Latest news with #tradeconflict
CNN
2 days ago
- Business
- CNN
Trump administration took action against China due to frustration on trade talks, officials say
The flurry of punitive measures taken against China by the Trump administration over the last few days was prompted by a belief among US officials that China has failed to live up to commitments it made in trade talks earlier this month, three administration officials told CNN. This week the administration made moves to revoke visas for Chinese students and suspend the sale of some critical technology to Chinese companies. The officials said they are frustrated that China failed to follow through on the commitments that were meant to deescalate the trade conflict between the two countries, as they seek an overall deal by the middle of August. The dispute underscores the highly fraught relationship between the world's two largest economies. Even as the two sides emerged from the talks in Switzerland having agreed to reduce the withering tariffs introduced by President Donald Trump, the gulf appears to be widening on supply chains that each nation believes are critical to national security. After the talks in Geneva this month — the first substantive meeting on trade since Trump imposed the tariffs — US officials had expected China to ease export restrictions of rare earth minerals, which are an essential part of everything from iPhones and electric vehicles to big-ticket weapons like F-35 fighter jets and missile systems. But the restrictions haven't been lifted, causing intense displeasure inside the Trump administration and prompting the recent series of costs imposed on China, the three administration officials said. The decisions in Washington to limit critical technology sales to China and restrict the number of Chinese students studying in the US reveals just how central the trade war is to the administration's overall foreign policy towards China. It is a 'unified administration strategy,' said one senior administration official in describing the connective tissue. The actions taken in the last week will have a significant impact on Chinese tech companies and students. The Financial Times reported on Wednesday that Trump had effectively cut off some American companies from selling software used to design semiconductors to China. A Siemens spokesperson later told CNN that the US government on Friday informed the industry about new export controls on chip designing software to China and Chinese military end users globally. Just days later Secretary of State Marco Rubio said that the Trump administration will 'aggressively revoke visas for Chinese students,' including those with connections to the Chinese Communist Party or studying in critical fields. 'On day one, the President signed an Executive Order directing the Secretary of State to enhance federal screening and vetting of aliens coming to the United States, including visa holders. The Secretary made this decision in the Administration's ongoing effort to protect our homeland from espionage and other hostile actions,' said White House press secretary Karoline Leavitt. Treasury Secretary Scott Bessent, who Trump tapped to lead the talks and run point on the bilateral relationship, has highlighted the importance of the process the Geneva talks put into place for negotiations to take place in the months ahead. But he has stressed the value of the 'mechanism' established between the US and Chinese sides to prevent future escalations that would derail future talks or any eventual outcome. Bessent, who led the Geneva talks with US Trade Representative Jamieson Greer, has maintained a focus on a functioning relationship and has said a second in-person meeting between the two sides is likely in the future. But Bessent has also calibrated his public comments to make clear the US has no plans to slow or stop a strategic effort to decouple from China on supply chains deemed critical to US national security. 'I would say that they are a bit stalled,' Bessent said of the China talks Thursday on Fox News. 'I believe that we will be having more talks with them in the next few weeks. And I believe we may, at some point, have a call between the president and party chair Xi (Jinping).' 'I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other,' Bessent said. Growing concern within the administration in the leadup to the talks over China's moves to cut off access to rare earth minerals sparked a wide-ranging effort behind the scenes to find potential workarounds, officials said. That effort, which included officials from several agencies and the West Wing, wasn't halted after the trade talks and remains a focus. But there was a view that the immediate pressure would ease as a result of the agreement reflected in the joint statement. When that did not happen, the US began to think about ways to impose costs on China. US officials said they were not concerned about the one-two hit derailing the future of the US-China trade talks. Instead, officials are looking to make clear that not effectively engaging in the ongoing trade talks comes with consequences for the country. 'It is clearly an escalation. But if you look at what Trump does when he thinks he is getting close to securing a deal, and it's not there yet, he tries to elevate the rhetoric. They think that elevated rhetoric and action will move a deal faster,' said one person close to the White House. There were signs that Beijing was initially caught off guard by the visa announcement. For much of Thursday, China's state-controlled media remained largely silent on the news that will significantly impact the fate of hundreds of thousands of Chinese students. Then China's foreign ministry spokesperson came out calling the move 'politically motivated and discriminatory.' Any path towards steadying the relationship across the board remains uncertain. 'The Geneva agreement was a major first step towards securing a final, comprehensive trade deal with China,' White House spokesman Kush Desai said in a statement. 'Discussions continue, and the Administration is monitoring compliance with the agreement.' It isn't clear when the next round of trade talks between the US and China will take place. And despite saying for weeks he would talk soon with President Xi Jinping, Trump and the Chinese leader have not yet spoken amid the trade conflict.
CNN
2 days ago
- Business
- CNN
Trump administration took action against China due to frustration on trade talks, officials say
The flurry of punitive measures taken against China by the Trump administration over the last few days was prompted by a belief among US officials that China has failed to live up to commitments it made in trade talks earlier this month, three administration officials told CNN. This week the administration made moves to revoke visas for Chinese students and suspend the sale of some critical technology to Chinese companies. The officials said they are frustrated that China failed to follow through on the commitments that were meant to deescalate the trade conflict between the two countries, as they seek an overall deal by the middle of August. The dispute underscores the highly fraught relationship between the world's two largest economies. Even as the two sides emerged from the talks in Switzerland having agreed to reduce the withering tariffs introduced by President Donald Trump, the gulf appears to be widening on supply chains that each nation believes are critical to national security. After the talks in Geneva this month — the first substantive meeting on trade since Trump imposed the tariffs — US officials had expected China to ease export restrictions of rare earth minerals, which are an essential part of everything from iPhones and electric vehicles to big-ticket weapons like F-35 fighter jets and missile systems. But the restrictions haven't been lifted, causing intense displeasure inside the Trump administration and prompting the recent series of costs imposed on China, the three administration officials said. The decisions in Washington to limit critical technology sales to China and restrict the number of Chinese students studying in the US reveals just how central the trade war is to the administration's overall foreign policy towards China. It is a 'unified administration strategy,' said one senior administration official in describing the connective tissue. The actions taken in the last week will have a significant impact on Chinese tech companies and students. The Financial Times reported on Wednesday that Trump had effectively cut off some American companies from selling software used to design semiconductors to China. A Siemens spokesperson later told CNN that the US government on Friday informed the industry about new export controls on chip designing software to China and Chinese military end users globally. Just days later Secretary of State Marco Rubio said that the Trump administration will 'aggressively revoke visas for Chinese students,' including those with connections to the Chinese Communist Party or studying in critical fields. 'On day one, the President signed an Executive Order directing the Secretary of State to enhance federal screening and vetting of aliens coming to the United States, including visa holders. The Secretary made this decision in the Administration's ongoing effort to protect our homeland from espionage and other hostile actions,' said White House press secretary Karoline Leavitt. Treasury Secretary Scott Bessent, who Trump tapped to lead the talks and run point on the bilateral relationship, has highlighted the importance of the process the Geneva talks put into place for negotiations to take place in the months ahead. But he has stressed the value of the 'mechanism' established between the US and Chinese sides to prevent future escalations that would derail future talks or any eventual outcome. Bessent, who led the Geneva talks with US Trade Representative Jamieson Greer, has maintained a focus on a functioning relationship and has said a second in-person meeting between the two sides is likely in the future. But Bessent has also calibrated his public comments to make clear the US has no plans to slow or stop a strategic effort to decouple from China on supply chains deemed critical to US national security. 'I would say that they are a bit stalled,' Bessent said of the China talks Thursday on Fox News. 'I believe that we will be having more talks with them in the next few weeks. And I believe we may, at some point, have a call between the president and party chair Xi (Jinping).' 'I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other,' Bessent said. Growing concern within the administration in the leadup to the talks over China's moves to cut off access to rare earth minerals sparked a wide-ranging effort behind the scenes to find potential workarounds, officials said. That effort, which included officials from several agencies and the West Wing, wasn't halted after the trade talks and remains a focus. But there was a view that the immediate pressure would ease as a result of the agreement reflected in the joint statement. When that did not happen, the US began to think about ways to impose costs on China. US officials said they were not concerned about the one-two hit derailing the future of the US-China trade talks. Instead, officials are looking to make clear that not effectively engaging in the ongoing trade talks comes with consequences for the country. 'It is clearly an escalation. But if you look at what Trump does when he thinks he is getting close to securing a deal, and it's not there yet, he tries to elevate the rhetoric. They think that elevated rhetoric and action will move a deal faster,' said one person close to the White House. There were signs that Beijing was initially caught off guard by the visa announcement. For much of Thursday, China's state-controlled media remained largely silent on the news that will significantly impact the fate of hundreds of thousands of Chinese students. Then China's foreign ministry spokesperson came out calling the move 'politically motivated and discriminatory.' Any path towards steadying the relationship across the board remains uncertain. 'The Geneva agreement was a major first step towards securing a final, comprehensive trade deal with China,' White House spokesman Kush Desai said in a statement. 'Discussions continue, and the Administration is monitoring compliance with the agreement.' It isn't clear when the next round of trade talks between the US and China will take place. And despite saying for weeks he would talk soon with President Xi Jinping, Trump and the Chinese leader have not yet spoken amid the trade conflict.
New York Times
3 days ago
- Business
- New York Times
U.S. Pauses Exports of Jet Engine Technology and Chip Software to China
The Trump administration has suspended some sales to China of critical U.S. technologies, including those related to jet engines, semiconductors and certain chemicals. The move is a response to China's recent restrictions on exports of critical minerals to the United States, a decision by Beijing that has threatened to cripple U.S. company supply chains, according to two people familiar with the matter. The new limits are pushing the world's largest economies a step closer toward supply chain warfare, as Washington and Beijing try to flex their power over essential economic components in an attempt to gain the upper hand in an intensifying trade conflict. The standoff could have significant implications for companies that depend on foreign technologies, including makers of airplanes, robots cars and semiconductors. In April, China suspended exports of a range of critical minerals and magnets, which are essential for automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The Chinese government said it had halted the shipments while drafting a new regulatory system. Beijing's moves were in response to Mr. Trump's decision to sharply increase tariffs on China in early April, to a minimum of 145 percent. One person familiar with the matter, who declined to be named to discuss private conversations, said the Commerce Department had suspended some licenses that allowed American companies to sell products and technology to COMAC, a Chinese state-owned aerospace manufacturer, in order to develop its C919 aircraft. The Commerce Department did not immediately respond for comment. The C919, a plane comparable in size to the Boeing 737 or the Airbus A320, carried paying passengers for the first time in 2023. Many of the plane's parts, including its engines and components necessary to power and control the aircraft, come from U.S. and European suppliers. China is a long way away from producing enough planes to meet its needs and, analysts say, will continue to be dependent on Boeing and Airbus for planes, and companies like GE Aerospace for jet engines, for many years to come. China also lags behind the United States in certain areas of semiconductor technology. A representative for GE did not immediately respond to a request for comment. In recent days, the Chinese have restarted some shipments of rare earth magnets, but they have been limited, one of the people said. Companies remain concerned about their access to critical Chinese supplies. The Financial Times earlier reported that the Trump administration was restricting exports of chip design software to China.
Malay Mail
5 days ago
- Business
- Malay Mail
Geopolitical tensions lead to increasing risks for shipping sector globally
Allianz Safety and Shipping Review 2025: Trade conflict between the US and China and growing shadow fleet add to substantial challenges for the shipping industry. Despite geopolitical headwinds: only 27 large ships lost worldwide in 2024, down by more than 20%, the industry's lowest-ever total. Progress made on traditional risks such as fires, collisions, and groundings, which are the main causes of losses, but potential for large claims remains a concern. SINGAPORE - Media OutReach Newswire - 27 May 2025 - The fast-changing geopolitical landscape is creating new risks and challenges for a shipping industry already juggling the energy transition and the legacy of the Covid-19 pandemic, according to Allianz Commercial's Safety and Shipping Review . The industry faces an increasingly volatile and complex operating environment, marked by attacks against shipping, vessel detentions, sanctions, as well as the fall-out from incidents involving damage to critical sub-sea cables. Furthermore, the ripple effect of increasing protectionism and tariffs threatens to remake supply chains and shake up established trade 90% of international trade is transported across oceans, those developments are concerning, especially as the industry continues to see the potential for large claims from traditional risks such as fires, collisions and groundings, which are still the main drivers for total losses of large vessels. However, there is also good news. The shipping industry has made significant improvements when it comes to maritime safety in recent years. During the 1990s the global fleet was losing 200+ vessels a year. This total had halved 10 years ago and is now down to a record low of 27 as of the end of 2024 (from 35 in 2023).China has been the biggest target of the protectionist measures of the US administration with tariffs reaching 145%, before both countries agreed to reduce them for 90 days. Developments have significantly impacted global maritime trade with approximately 18% of it subject to tariffs as of mid-April 2025, compared with 4% in early March , and dramatic declines in shipments reported in the immediate aftermath of the "Liberation Day" announcements. While the future of US trade-focused policies remains uncertain, another phenomenon is posing an increasing challenge for the maritime and insurance industries: the shadow fleet. Since the start of the war in Ukraine, the size of the shadow fleet has grown significantly. Today, around 17% of the world tanker fleet is thought to belong to the shadow fleet: estimates indicate there are close to 600 tankers trading Russian oil alone . Shadow fleet vessels have been involved in tens of incidents around the world including fires, collisions and oil ongoing geopolitical volatility in the Middle East, many ship operators have rerouted vessels around the Cape of Good Hope, adding time and cost to transits between Asia and Europe. For example, this rerouting adds around $1mn in costs and at least 10 days to a typical transit between China and Europe. According to estimates, cargo volumes in the strait had fallen by two-thirds by September 2024, with rerouting costing the global economy some US$200bn that year. The quality and safety of vessels may also be impacted as a result of this vessel fires are still a major concern for hull and cargo insurers. There were seven total losses reported across all vessel types during 2024, the same number as a year earlier. The number of incidents overall was up year-on-year to a decade high of 250, again across all vessel types. Around 30% of these fire incidents occurred on either container, cargo or roll-on roll-off vessels (ro-ros) (69). More than 100 total losses of vessels have been caused by fires in the past decade. Efforts to mitigate these risks are underway, with regulatory changes and technological advancements aimed at addressing mis-declared cargo, a primary contributor to such fires. This is critical as the electrification of the global economy poses further challenges given the growing number of lithium-ion batteries and battery energy storage systems being transported.," explainsHashtag: #shipping #allianzcommercial The issuer is solely responsible for the content of this announcement. Allianz Commercial Allianz Commercial is the center of expertise and global line of Allianz Group for insuring mid-sized businesses, large enterprises and specialist risks. Among our customers are the world's largest consumer brands, financial institutions and industry players, the global aviation and shipping industry as well as family-owned and medium enterprises which are the backbone of the economy. We also cover unique risks such as offshore wind parks, infrastructure projects or film productions. Powered by the employees, financial strength, and network of the world's #1 insurance brand, we work together to help our customers prepare for what's ahead: They trust us in providing a wide range of traditional and alternative risk transfer solutions, outstanding risk consulting and Multinational services as well as seamless claims handling. Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either through our own teams or the Allianz Group network and partners. In 2024, the integrated business of Allianz Commercial generated around €18 billion in gross premium globally.
Bloomberg
5 days ago
- Business
- Bloomberg
Germany's Merz Says US Tech Perks Could Be Target in Trade War
The European Union could retaliate against US technology companies if the trade conflict with Donald Trump's administration escalates, German Chancellor Friedrich Merz said. While the leader of Europe's largest economy aims to reduce tariffs and defuse tensions with the White House, he said that the bloc would need to protect its interests and pointed to the US surplus in services trade with the EU.
