American household, about double the bill on Trump's 2018 tariffs.

It's rare for the International Monetary Fund to disagree with its largest shareholder, and the paper was released just as the rhetoric in Trump's trade war with China reaches a boiling point.

The Dow dropped as much as 407 points, or 1.6%, on Thursday on fears about the tariff battle slowing global growth and dinging corporate profits. The S&P 500 and Nasdaq composite indexes were down by similar degrees.

Energy stocks led the way lower after the price of benchmark USA oil sank more than 5% to drop below $59 per barrel. These companies often have many suppliers and customers overseas.

Global equity markets slid on Wednesday as investors sought safety in bonds, the Japanese yen and Swiss franc amid renewed worries over the standoff after the Hikvision report. "It's an admission of irreconcilable trade and geopolitical differences with China", the analyst said.

The move came as US Treasury Secretary Steve Mnuchin said Wednesday that the US was studying how proposed tariff increases on roughly another $300 billion in Chinese imports would affect consumers and was at least a month away from enacting them.

Lu said, "China is open to the door of dialogue, but sincerity is indispensable to make a consultation meaningful". "Only on a basis of equality and mutual respect can the talks continue". "If China's decided not to play, then we'll sell these great products elsewhere".

"We must be conscious of the long-term and complex nature of various unfavorable factors at home and overseas, and appropriately prepare for various hard situations", Xi said.

China is seeking to support from some of its Asian neighbors and Russian Federation in its escalating tariff fight with the U.S.

Speaking to members of the eight-nation Shanghai Cooperation Organization at a meeting in Kyrgyzstan, Chinese Foreign Minister Wang Yi vowed to match "extreme pressure" from the US with its own measures.

In comments reported Thursday, Wang reiterated China's stance that it would never accept unequal trading arrangements. He said Beijing will match "extreme pressure" from the US with its own measures. Trump later ordered a tariff increase on nearly all remaining imports from China worth about $300 billion.

Similar to the aid package announced previous year, farmers can apply for direct payments for crops impacted by the tariffs and USDA will buy surplus products like milk and meat to distribute to food banks around the country.

FILE - In this Saturday, April 27, 2019, file photo, Chinese President Xi Jinping waves as he leaves after a news conference on the outskirts of Beijing.

China retaliated by announcing plans to raise levies on $60bn of United States imports from 1 June.

Small phone carriers, the main USA customers for Huawei, had anxious that the ban could keep them from performing even routine activities such as ordering replacement parts or patching software. And there is no guarantee they will work.

The Bureau of Industry and Security of the U.S. Department of Commerce earlier put Huawei and its affiliates on an "Entity List", which restricts the sale or transfer of U.S. technologies to the company.

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