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Sunday, September 30, 2018

September 30, 2018

How the US-China trade war may be good for Beijing

How the US-China trade war may be good for BeijingThe opening salvos of the trade war between the US and China were deafening, and while the battle is far from over, a rift between the countries may be beneficial to Beijing in the long term, experts say. Donald Trump, the US President, fired the first warning earlier this year by taxing key Chinese exports including solar panels, steel and aluminium. The most significant escalation rolled in this week with new tariffs affecting $200 billion (£150 billion) worth of items, effectively taxing half of all goods coming into the US from China. Beijing has retaliated each time in kind, most recently slapping tariffs of five to ten per cent on $60 billion of American goods. China has pledged to match the US shot-for-shot, and the world’s second largest economy is unlikely to blink anytime soon. Getting Washington to back down means caving into demands, but publicly bowing to the US would be far too embarrassing for Xi Jinping, China’s president. Still, experts say if Beijing can play its cards right, US trade war pressures could positively support China over the long term by lowering the inter-dependence of the two economies. “The fact that a quick political decision in either Washington or Beijing could create the conditions that start an economic tailspin in either country is actually a lot more dangerous than onlookers have acknowledged before,” said Abigail Grace, a research associate who focuses on Asia at the Center for New American Security, a think tank. Ambrose: China - US trade war “From both Trump and Xi, you’ve seen a willingness to engage in more head-to-head economic warfare, and that increases risk overall… that degree of leverage for either is not particularly helpful or productive.” For instance, the US implemented in April a seven-year ban on exports to Chinese telecom firm ZTE after learning it didn’t abide by a previous settlement agreement for violating trade sanctions. ZTE announced weeks after it planned to “cease major operating activities” because of financial consequences from the ban. Trump later tweeted he was working with Mr Xi to get ZTE back on its feet; the ban was lifted. That a Chinese company could be tanked by one decision indicates an unhealthy level of interdependence, Ms Grace said. Along those lines, she said it would be equally disastrous for the US if China started blocking shipments for items manufactured in the country crucial to American supply chains like parts for Apple's iPhone. Donald Trump's trade war is all about containing rampant China Thus the trade war could “force China to build a more vertically integrated supply chain within the country,” said Damien Ma, an economist and associate director at the Paulson Institute, a think tank. Doing so would allow China control from beginning to end, whether assembling widgets or dealing with more advanced technologies. “That’s a great outcome for China.” This is not lost on Mr Xi. “Internationally, it’s becoming more and more difficult [for China] to obtain advanced technologies and key know-how,” he said this week. “Unilateralism and trade protectionism are rising, forcing us to adopt a self-reliant approach; this is not a bad thing.” To properly do this, however, China needs to move away from supporting its wasteful, inefficient state-owned enterprises and support the private sector, said Nicholas Lardy, a China specialist and senior fellow at the Peterson Institute for International Economics.   While that’s easier said than done, Beijing has long known it would have to allow economic growth to mature away from manufacturing and exports and toward services sectors. In perspective | Emerging markets This could lead to more jobs created that are a better fit than factory gigs for China’s increasingly savvy middle class and growing numbers of university graduates, Ms Grace said. Plus, as Mr Trump continues to bellow and bully other nations, China may even be seen as “more politically stable,” Mr Ma said. One potential impact of that, he thinks, is the yuan becoming favored over the dollar as the reliable currency of choice for investments and transactions. China has long wanted to boost the role of its currency on the global stage. A report released this week by the European Central Bank that simulated the impact of the trade war echoed similar sentiments. It suggested the US would suffer from the brunt of diminished trade and deteriorating business and consumer confidence, whereas China could supplement lost trade with the US by selling to other countries. China is “giving a real, clear alternative - a choice,” Mr Ma said. “Before, even if you didn’t like the US, there wasn’t much of a choice, but China - even if you don’t like them that much … they are increasingly saying, we are a legitimate choice; we do offer things that you want and need”.




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September 30, 2018

Abused Hong Kong maid Erwiana 'rises again'

Abused Hong Kong maid Erwiana 'rises again'She was once the face of abused maids in Hong Kong -- imprisoned, starved and beaten so badly she lost control of her bodily functions. Erwiana completed a degree in economics this month -- the culmination of a dream that brought her to Hong Kong in 2013 before her life was turned upside down. "Before I went to Hong Kong, I had been dreaming I could make enough money to study," the 27-year-old told AFP from her home in Indonesia's cultural capital Yogyakarta.




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September 30, 2018

Some defend official who said girls 'ruin everything'

Some defend official who said girls 'ruin everything'SODDY-DAISY, Tenn. (AP) — Some people are defending a Tennessee high school official who posted a video explaining his ban on athletic shorts, saying "blame the girls, because they pretty much ruin everything."




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September 30, 2018

F-35 fighter jet crashes in South Carolina, pilot ejects

F-35 fighter jet crashes in South Carolina, pilot ejectsThe pilot, the only person aboard the craft, ejected safely and was being checked for injuries, said a Pentagon spokesman, adding that there were no other injuries. It was a Lockheed Martin F-35B, a short take-off/vertical landing version of the F-35, said a U.S. military official, speaking on condition of anonymity. It was the first crash of an F-35 fighter jet since they became operational in 2006, said another military official, also speaking on the condition of anonymity.




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September 30, 2018

US closes consulate in southern Iraq following attacks

US closes consulate in southern Iraq following attacksWASHINGTON (AP) — The State Department said Friday that it would temporarily close the U.S. consulate in the southern Iraqi city of Basra following a rocket attack earlier this month blamed on Iranian-backed militias.




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September 30, 2018

Celebrity

“Do you want me to give you a hotel? ... I want you to tell America what you need and I will get it for you.”


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September 30, 2018

Powerful typhoon bears down on flood-battered Japan

A powerful typhoon headed towards Japan's main island on Sunday forcing the cancellation or suspension of airline and train services and causing power outages and evacuations from areas still recovering from a typhoon last month.


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September 30, 2018

Macedonians vote on whether to change country's name

Macedonians go to polls on Sunday to vote on whether to change their country's name to Republic of North Macedonia, urged by a pro-Western government to pave the way for NATO and EU membership by resolving a decades-old name dispute with Greece.


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