Beijing’s economic ‘red lines’ may clash with Trump’s 90-day plan, analysts say

The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany. The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice. After all, so


The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany. The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice. After all, so
Beijing’s economic ‘red lines’ may clash with Trump’s 90-day plan, analysts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: huileng tan, thomas peter, pool, getty images
Keywords: news, cnbc, companies, trump, trade, policy, xi, beijings, wrote, lines, 90day, clash, trumps, chinese, plan, say, technology, red, china, analysts, statements, economic, 2025


Beijing's economic 'red lines' may clash with Trump's 90-day plan, analysts say

U.S. President Donald Trump and Chinese President Xi Jinping may have put their tit-for-tat tariff fight on hold, but differences between the two countries’ views on technology and state-supported businesses will challenge negotiations between the two economic giants, analysts said.

“Staunchly committed to the Chinese economic model, Xi will continue to lend state support to targeted industries, particularly in technology under the Made in China 2025 programme,” Eleanor Olcott, China policy analyst at research firm TS Lombard, wrote on Monday.

Washington has accused China of forcing technology transfers, and tacitly supporting intellectual property violations and cyber-crime, but those issues were downplayed in official descriptions of the weekend’s agreement.

“Despite White House economic advisor (Larry) Kudlow suggesting that the two sides are ‘pretty close’ on an agreement on intellectual property theft, 90 days still looks like a short period for discussions on complicated issues such as non-tariff barriers,” wrote Zhu Huani, an economist at Mizuho Bank in a note on Tuesday.

“Whilst reducing (the) trade gap could be the easier part to begin with, China is less likely to make concessions on its industrial policies such as ‘Made in China 2025,’ which might hinder discussion surrounding technology transfer,” added Zhu.

The “Made in China 2025” plan is Beijing’s industrial policy to invest heavily in high-end technologies such as artificial intelligence in a bid to catch up with rivals like the U.S. and Germany.

The analysts’ comments follow Trump and Xi’s agreement over the weekend at the G-20 meeting in Argentinato put their bilateral trade war on pause momentarily. They would, according to official statements, hold off on slapping additional tariffs on each other’s goods after Jan. 1 as talks continue between both countries.

As part of the deal, China said it would purchase more American imports, particularly in energy and agriculture. Beijing will also exert more control over the flow of fentanyl — a synthetic opioid that is 50 times more addictive than heroin and has been linked to thousands of overdose deaths in the United States. China is one of the world’s top producers of ingredients used to manufacture fentanyl, according to the U.S. Department of Justice.

But, “it is unclear how this [deal at the G-20] will resolve issues related to IP protection and forced technology transfers in China — it won’t,” economists from French trade credit insurer Coface wrote in a note on Monday.

After all, some are even jokingly questioning if Trump and Xi even attended the same meeting given the significant differences in statements from the two sides.

“There is reason to believe the two parties do not quite meet over the finer details of the deal: pointedly, no joint statement was released after the meeting. Furthermore, the statements that the U.S. and China issued separately showed material divergences, with the Chinese statement making no mention of the 90-day deadline on the threatened 25 percent tariff increase,” economists from Pictet Wealth Management wrote Monday.

Neither side referred to the “Made in China 2025” industrial policy, Pictet noted.

“Given the differences in starting positions, with the Chinese side setting red lines around its state-led system, it is highly unlikely that the time-frame of 90 days will allow the U.S. to extract concessions Trump could present as a large-scale ‘win’ with any degree of conviction,” said TS Lombard’s Olcott.

—CNBC’s Kevin Breuninger, Javier David and Saheli Roy Choudhury contributed to this report.

Disclosure: Larry Kudlow is a former CNBC contributor.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: huileng tan, thomas peter, pool, getty images
Keywords: news, cnbc, companies, trump, trade, policy, xi, beijings, wrote, lines, 90day, clash, trumps, chinese, plan, say, technology, red, china, analysts, statements, economic, 2025


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China confused by Trump’s words of triumph after trade truce

US and China hammer out 90-day trade truce — Seven experts break down what that means for investors 11 Hours Ago | 04:21China is reportedly confused by the Trump administration’s version of what happened in Buenos Aires. It’s just madness,” the former official, who asked for anonymity to describe confidential discussions, told the Post. The White House said the nations had agreed to a 90-day truce on trade. Following the meeting, Trump told reporters it was “an incredible deal” and that it “goes


US and China hammer out 90-day trade truce — Seven experts break down what that means for investors 11 Hours Ago | 04:21China is reportedly confused by the Trump administration’s version of what happened in Buenos Aires. It’s just madness,” the former official, who asked for anonymity to describe confidential discussions, told the Post. The White House said the nations had agreed to a 90-day truce on trade. Following the meeting, Trump told reporters it was “an incredible deal” and that it “goes
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Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: kate rooney, kevin lemarque
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China confused by Trump's words of triumph after trade truce

US and China hammer out 90-day trade truce — Seven experts break down what that means for investors 11 Hours Ago | 04:21

China is reportedly confused by the Trump administration’s version of what happened in Buenos Aires.

After the key meeting between President Donald Trump and Chinese President Xi Jinping, officials from Beijing are “puzzled and irritated” by the Trump administration’s behavior, The Washington Post reported Tuesday, citing a former U.S. government official who has been in contact with the Chinese officials.

“You don’t do this with the Chinese. You don’t triumphantly proclaim all their concessions in public. It’s just madness,” the former official, who asked for anonymity to describe confidential discussions, told the Post.

The two world leaders met over dinner during the G-20 summit in Argentina last week. The White House said the nations had agreed to a 90-day truce on trade. Following the meeting, Trump told reporters it was “an incredible deal” and that it “goes down, certainly, if it happens, it goes down as one of the largest deals ever made.”

But the Post reported that the Chinese have not acknowledged a 90-day deadline for the talks and have not said that they would “immediately” increase purchases of U.S. farm goods.


Company: cnbc, Activity: cnbc, Date: 2018-12-04  Authors: kate rooney, kevin lemarque
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It’s not over: The US-China trade war is still on despite 90-day tariff ceasefire, experts say

“This is not a truce, this is not an armistice,” Steve Okun, senior advisor at McLarty Associates, told CNBC’s “Street Signs” on Monday. Trump and Xi met at the G-20 summit in Argentina over the weekend. Stocks in Asia traded higher on Monday morning after the news, U.S. stock futures jumped, and oil prices soared. But there aren’t many reasons for such optimism in markets to continue, some experts said. “So, it makes sense for the markets to be positive on this development because things look b


“This is not a truce, this is not an armistice,” Steve Okun, senior advisor at McLarty Associates, told CNBC’s “Street Signs” on Monday. Trump and Xi met at the G-20 summit in Argentina over the weekend. Stocks in Asia traded higher on Monday morning after the news, U.S. stock futures jumped, and oil prices soared. But there aren’t many reasons for such optimism in markets to continue, some experts said. “So, it makes sense for the markets to be positive on this development because things look b
It’s not over: The US-China trade war is still on despite 90-day tariff ceasefire, experts say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: yen nee lee, jim watson, afp, getty images
Keywords: news, cnbc, companies, 90day, say, trade, experts, president, things, despite, tariffs, xi, trump, markets, ceasefire, uschina, chinese, tariff, weekend, war


It's not over: The US-China trade war is still on despite 90-day tariff ceasefire, experts say

Markets around the world cheered the 90-day ceasefire that U.S. President Donald Trump and Chinese President Xi Jinping agreed on over the weekend, but experts repeatedly expressed doubt that any concrete steps to totally ease tensions between the two economic giants can be achieved in so short a time.

“This is not a truce, this is not an armistice,” Steve Okun, senior advisor at McLarty Associates, told CNBC’s “Street Signs” on Monday. He noted the additional tariffs that the U.S. and China have imposed on each other’s products are still in place, so the 90-day withholding of further levies doesn’t signal the end of the trade fight.

“Sure, it’s a good sign that presidents talk, it’s a good sign that they’ve set some kind of 90-day period — even though we don’t really know what’s expected to occur in that 90 days — but the trade war is on,” added Okun, a trade expert and a board member of the American Chamber of Commerce in Singapore.

Trump and Xi met at the G-20 summit in Argentina over the weekend. There, the American president agreed to not raise tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent in January as he had previously threatened, according to a statement from the White House. But, if the two countries fail to reach a deal at the end of 90 days, the threatened tariffs will be implemented, the statement said.

Notably, the 90-day period was not emphasized by the Chinese side.

Stocks in Asia traded higher on Monday morning after the news, U.S. stock futures jumped, and oil prices soared. But there aren’t many reasons for such optimism in markets to continue, some experts said.

The development in Buenos Aires over the weekend was simply a “continuity of the trade policy that the Trump administration has had,” said Antonio Fatas, an economics professor at INSEAD. That policy involves the president finding a way to “break” things and then fix them, which results in “a sort of relief that things are back together,” he said.

“So, it makes sense for the markets to be positive on this development because things look better than a week ago. But there’s no sense of direction, it’s not clear what battle we’re fighting here … it’s very hard to see the endgame when you don’t know what the strategy is here,” Fatas told CNBC’s “Street Signs” on Monday.


Company: cnbc, Activity: cnbc, Date: 2018-12-03  Authors: yen nee lee, jim watson, afp, getty images
Keywords: news, cnbc, companies, 90day, say, trade, experts, president, things, despite, tariffs, xi, trump, markets, ceasefire, uschina, chinese, tariff, weekend, war


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