. Earth Science News .
TRADE WARS
US-China trade dilemma: how to hold Beijing's feet to the fire
By Delphine TOUITOU
Washington (AFP) May 5, 2019

Trump to hike tariffs on $200 bn of Chinese goods
Washington (AFP) May 5, 2019 - US President Donald Trump announced Sunday that the United States would raise tariffs on $200 billion of Chinese goods to 25 percent this week, because trade talks are moving "too slowly."

Trump's action came as a major Chinese delegation is expected to arrive Wednesday in Washington for the latest round of talks to end the trade war between the world's two biggest economies -- a round billed as the last one and possibly leading to a deal to end the conflict.

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

"The 10% will go up to 25% on Friday," he said.

The two sides have imposed tariffs on $360 billion in two-way trade since last year. But Trump and Chinese leader Xi Jinping agreed to a truce in December to refrain from further escalation.

As recently as last week, the US had depicted the trade talks as going well.

"The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!" Trump complained Sunday.

Trump says he wants to reduce the huge US trade deficit with China, which in 2018 totalled $378.73 billion if you include trade in services.

Besides a greater opening of the Chinese market to US goods, Trump is pressing for structural changes such as Beijing ending its practice of forcing US companies that operate in China to share their technology.

Trump is also demanding that China halt theft of intellectual property and subsidies to state-owned companies.

To pressure China, Trump has even threatened to slap tariffs on all Chinese products entering the US -- they were worth $539.5 billion last year.

US and Chinese officials say a historic deal ending their ongoing trade war could be imminent, but a key question is how can Washington be sure Beijing will live up to its end of the bargain?

With up to 100 Chinese officials reportedly expected next week in Washington, with the possibility of unveiling a grand agreement after months of tensions, that question is hanging over the talks.

Beijing may make eye-popping offers to buy American energy and agriculture exports as a means of cutting the soaring US-China trade deficit ($378.7 billion in 2018, including services trade), but all eyes will be on whether the agreement has any teeth.

US President Donald Trump increased pressure on the Chinese on Sunday by announcing that the United States will increase tariffs on $200 billion of Chinese goods from 10 percent to 25 percent this week, because the trade talks are moving "too slowly."

US Vice President Mike Pence said Friday the enforcement mechanism would be key to the decision on whether to remove the punishing US tariffs which now cover more than $250 billion in Chinese imports altogether.

"The reason enforcement has become central to this negotiation is the long history of China not living up to the spirit of the commitments it has made in the WTO and in bilateral negotiations with the US and other countries," Edward Alden, a trade expert at the Council on Foreign Relations, told AFP.

Trump has repeatedly accused China of stealing from the United States by buying less from America than it sells.

But Trump also has demanded structural changes to the Chinese economy, including an end to forced transfer of American technology, theft of intellectual property and the massive role the Chinese government plays in markets and industry.

US Trade Representative Robert Lighthizer, who is leading the US delegation along with Treasury Secretary Steven Mnuchin, has insisted Washington will not accept empty promises and will demand verification Beijing is keeping its word.

Reaching trade agreements with China can be especially challenging, given that its regulations are not transparent, Alden said.

"China can change its laws in ways that please the United States, but then use regulatory tools to thwart implementation."

- 'That's the core' -

To ensure strict compliance, US negotiators have proposed monthly, quarterly and semi-annual meetings, with the twice-yearly meetings to involving the most senior officials.

And should American businesses report violations of the agreement, Washington could begin a series of consultations with their Chinese counterparts, and then unilaterally impose new tariffs if no resolution is achieved, according to US media reports.

But China also would have recourse to the same tariff tool in case of a US violation.

"The enforcement mechanism is crucial to the agreement," Doug Barry, spokesman for the US-China Business Council, told AFP.

"Without a credible, time specific, verifiable means to hold parties accountable, we will miss an opportunity to put the trade relationship on a new and better footing."

Alden says the tool under discussion appears novel because bilateral free trade agreements typically resolve disputes through arbitration panels which oversee retaliatory tariffs, similar to the World Trade Organization dispute settlement process.

Businesses on both sides of the Pacific want the talks to wrap up as soon as possible to reduce uncertainty in international commerce at a time when the trade war has weighed on manufacturing sectors in both countries.

Among the top 15 US states exporting to China, many have been hit hard by China's retaliatory tariffs on soy, pork or in the aviation sector, including Alabama, Illinois and Washington State, according to the US-China Business Council.

Companies are calling for the tariffs imposed last year -- which cover more than $360 billion in two-way trade -- to be lifted.

But Washington hopes to retain the ability to resort to tariffs as a cudgel.

"We have to maintain the right to be able to -- whatever happens to the current tariffs -- to raise tariffs in situations where there's violations of the agreement," Lighthizer said in Senate testimony in March.

"That's the core. If we don't do that, then none of it makes any difference."

But, according to Alden, that could create "ongoing uncertainty" for businesses unaware of when either side could seek to impose unilateral tariffs.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
Chinese family say they were scammed over $6.5mn Stanford payment
Hong Kong (AFP) May 3, 2019
The mother of a Chinese student admitted Friday she paid $6.5 million to the man at the heart of a US college admission scandal but said she was duped into believing the sum was a charitable donation. American academia has been rocked by a colossal bribery scandal run by William "Rick" Singer who has pleaded guilty to working with corrupt coaches, university administrators and exam monitors to get the children of wealthy families into prestigious colleges. The $25 million scam, which was reveale ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
Preventing collapse after catastrophe

Ukraine says radiation levels safe after nuclear plant fire

Bad weather hampers aid delivery to Mozambique cyclone survivors

Marines participate in medical readiness training in Puerto Rico

TRADE WARS
Coffee machine helped physicists to make ion traps more efficient

New polymer films conduct heat instead of trapping it

Making glass more clear

Storage beyond the cloud

TRADE WARS
Hydroid to support production of unmanned underwater vehicles

Rapid melting of the world's largest ice shelf linked to solar heat in the ocean

Egypt's rebounding tourism threatens Red Sea corals

Researchers detail marine viruses from pole

TRADE WARS
Ocean's 'seasonal memory' affects Arctic climate change

'Catastrophic' breeding failure at one of world's largest emperor penguin colonies

Antarctica's Effect on Sea Level Rise in Coming Centuries

VT Halter awarded $745.9M for Coast Guard's new Polar Security Cutter

TRADE WARS
US says glyphosate not carcinogenic, poses environmental risks

Ancient Peruvian microbrewery, sour ale helps explain longevity of the Wari empire

Papa roach: Chinese farmer breeds bugs for the table

Papa roach: Chinese farmer breeds bugs for the table

TRADE WARS
38 killed as floods worsen in Mozambique after second cyclone

10,000 evacuated in Canada floods as rescuers search for pets

Nepal marks quake anniversary as rebuilding continues

Mozambique braces for violent floods after Cyclone Kenneth

TRADE WARS
China's vast investment in Africa hits a snag in Congo

Two Chinese hostages freed in Nigeria: police

Idjwi, a haven of peace in DR Congo's conflict-ridden east

Sudan army rulers order protesters to remove blockades

TRADE WARS
Middle Pleistocene human skull reveals variation and continuity in early Asian humans

Human ancestors were 'grounded,' new analysis shows

Isolation helps Brazil indigenous group defend way of life

Early hunter-gatherer ate entire venomous snake, possibly for religious reasons









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.