Latest news with #US-Sino
Asia Times
15-05-2025
- Business
- Asia Times
China has 90 days to make an offer Trump can't refuse
Washington and Beijing have finally agreed to a pause in their escalating trade war. US and Chinese officials announced in Geneva this week that US tariffs on Chinese goods would fall to 30%, while Chinese tariffs on US products would drop back to 10%. But the real battle to determine the fate of future US-Sino relations will be in negotiations that take place in the next 90 days. As both sides jostle to protect their respective national interests, a win is possible for China. But that probably hinges on whether Donald Trump sees what's on offer as a win for him as well. The 90-day deal to de-escalate tariffs, which begins on May 14, includes significant concessions and shows a willingness from both sides to negotiate. In early April, US tariffs on Chinese products had soared to 145%, while Beijing imposed a 125% tariff on US imports. US supermarkets had begun to warn of imminent stock shortages. Donald Trump was quick to claim a significant win from Monday's deal, but so did China. Was this really a win for either side? So far, the only progress is the rollback of tariffs to levels before the trade war intensified in April 2025. But for China, the latest tariff reduction has provided much-needed, if short-term, economic relief, even if no one knows what will happen after 90 days. The Chinese stock market rallied immediately after the announcement. China is attempting to repair its ailing economy, fueled by a real estate crisis that began in 2021. So, Beijing needs more triumphs of this sort, as it realises that fiscal stimulus may be ineffective in the face of overwhelming tariffs. So, what measures should Beijing take to ensure that US tariffs remain low, if not lower? Before the trade war between the US and China began in July 2018, tariffs imposed by Washington on Beijing and vice versa were relatively low. In January 2018, US tariffs on Chinese exports stood at 3.1%, while Chinese tariffs on US exports were at 8%. While the current 10% Chinese tariffs on US goods aren't far from the pre-trade war level, the same cannot be said of US tariffs on Chinese goods, which stand at 30%. For Beijing, a big win would be a return of the pre-trade war tariffs or the absence of tariffs entirely. But either outcome is highly unlikely. A major obstacle is Trump's need for a political win. In early April this year, the US president has harshly criticized foreign nations for having 'looted, pillaged, raped, and plundered' the US. To address this problem, the US has imposed a minimum tariff of 10% on all nations sending exports to the US. And if Washington were to reduce tariffs on Chinese products to under 10%, then Trump would be expected to do the same with the rest of the world. Even this 90-day deal with China could be seen as capitulation by Trump, who was already under pressure from the US stock market and business leaders to roll back the high tariffs on Chinese goods. But revising baseline tariffs downwards to below 10% for the rest of the world would be seen as an even greater cop out. This could eat into Trump's political capital and harm the Republican Party's chances at midterm elections scheduled for 2026. All of which seems unlikely. Details of the US and China trade war pause start to be revealed. What China hopes is that future US tariffs to get back to around 10%. This represents a massive improvement from the previous 145% imposed by the White House in April this year. But for Washington to save face and claim a believable victory of its own to reduce tariffs, Beijing needs to offer something in return. One significant issue affecting US-Sino relations is the drug fentanyl. According to the US Drug Enforcement Agency (DEA), fentanyl, which is responsible for tens of thousands of US deaths each year, comes primarily from China and Mexico. Washington expects Beijing to do more to stem the flow of drugs and chemicals used to make drugs from flowing into the US. To push China to take action on this, the US imposed a 30% tariff on China instead of the baseline 10% it has put on all other nations. Beijing sees things differently and claims that Washington is engaging in a 'smear campaign' and aims to 'shift blame' on China for not doing enough when the country has some of the strictest drug laws in the world. Trump sees the fentanyl problem as a national security issue, and says China needs to provide sufficient concessions in stemming the outflow of the drug so that the White House can justify the lowering of tariffs below the existing 30%. But China can do more to secure lower tariffs. As part of the present trade deal, China has agreed to lift its export ban on critical minerals to the US. This is crucial for the US as these items are essential in manufacturing advanced weaponry. If Beijing can guarantee the flow of critical minerals to the US and assure its support for US agriculture, an important political support base for Trump, then it is likely that a Trump administration would lower, and more importantly, maintain these tariffs in the foreseeable future. China probably will want to hedge its bets. It needs to engage with the US and lower US tariffs as much as possible, but will want to look at other options, rather than relying on an unpredictable Trump. It will look to increase its trade with other significant regional players such as the Association of Southeast Asian Nations (ASEAN), an economic bloc that promotes economic growth among its member nations. Ultimately, China needs policy continuity from Washington. Without it, any plans that it has for reviving its sluggish economy won't work. But like any good trader, Trump will likely find it difficult to pass up a good deal, especially when the US has to deal with its own economic problems. So if Beijing can find a way to make a deal that works and brings a symbolic win for both sides, it is likely to get Trump's attention. Chee Meng Tan is assistant professor of business economics, University of Nottingham This article is republished from The Conversation under a Creative Commons license. Read the original article.
Yahoo
29-04-2025
- Business
- Yahoo
Gold Falls On Stronger Dollar as US Offers Auto Tariff Reprieve
(Bloomberg) -- Gold declined on expectations President Donald Trump will ease the impact of his auto tariffs, weighing on haven demand amid hopes of a further dialing down of trade tensions. New York City Transit System Chips Away at Subway Fare Evasion NYC's Congestion Toll Raised $159 Million in the First Quarter Newsom Says California Is Now the World's Fourth-Biggest Economy The Last Thing US Transit Agencies Should Do Now At Bryn Mawr, a Monumental Plaza Traces the Steps of Black History Bullion fell as much as 1.2% to $3,305.23 an ounce, following a 0.7% gain in the previous session, after a White House official said some levies on foreign parts for cars and trucks would be lifted and imported automobiles would be given a reprieve from separate tariffs on aluminum and steel. A gauge of the dollar strengthened, making bullion more expensive for most buyers as it's priced in the greenback. Traders continue to weigh the outlook for the global economy amid heightened uncertainty over the impact of the fast-developing US-led trade war, which has stoked haven demand for gold and led to its record-breaking run in recent months. The consequences of Trump's tariff agenda should become even clearer this week, with a raft of data due on American jobs, inflation and economic growth. 'Although negotiations may progress slowly, the White House's renewed willingness to engage has shifted market sentiment from panic selling to cautious optimism, putting some downward pressure on gold,' Pepperstone Group Ltd. research strategist Dilin Wu said in a note. Still, if there are signs of labor market deterioration in US reports due later this week, 'expectations for a June Fed rate cut would likely firm, potentially reigniting another leg higher in gold,' Wu said. There's also little prospect of a reprieve in US-Sino relations, after China's top diplomat warned countries against caving in to Trump's tariff threats. Meanwhile, Treasury Secretary Scott Bessent told CNBC that the US has put China to the side for now and indicated it's up to Beijing to take the first step in de-escalating the fight. The Chinese Foreign Ministry again denied it was in talks with Washington to find ways to whittle down the wall of tariffs separating the two largest economies. Gold has climbed more than 25% this year as the trade war, expectations for a global slowdown, and tensions between the Trump administration and the Federal Reserve drove haven demand. The gains have also been supported by inflows into bullion-backed exchange-traded funds, central-bank buying and signs of strong speculative demand in China, even as physical consumption in the world's biggest buyer falls. Gold for immediate delivery fell 0.9% to $3,313.06 an ounce as at 1:53 p.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.2%. Silver and palladium declined, while platinum was little changed. As More Women Lift Weights, Gyms Might Never Be the Same Why US Men Think College Isn't Worth It Anymore Healthy Sodas Like Poppi, Olipop Are Drawing PepsiCo's and Coca-Cola's Attention Eight Charts Show Men Are Falling Behind, From Classrooms to Careers The Mastermind of the Yellowstone Universe Isn't Done Yet ©2025 Bloomberg L.P. Sign in to access your portfolio
Business Times
27-04-2025
- Business
- Business Times
China says CK Hutchison's ports deal must not try to avoid antitrust review
[BEIJING] China's top market regulator said on Sunday (Apr 27) that it was paying close attention to CK Hutchison's planned sale of most of its ports operations to a BlackRock-led consortium and parties to the deal should not try to avoid an antitrust review. The sale by the Hong Kong conglomerate, which contains two ports along the strategically important Panama Canal, has become highly politicised amid intensifying US-Sino trade tensions. 'No concentration of undertakings shall be implemented without approval, otherwise legal liability will be incurred,' the State Administration for Market Regulation said in a statement. The statement was in response to a Wall Street Journal article on Apr 16. The MSC shipping empire, which is part of the BlackRock consortium, has held discussions on moving ahead with the bulk of the deal while disputes over the two Panama ports are resolved, the report said, citing people familiar with the matter. The deal has two components with different ownership structures – one for the Panama ports and one for everything else, the report added. US President Donald Trump has repeatedly said that he wants to take back the Panama Canal and has hailed the deal as a 'reclaiming' of the waterway. Chinese state media, however, have criticised the planned sale as a betrayal of China's interests. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Trump said on Saturday that American military and commercial ships should be allowed to travel through the Panama Canal and Suez Canal free of charge. Tycoon Li Ka-shing's CK Hutchison announced last month it would sell its 80 per cent holding in the ports business which encompasses 43 ports in 23 countries. The business has an enterprise value, which includes debt, of US$22.8 billion. Singapore's PSA International, which owns the other 20 per cent, is also exploring a sale of its holding, sources have said. Overall, the Hong Kong conglomerate has interests in 53 ports. Ports in Hong Kong and mainland China were not included in the deal. REUTERS
Business Recorder
23-04-2025
- Business
- Business Recorder
Yuan holds ground on trade optimism, regulator vows stability
HONG KONG: China's yuan held steady against the US dollar on Wednesday, supported by regulatory pledges to maintain market stability and fresh optimism over US-China trade relations. Sentiment improved after US Treasury Secretary Scott Bessent suggested a possible de-escalation of the US-Sino trade war, while noting negotiations with Beijing have not yet started and would be a 'slog'. In addition, the State Administration of Foreign Exchange said on Tuesday that it would prevent excessive exchange rate fluctuations and guard against unusual cross-border money flows. Regulators will also strengthen oversight and enrich their policy toolkits while correcting any pro-cyclical market behaviour, it added, apparently referencing options to prevent volatile currency moves. The yuan was 0.09% higher at 7.2995 to the dollar by 0420 GMT, 65 pips firmer than the previous late session close. Its offshore counterpart traded at 7.3077 yuan per dollar , up less than 0.1% in Asian trade.
Business Recorder
23-04-2025
- Business
- Business Recorder
China's yuan holds ground on trade optimism, regulator vows stability
HONG KONG: China's yuan held steady against the US dollar on Wednesday, supported by regulatory pledges to maintain market stability and fresh optimism over US-China trade relations. Sentiment improved after US Treasury Secretary Scott Bessent suggested a possible de-escalation of the US-Sino trade war, while noting negotiations with Beijing have not yet started and would be a 'slog'. In addition, the State Administration of Foreign Exchange said on Tuesday that it would prevent excessive exchange rate fluctuations and guard against unusual cross-border money flows. Regulators will also strengthen oversight and enrich their policy toolkits while correcting any pro-cyclical market behaviour, it added, apparently referencing options to prevent volatile currency moves. The yuan was 0.09% higher at 7.2995 to the dollar by 0420 GMT, 65 pips firmer than the previous late session close. Its offshore counterpart traded at 7.3077 yuan per dollar , up less than 0.1% in Asian trade. China's central bank has been pushing back against bearish yuan sentiment, while dollar weakness has helped ease depreciation pressure on the yuan recently, analyst at CICC said in a note. 'With the yuan relatively stable, room for monetary easing has opened up, including potential interest rate cuts.' Prior to the market opening, the People's Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.2116 per dollar, which was 1,350 pips firmer than a Reuters' estimate. China's yuan pulls back, trade row keeps markets wary The central bank has slightly eased its control on the currency, allowing official guidance to weaken past the key threshold of 7.2. However, it still came in stronger than market forecasts, which traders interpreted as an attempt to keep the yuan steady while allowing some flexibility to counteract tariff shocks. Based on Wednesday's official guidance, the yuan is allowed to drop as far as 7.3558. The dollar's six-currency index steadied at 99.17 after jumping 1.5% in the previous session, after President Donald Trump said he had no plans to fire Federal Reserve Chair Jerome Powell in a relief to investors.
