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Capitalism: Begun the Trade War has
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  • The United States is planning to cancel the visas of thousands of Chinese graduate students believed by President Donald Trump's administration to have links with China's military, two sources with knowledge of the matter said on Thursday.

    The move, first reported by the New York Times, could impact 3,000 to 5,000 Chinese students and could be announced as early as this week,

    Why not to throw out all chinese students and immigants without US greencard?

  • President Trump's administration is set to bar Chinese passenger airlines from flying to the US starting in mid-June as geopolitical tensions continue to flare up between the two nations.

    The move by the Trump administration comes in response to China refusing to allow US airlines to resume passenger service in the country. The Trump administration claimed last month that the Chinese government has made it near impossible for US carriers to operate in the country.

    The new order banning all Chinese passenger airplanes from US flights is expected to take effect on June 16.

    Improvements.

  • Huawei has placed new demands on its suppliers to move production capacity into China. Japan’s Nikkei News reports that Huawei has made a request to foreign semiconductor suppliers. These suppliers have to complete most of its expansion or capacity transfer within China by the end of 2020.

    According to reports, Huawei’s new requirements for its suppliers are already active. The Chinese manufacturer will no longer validate suppliers unless they are willing to increase capacity in China. Alternatively, if they do not want to increase production capacity in China, they can cooperate with production in the country. The sources noted that Huawei’s strategy in the supply chain is to boost localization. In addition, suppliers with capacity in China will receive primary support from Huawei.

    Does Huawei have what it takes to make such demand from suppliers? Let’s look at where the Chinese manufacturer stands in the smartphone market. In China, it is the largest smartphone manufacturer. Globally, it is the second-largest smartphone manufacturer, behind only Samsung. In 2019, the company shipped about 240 million smartphones despite the U.S. restrictions. Looking at Huawei’s capacity, it is not a company that a supplier will want to lose. In fact, losing Huawei for some companies will mean going under.

    These new laws wouldn’t have been necessary if the U.S. did not extend the reach of its ban. The Chinese manufacturer is only responding to the actions of the U.S. government. This whole brouhaha is taking another dimension.
  • The Chinese government is tightening trade freedom as it turns more private enterprises into state-run businesses, which may prompt supply chains focusing on shipments to the US and Europe to accelerate moving out of China, according to a study by a private think tank commissioned by the Taiwan government.

    The report indicated that in 2019, more than 150 private enterprises listed on stock markets were sold to state-owned assets supervision and administration commissions of China's state council and local governments, with their combined capitalization totaling CNY 220 billion (US$31.4 billion), indicating growing government presence in the market.

    What this guys wanted? China now forming huge companies as they need such to oppose US monsters.

    Taiwan's shipments of servers, for instance, shot up 210% in the year and shipments of PC peripheral devices as well as routers and switches also increased 140% and 58.1%, respectively. In the first five months of 2020, Taiwan's shipments of PCs and peripherals again surged 32.5% on year, compared to a 28.0% increase in router and switch shipments, the report cited Taiwan's customs statistics.

    Taiwan is afraid, very afraid. As by taking US side they will be gradually cutting available markets and as they will try to rely on weakening power is always dangerous.

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    The border crisis between China and India has begun to spill over into bilateral trade as the Indian government considers imposing restrictions and higher tariffs on Chinese companies and goods.

    Measures include a directive against the use of telecommunications equipment from Huawei Technologies and other Chinese suppliers. China's auto sector is also being targeted.

    Tensions had been organized by India best military partner - US. Do not want Huawei present in India.

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  • Following the recent deadly border clash between China and India, increased nationalism has been instigated among Indian citizens by certain politicians and media in India. In addition to a campaign to boycott Chinese products among Indian residents, the country's ports have reportedly put extra customs checks on cargoes from China since June 22, including massive components and parts needed by India-based producers, as well as products of Apple, Cisco and Dell. Before the clash, India announced enhanced scrutiny of foreign investments, which was regarded as a measure to prevent acquisitions by Chinese firms. The move was largely taken to serve political purposes and reflected how immature the Indian market and Indian economic strategies are. Echoing the US' decoupling efforts, India wants to receive industrial relocations from China. But it is very difficult to be realized, given its insufficient infrastructure for both hardware and software facilities.

    Cutting economic links with China is not easy. And, Chinese enterprises that have investments in or intend to explore the Indian market should be very cautious of erratic nationalism, and carry out comprehensive assessment before putting their investments in the country. The same scenario also applies to foreign investments from other countries or regions if they cannot guarantee a permanent amicable relationship with India. Under such circumstances, bilateral trade between China and India is likely to drop one third on a yearly basis in 2020, and could even dive by 50 percent.

    China and India have developed close economic ties in the past years, with both sides maintaining comparative advantages in certain sectors like auto manufacturing, telecommunications and pharmaceuticals. Highly dependent on Chinese supplies, many Indian industries cannot afford an irrational boycott of Chinese components. It would take India years of huge efforts to find a substitute, either by shoring up its own industries or luring investment from other countries. Although the two countries have seen expanding economic cooperation in previous years, India has also complained of its trade deficit with China. Rather than asking China to narrow the deficit, it is more critical for India to reflect on its own industrial competitiveness as global trade is related with the rule of comparative advantages.

    Indian consumers prefer cost-efficient products. For instance, Chinese smartphones maintain higher comparative advantages than Indian domestic products. One Chinese smartphone, the OnePlus 8 Pro, sold out in India minutes after hitting shelves on an e-commerce platform despite nationalist boycott of Chinese products.

    World War may start with a simple mistake :)

    India's army reportedly spent six months watching "Chinese spy drones" violating its air space, only to find out they were actually Jupiter and Venus.

    https://www.bbc.com/news/blogs-news-from-elsewhere-23455128

  • India banned dozens of the biggest Chinese mobile applications, including TikTok, in what it called a step toward ensuring safety and sovereignty of the country’s cyberspace. UC Browser, Shareit, Helo, UC News, Kwai and Baidu Map also among the banned mobile apps.

    Nice.

    World War may start with a simple mistake :)

    Well, it won't be mistake, it will be wish for the local capitalists. As Chinese business invation in India had been very fast during last years.

    You can even check India exhibitions we covered where it is almost impossible to find local manufacturers.

  • With the Chinese Communist Party’s imposition of new security measures on Hong Kong, the risk that sensitive U.S. technology will be diverted to the People’s Liberation Army or Ministry of State Security has increased, all while undermining the territory’s autonomy. Those are risks the U.S. refuses to accept and have resulted in the revocation of Hong Kong’s special status.

    Commerce Department regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions, are suspended. Further actions to eliminate differential treatment are also being evaluated. We urge Beijing to immediately reverse course and fulfill the promises it has made to the people of Hong Kong and the world.

    As China finally passed HK law we will see soon event unwind.

    Independent goverment and significant difference of HK can be fully removed as soon as this fall.

  • The National Security Law for Hong Kong was passed unanimously on Tuesday. Chinese President Xi Jinping signed a presidential decree about the legislation. The law is expected to become effective once it is unveiled.

    Materialism always win.

  • High-profile activists Joshua Wong, Nathan Law and Agnes Chow resigned from their political group, Demosisto, and the group itself announced its closure hours after news of the law’s passage. Hong Kong National Front, a pro-independence group, also announced its closure, but said its work would continue in Taiwan and the UK. Another pro-independence group, Studentlocalism, also said it would cease operating

    Operation failed, move on.

  • Companies prodded to rely less on China, but few respond

    BEIJING (AP) — The United States, Japan and France are prodding their companies to rely less on China to make the world’s smartphones, drugs and other products. But even after the coronavirus derailed trade, few want to leave China’s skilled workforce and efficient suppliers of raw materials to move to other countries.

    Disruptions from the pandemic, on top of the U.S.-Chinese tariff war, fueled warnings that relying too much on China leaves global companies vulnerable to costly breakdowns in the event of disasters or political conflict.

    Drug makers stand out as one industry that is trying to reduce reliance on Chinese suppliers by setting up sources of raw materials in the United States and Europe. But consumer electronics, medical devices and other industries are sticking with China.

    “I don’t know of a single company right now that is moving ahead with any plans to move,” said Harley Seyedin, president of the American Chamber of Commerce in South China.

    Philip Richardson, who manufactures loudspeakers in Panyu, near Hong Kong, said he has looked at Vietnam and other countries. But he said while their wages might be as low as 60% of China’s, the savings will be eaten up by the cost of giving up his network of Chinese suppliers.

    “We gave it consideration for about a minute, and it doesn’t make sense,” said Richardson, who has worked in China for 22 years. “When you buy magnets, now you have to pay for transportation and customs duties into other countries, whereas in China we just buy the magnets and they are shipping to us.”

    More here:

    https://apnews.com/bc9f37e67745c046563234d1d2e3fe01

  • The Federal Communication Commission has declared Chinese telecom giants Huawei and ZTE “national security threats,” a move that will formally ban U.S. telecom companies from using federal funds to buy and install Huawei and ZTE equipment.

    Remember, FCC and over goverment agancies are just servants of the largest US corporations.

    Apple lately fight hard to stay afloat using all methods possible, legal, shady and totally criminal.

    It was Apple who was main sponsor for banning main Chinese smartphone manufacturers from selling widely and in retail on US market,

  • Next move

    U.S. chip giant Intel confirmed to Caixin that it has stopped supplying its products to Inspur, China’s largest maker of computer servers.

    An Intel representative described the move as temporary and estimated the suspension would last for about two weeks. Intel took the step to allow the company time to make adjustments to comply with relevant U.S. laws, the person said.

    On June 25, Inspur was named by the U.S. Defense Department as one of 20 Chinese firms that were owned or controlled by the Chinese military. Others on the list included telecom equipment maker Huawei, and surveillance equipment maker Hikvision.

    Rumors are very strong that Apple product can be banned for selling inside China since September 1.

    In case of any other move against Huawei and similar companies Apple can be forced to postpone iPhone release as much as 6 months due to rejection of leading factories to supply them comonents and assembly phones.

  • Boris Johnson is poised to begin phasing out the use of Huawei technology in Britain’s 5G network as soon as this year, in a major about-turn, The Telegraph can disclose.

    GCHQ is understood to have revised its previous assurance that the risks posed by the Chinese technology giant can be safely managed.

    A report due to be presented to the Prime Minister this week is expected to conclude that new US sanctions on Huawei will force the company to use untrusted technology that could make the risk impossible to control.

    Hot war coming soon, I see no other reason to do this now.

  • All the Single Men.

    https://www.abc.net.au/foreign/all-the-single-men/12368622

    "Being a single man in China is tough"..."With 30 million more males than females"... Definitely a war coming.

  • The US Immigration and Customs Enforcement has announced that in order to remain in the country for the fall 2020 semester, international students must take in-person classes at their schools. Students who remain in the US but take entirely online courses may face “immigration consequences including, but not limited to, the initiation of removal proceedings.”

    Expect soft removal of most Chinese students in the fall.

  • Trump administration plans to finalize regulations this week that will bar the U.S. government from buying goods or services from any company that uses products from five Chinese companies including Huawei, Hikvision and Dahua. Dahua or Hikvision are among the top sellers of surveillance equipment and cameras worldwide. The same goes for two-way radios from Hytera Communications Corp and telecommunications equipment or mobile devices like smartphones from Huawei Technologies or ZTE Corp.

    "The danger our nation faces from foreign adversaries like China looking to infiltrate our systems is great," said Russ Vought, acting director of the White House Office of Management and Budget in a statement to Reuters.

    "The Trump Administration is keeping our government strong against nefarious networks like Huawei by fully implementing the ban on Federal procurement."

    Trump will be remembered as US Gorbachev. With same hate for reverse polarity actions.

  • EU also exploited US

    Don’t forget we’re in competition with China, and with many other countries throughout the world. We’re in tremendous economic competition, including Europe, which has never treated us well. The European Union was formed in order to take advantage of the United States. They formed, and they take advantage of the United States. And I know that, and they know I know that, but other Presidents had no idea.

    The relationship is very good, they just don’t treat us very well on trade. They are — they have been very unfair to us over many, many decades. And we’re doing that. It’s very easy to solve. I was all set to solve it actually, and then we got hit with the plague.

    Trump clearly have good source for all this thought, and even solution is same in his head:

  • The British government privately told the Chinese technology giant Huawei that it was being banned from Britain’s 5G telecoms network partly for “geopolitical” reasons following huge pressure from President Donald Trump, the Observer has learned.

  • Huawei begins counterattack, files patent infringement against Verizon, HP and Cisco

    With the US cracking down hard on Huawei and pressurizing the company on multiple fronts, it seems that the smartphone vendor has started to fight back and is targetting multiple brands like HP, Verizon, and even Cisco with patent infringement.

    A few recent changes in the US Government’s FRAND agreements (fair, reasonable, and non-discriminatory) have enabled Huawei to sue the aforementioned companies. In other words, the amendments have made it easier for Huawei to target these companies. The Chinese tech giant’s response to the US sanctions against starts from patent infringement claims Verizon for its own technology and products that it had acquired from Cisco and Hewlett-Packard.

    At the moment, Huawei is demanding royalty payments for hundreds of patents. Notably, sources claimed that this event might also be leveraged by the Chinese company to compel court discovery on Verizon’s and its suppliers’ confidential information. In simplers terms, Huawei would be able to gain in-depth access to its competitor’s products and technology.

    The turn of events was unexpected, to say the least, as the US Government, in particular, did not consider that Huwaei would turn the US patent law against American companies. Additionally, this could also lead to further harm to local companies in the near future as well. So stay tuned as we will be providing more updates on the matter.
  • The tensions over Huawei are not about trade, but global supremacy

    It’s tempting to view the UK’s dilemma about Huawei as an unfortunate consequence of being caught in the crossfire between two superpowers. But in many ways the UK’s predicament can be traced to its own domestic policy failures. When Huawei was founded in the late 1980s, it was the UK – not China – that was a world leader in telecommunication technology. With homegrown firms such as STC, Racal, GEC, Marconi and Ferranti, the UK was second only to the US when it came to telecoms ingenuity. But in the following decades, successive UK governments allowed leading telecoms technology companies to be taken over and sold off to overseas firms. In thrall to free-market orthodoxy, British manufacturing and industry was sacrificed in the interests of the City of London and the financial sector.

    While Huawei’s rise is undoubtedly a story of Chinese success, it is also a story of Anglo-American decline. The global financial crisis laid bare the underlying weaknesses of neoliberal capitalism, but without a clear alternative to take its place the response was to double down on a broken model. In the years since, stagnant wages and productivity, and spiralling inequality have fuelled a surge of political discontent on both sides of the Atlantic.

    https://www.theguardian.com/commentisfree/2020/jul/16/huawei-trade-global-supremacy-us-uk-china-liberal-capitalism

  • De-dollarization: faster than expected

    A global trend toward 'de-dollarization' has already begun. The last piece of 'load-bearing wall' of the 'US Empire State Building' has cracked, in other words.

    Global policies for 'de-dollarization' include sharply reducing US debt holdings, dropping US dollar's status as an anchor currency, increasing non-dollar bulk commodity trade, growing the reserve of non-dollar currencies, and ramping up gold's hedge against the dollar.

    From the perspective of US debt, 22 consecutive months from April 2018 to March 2020 saw global central banks reduce their US debt holdings... In March, yields on both one-month and three-month Treasury bills were negative, while the yield for the 10-year Treasury hit below 1 percent for the first time, according to media reports. This exemplifies global anticipations of a weaker US economy.

    In recent years, many G20 members, such as China, France, Germany, and Russia, have reduced their utilization of the US dollars in trade deals. According SWIFT, in May, the share of US dollars in the international payment market was 40.88 percent, a drop from 44.1 percent in March.

    The share of the US dollar in total foreign exchange reserves of all IMF member countries has fallen from 72 percent in 2000 to 61.99 percent at the end of the first quarter in 2020

    To offset risks brought by US dollars, the US share in global gold reserves fell from 23.64 percent at the end of June 2019 to 15.5 percent at the end of June 2020. This reflects countries' weakening of trust in the US dollar. It is conceivable that the US sanctioning against China due to the country's national security legislation for Hong Kong will further accelerate most countries' 'de-dollarization' programs

    Since the 21st century began, many doubters of 'de-dollarization' have been holding that global 'de-dollarization' is still in its infancy... But the COVID-19 pandemic seems to have triggered a faster 'de-dollarization' progress.
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    "China urges the US to immediately rescind its erroneous decision, otherwise China will undertake legitimate and necessary responses."

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  • India could become a major production base for iPhone following a recent shakeup in Apple's supply chain in the form of Taiwan-based Wistron selling two of its China plants to Chinese maker Luxshare.

    Apple can be main casuality this fall. I hope China will find enough courige to fully block Apple manufacturing facilities and throw company out of China. At least Apple developers had been told to prepare for unusual times and unusual solution with sleepless nights this fall.

  • CHINESE FOREIGN MINISTRY SPOKESWOMAN SAYS BOMB, DEATH THREATS MADE AGAINST CHINESE EMBASSY IN WASHINGTON, BLAMES U.S. GOVERNMENT

    The US has made some preparations for withdrawal from Consulate General in Wuhan. Washington must hope that China will retaliate by closing this consulate, which is a small price for the US. I think China's target will be more likely unexpected, causing the US to feel real pain.