China should prepare for potential U.S. sanctions by increasing use of its own financial messaging network for cross-border transactions in the mainland, Hong Kong and Macau, according to a report from the investment banking unit of Bank of China.

Chinese state lenders have been revamping contingency plans in anticipation of U.S. legislation that could penalise banks for serving officials who implement the new national security for Hong Kong, Reuters reported earlier this month.

Greater use of the Cross-Border Interbank Payment System (CIPS) instead of the Belgium based SWIFT system would also reduce exposure of China's global payments data to the United States, BOC International (BOCI) said in the report, which was co-authored by a former foreign exchange regulator.

The report looked at potential measures the United States could take against Chinese banks, including cutting off their access to the SWIFT financial messaging service, a primary network used by banks globally to make financial transactions.

"A good punch to the enemy will save yourself from hundreds of punches from your enemies," the report wrote, amid deteriorating relating between the world's two largest economies. "We need to get prepared in advance, mentally and practically."

China launched the CIPS clearing and settlement services system in 2015 to help internationalise use of the yuan. Supervised by the central bank, CIPS said it processed 135.7 billion yuan ($19.4 billion) a day in 2019, with participation from 96 countries and regions.

ByteDance threatens to sue US government for TikTok treatment

In response to the US government's latest executive order, Beijing-based TikTok's parent company, ByteDance, today released a statement saying that it will take to US court if the US government fails to treat TikTok fairly.

According to the statement, the "reports" cited in the executive order are of unknown or unverified origin, and concerns that the app "may" be used for false advertising have no basis in fact. "We have made it clear that TikTok has never shared user data with the Chinese government and has never reviewed content upon request," the statement said. "In fact, we have made our review policy and algorithm source code public by establishing the Transparency Center, and no comparable technology company has yet committed to such a responsibility," it added.

This executive order would undermine global businesses' trust in America's commitment to the rule of law. It is what has attracted foreign investment and fueled US economic growth for decades. This order sets a dangerous precedent that runs counter to freedom of expression and open markets.

We will vigorously pursue all available measures to ensure that the rule of law is not abandoned and that our companies and our customers are treated fairly.If the US government does not treat us fairly, we will take our case to the US courts.

For the 100 million US users who call TikTok their home for self-expression, entertainment, and connection, we want them to know that TikTok has never, and will never, waver from our commitment. User safety and community trust have always been our top priority.

https://cntechpost.com/2020/08/07/bytedance-threatens-to-sue-us-government-for-tiktok-treatment/

Canada rewarded for not extraditing Huawei executive fast enough?

NEW TARIFFS: Canada to retaliate 'dollar for dollar' after U.S. slaps 10% tariff on aluminum

"Canadian aluminum does not undermine U.S. national security. Canadian aluminum strengthens U.S. national security and has done so for decades through unparalleled co-operation between our two countries," she said. Trudeau said, "We will always stand up for our aluminum workers. We did so in 2018, and we will stand up for them again now."

https://www.cbc.ca/news/business/trump-aluminum-tariff-1.5677036?__vfz=medium%3Dsharebar&fbclid=IwAR28ashs5KO6Hz0VWlaLCoctEN06OSs_nxgG2RPp5XbPT3hW76YOqa8lPwA

For China it is now extremely important to stall Taiwan economy.

Best way can be to induce total air and sea blockade. With China hlep to supply necessary food and basic goods, but thing for high tech industry. As it is necessary to wipe all high tech out.

Funniest thing here is "Clean path". They preferred not to talk much about it.

But rumors are that it means US great firewall with deep pocket inspection (ala China). All of leading US providers had been actively buying DPI equipment during last years, so must be easy to make.

No more Android updates

A U.S. reprieve that had allowed some trade with Huawei to continue has now lapsed, potentially complicating the operation of some rural telecommunications networks and Huawei cell phones.

The reprieve, which expired Thursday night, provided some exceptions to a trade ban the Trump administration imposed last year on the Chinese tech giant, which it labeled a security threat.

That ban generally prohibited U.S. companies from exporting technology to Huawei. But the reprieve, known as a temporary general license, allowed U.S. software providers to continue sending updates and patches to Huawei so the Chinese company could disseminate them to customers using Huawei cellphones or Huawei wireless network equipment.

The expiration of the license also means that Google won’t be able to send software updates to Huawei cell phones, which run on Google’s Android operating system.

Shares of Alibaba trading on the NYSE during Monday's premarket session slumped 120bps to $251 following President Trump's comments on Saturday about exerting more pressure on Chinese-owned companies.

and

Order by @CommerceGov further restricts access by @Huawei and its non-US affiliates on the Entity List to items produced domestically and abroad from American technology and software.

Commerce Department confirmed its plans to further tighten restrictions governing the company's access to chips made using American technology, even if these chips are produced by foreign firms. The company will also add 38 Huawei affiliates in 21 countries to the government's economic blacklist, the sources said, raising the total to 152 affiliates since Huawei was first added in May 2019.

Chinese firme are moving out of dollars

In past two weeks lot of big Chinese clients got noticesthat it is necessary to make new contracts to fully exclude dollars from payments.

It seems like dollar becoming dangerous currency.

I know few Chinese gear factories who stopped in last two months also using dollars in their product cost calculations and make conversion only at the last stage.

A Gartner, Inc. survey of 260 global supply chain leaders in February and March 2020 found that 33% had moved sourcing and manufacturing activities out of China or plan to do so in the next two to three years.

For decades, China has been the go-to destination for high-quality, low-cost manufacturing, and it has established itself as a key source of supply for almost all major industries including retail and pharmaceutical. However, Gartner research showed that the margin between those companies planning to add jobs in China versus taking them away narrowed sharply in 2019. The primary reason is the increase in tariff costs.

“We have found that tariffs imposed by the U.S. and Chinese governments during the past years have increased supply chain costs by up to 10% for more than 40% of organizations. For just over one-quarter of respondents, the impact has been even higher,”

Just a little setback in general movement

United States Trade Representative Robert Lighthizer and European Union Trade Commissioner Phil Hogan today announced agreement on a package of tariff reductions that will increase market access for hundreds of millions of dollars in U.S. and EU exports. These tariff reductions are the first U.S.-EU negotiated reductions in duties in more than two decades.

Under the agreement, the EU will eliminate tariffs on imports of U.S. live and frozen lobster products. U.S. exports of these products to the EU were over $111 million in 2017. The EU will eliminate these tariffs on a Most Favored Nation (MFN) basis, retroactive to begin August 1, 2020. The EU tariffs will be eliminated for a period of five years and the European Commission will promptly initiate procedures aimed at making the tariff changes permanent. The United States will reduce by 50% its tariff rates on certain products exported by the EU worth an average annual trade value of $160 million, including certain prepared meals, certain crystal glassware, surface preparations, propellant powders, cigarette lighters and lighter parts. The U.S. tariff reductions will also be made on an MFN basis and retroactive to begin August 1, 2020.

Huawei has slowed down the pace of its orders to handset ODMs in China, as the impact of the latest US trade ban against the Chinese brand intensifies, according to sources at China-based handset ODMs.

Things are bad for Huawei and lot of other Chinese firms.

next attack round is rumored to be on Xiaomi and BBK brands (Oppo and Vivo).