Lone Candle
Champion of Truth
“”In China and Iran, both experiencing major outbreaks, early action has been undermined by efforts to halt and control free flow of information,” which has limited the public’s understanding and willingness to “share vital information with officials,” Matthew Kavanagh, an assistant professor of global health at Georgetown University, told Insider last week.”
“words go only so far. The Americans fail to present an economical alternative to Huawei. And the Trump administration is discovering that its belligerent approach toward allies has a cost when it comes to China strategy. Withdrawing from the global Paris climate agreement and the landmark Iran nuclear deal, starting trade conflicts with friendly governments and berating members of NATO make those nations less likely to listen to Washington’s entreaties on China.
A recent policy report on China by the Center for a New American Security said “critical areas of U.S. policy remain inconsistent, uncoordinated, underresourced and — to be blunt — uncompetitive and counterproductive to advancing U.S. values and interests.””
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“Beijing says it will help build up the region under what it calls the Silk Road Economic Belt, which is part of the larger Belt and Road Initiative, a blanket term for global infrastructure projects that, according to Beijing, amount to $1 trillion of investment. The Trump administration says the projects are potential debt traps, but many countries have embraced them.
The economic liberalization of Uzbekistan under Mr. Mirziyoyev, who took power in 2016 after the death of a longtime dictator, has resulted in greater trade with China.
China is Uzbekistan’s largest trading partner, and trade totaled almost $6.3 billion in 2018, a nearly 50 percent increase from 2017, according to Xinhua, the official Chinese news agency. Chinese goods, including Huawei devices, are everywhere in Samarkand, Bukhara, Tashkent and other Uzbek cities.”
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“China’s People’s Liberation Army has gained a new foothold in the region, in the form of a base in Tajikistan’s Pamir Mountains. For at least three years, Chinese troops have quietly kept watch from two dozen buildings and lookout towers near the Tajik-Chinese border and the remote Wakhan Corridor of Afghanistan.”
“Mr. Pompeo also made a demand regarding human rights in China as he met with officials in Tashkent and Nur-Sultan, the capital of Kazakhstan. He raised the issue of China’s internment camps that hold one million or more Muslims and urged the Central Asian nations, which are predominantly Muslim, to speak out against the camps. In Nur-Sultan, he met with Kazakhs who have had family members detained in the camps.
Yet, as in other predominantly Muslim nations, Central Asian leaders have remained silent on this.”
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“Trump administration policies perceived as anti-Muslim undermine trust in Washington. On Jan. 31, Mr. Trump added Kyrgyzstan and five other nations, all with substantial Muslim populations, to a list of countries whose citizens are restricted in traveling to the United States. In an interview in Nur-Sultan, a Kazakh television journalist, Lyazzat Shatayeva, asked Mr. Pompeo, “What do you think that signals to the other countries and other governments in Central Asia on why it happened?”
Mr. Pompeo said Kyrgyzstan must “fix” certain things: “passport issues, visa issues, visa overstays.”
“When the country fixes those things,” he said, “we’ll get them right back in where they can come travel to America.””
“Sino-Swedish relations took a sharp dip in 2015, when Gui Minhai, a Swedish bookseller known for publishing books critical of Chinese leaders, disappeared from his home in Thailand only to later show up in Chinese custody accused of causing a traffic accident.
Stockholm pushed for Gui’s release, but made little progress in securing his return to Sweden.
After years of simmering diplomatic tension over the case, relations worsened again in late 2019, when a Swedish NGO awarded Gui a prize and a Swedish minister attended the award ceremony in Stockholm.
The incident triggered a forceful response from Beijing: The Chinese ambassador to Sweden accused the government of “interfering in China’s internal affairs and judicial sovereignty” and trade missions to Stockholm were canceled.
In an interview with Swedish state television, he also compared Swedish media coverage of the Gui case to a lightweight boxer who keeps challenging a heavyweight to a fight and won’t back off. “What choice do you expect the heavyweight boxer to have?”
His comments sent a chill through Sweden’s political, diplomatic and business communities and were condemned by the foreign minister as “unacceptable.””
“Officials said the massive hack by the members of China’s People’s Liberation Army underscored Beijing’s aggressive pattern of stealing private data to improve its intelligence operations and boost the performance of its domestic companies.”
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“Chinese spies have ramped up espionage-focused hacking in recent years. Their targets — including the Office of Personnel Management and the health insurance titan Anthem — reflect Beijing’s desire to amass dossiers on Americans, especially those with security clearances, in the hope of compromising them.
The Justice Department charged two Chinese hackers with the Anthem breach, and U.S. officials have privately blamed China for the devastating OPM intrusion. Intelligence officials have also linked Beijing to other major cyberattacks, including the Marriott hack that exposed the personal data of roughly 500 million people.
“At the FBI we’ve been saying for years that China will do anything it can to replace the United States as the world’s leading superpower,” Bowdich said. “This indictment is about more than targeting just an American business. It’s about the brazen theft of sensitive personal information of nearly 150 million Americans.””
“the deficit in exports versus imports from China shrank to $345.6 billion, down about 18 percent from a record high level of $419.5 billion in 2018.
But the U.S. trade deficit in manufactured goods with all countries was relatively unchanged in 2019 at close to $1.048 trillion because importers turned to other nations after Trump hit China with tariffs ranging from 10 percent to 25 percent.
Some of the beneficiaries of that shift included Mexico, Vietnam, Taiwan, South Korea, Japan and members of the EU.
The trade deficit with the EU hit a record $177.9 billion in 2019, while the gap with Mexico was a record $101.8 billion”
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“tariffs Trump has imposed on approximately $370 billion worth of Chinese goods have increased costs for U.S. manufacturers”
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“That helps explain both the slowdown in U.S. manufacturing output and slight decline in the manufactured goods trade deficit in 2019”
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“The U.S. usually runs a surplus in agricultural trade. However, that surplus shrank to $23 billion in 2019, from $26.5 billion in 2018, at least partly because of the retaliation that China and other countries on American exports imposed in response to Trump’s tariffs.”
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“One bright spot in the trade report is the sharp drop in the oil and gas trade deficit, which fell to $29 billion in 2019, from $69.5 billion in 2018, because of increased U.S. production and exports.
The oil and gas trade deficit reached as high as $317 billion in 2008, but has fallen steadily over the past decade because of new production techniques.”
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“Trump still is mistaken to believe that the trade deficit is driven primarily by unfair foreign trade practices or bad trade deals, economists point out. Instead, other factors, such as the size of the U.S. budget deficit and the strength of the U.S. economy play a much bigger role in dictating trade flows.
“The irony is the stronger the U.S. economy is compared to our major trading partners, like the European Union and China, the more likely it is the trade deficit will go up because we will have stronger demand,” Griswold said. “The vast majority of economists would say that’s perfectly fine, but it does put this administration in an awkward spot.””
“As the “Phase One” name would indicate, this isn’t really an end to the trade war—in fact, nearly all the tariffs imposed by both the United States and China since hostilities commenced in July 2018 will remain in effect. Still, after 18 months of escalation and retaliation, the signing of a partial trade deal is a welcome sign that cooler heads have prevailed in Washington and Beijing.”
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“the Trump administration does deserve credit for getting stronger protections for intellectual property into the deal, though it remains unclear whether those provisions can be meaningfully enforced. China has also agreed to make a series of changes to its financial services regulations that should allow competition from U.S. banks. That’s potentially more important than it might appear because it reduces the odds that the world’s two largest economies will fully de-couple from one another in the future.”
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“the biggest part of the trade deal—a promise that China will boost its purchases of U.S. exports by $200 million over the next two years—should be viewed with skepticism.”
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“Forcing China to buy more U.S. goods “directly contradicts the negotiating demand that China liberalize its economy and relax centralized control over trade and investment,””
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“trade happens in an incredible diffuse way. It is the result of millions of individual decisions made by consumers and businesses every day. When “America” trades with “China,” what’s really happening is that some individual within America is trading with some individual inside China.
Or at least that’s how it should be. It’s true, of course, that China’s communist government retains considerable control over markets inside the country. But requiring China to buy more American goods isn’t the way to encourage more liberalization.”
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“It’s also not clear whether China buying $200 billion of additional U.S. exports will actually add to overall American economic growth. It’s possible that China could simply buy up exports that would have otherwise gone to other countries. That outcome might reduce America’s trade deficit with China, but it wouldn’t boost U.S. exports overall or help grow American farms or manufacturing—yet another reason why Trump’s fixation on the trade deficit is counterproductive.”
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“as long as Trump’s tariffs remain in place—there are no plans to lift them right now—they will continue to harm American manufacturing and be a drag on exports. Because tariffs raise the cost of manufacturing in the United States by taxing imported component parts, they have the added effect of making finished products more expensive, and thus less competitive on the global market. The Institute of International Finance estimates that the trade war has cost the U.S. about $40 billion in “lost exports.”
China agreeing to buy more farm goods and energy from the United States won’t fix those underlying issues. Unless the tariffs are lifted, Trump’s “Phase One” trade deal could end up helping China’s socialist regime tighten its grip on free markets while providing little to no relief for Americans.”
“This “phase one” deal, which the US and China reached in December, will cool trade tensions between two economic superpowers that have rattled the globe.
But it stops short of the comprehensive trade and reform agreement the Trump administration wanted when it launched its trade war with China in 2018.
Instead, China has agreed to make purchases of about $200 billion worth of US goods over a two-year period, including almost doubling its agricultural purchases to $40 billion.
China also made concessions on intellectual property, currency, and access to financial services, and it’s promised to halt the practice of forcing companies to turn over their technology, according to the United States Trade Representative.
The US, in exchange, will call off and reduce some tariffs, though taxes on $360 billion in Chinese goods will stay in place.
President Donald Trump is selling this deal as an enormous win, but the administration did not get the structural changes to China’s economy that it wanted, including tackling things like Beijing’s huge subsidies to Chinese companies. It’s still not clear if China can or will totally fulfill this obligation to buy US products, and even if it does, the guarantee is only for two years.
Given all that, this partial trade deal might not be able to make up for the pain the trade war caused.”
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“few experts think such a phase two is possible. It’s much more likely the US settled because this is all it could get out of China — and for Trump, it was worth it to have something he could brag about ahead of the 2020 election.”
“US farmers have taken a particularly harsh beating this year from a one-two punch of nasty flooding exacerbated by climate change and a trade war with China.”
“TikTok, the short-form video app that’s been downloaded 1.5 billion times, is one of the most exciting and goofiest places on the internet, and possibly the only truly fun social media network in 2019. It is also based in China — and that’s the part that has some users, and now, politicians, concerned.”
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“US politicians’ concern over TikTok began with an investigation the Guardian published on September 25, which revealed leaked documents that showed TikTok instructing its moderators to censor videos that mentioned topics sensitive to the Communist Party of China: Tiananmen Square, Tibetan independence, and the religious group Falun Gong, for instance. The Guardian’s investigation came after the Washington Post noted that a search for Hong Kong-related topics on TikTok showed virtually zero content about the ongoing and widely publicized pro-democracy protests, which were a major topic on other social media sites at the time. ”