China’s new digital currency could encourage worldwide use of the yuan, says CEO

China’s proposed digital currency could trigger global use of the yuan, according to the CEO of American cryptocurrency financial services firm Circle. The People’s Bank of China (PBOC) last month announced that it’s close to launching its own digital currency, saying that the rationale behind the move is to “protect” its foreign exchange sovereignty. This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world. Jeremy Allaire CEO of CircleChina’s centra


China’s proposed digital currency could trigger global use of the yuan, according to the CEO of American cryptocurrency financial services firm Circle. The People’s Bank of China (PBOC) last month announced that it’s close to launching its own digital currency, saying that the rationale behind the move is to “protect” its foreign exchange sovereignty. This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world. Jeremy Allaire CEO of CircleChina’s centra
China’s new digital currency could encourage worldwide use of the yuan, says CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: eustance huang
Keywords: news, cnbc, companies, libra, used, digital, world, yuan, worldwide, currency, chinas, ceo, worlds, allaire, encourage, transactions


China's new digital currency could encourage worldwide use of the yuan, says CEO

China’s proposed digital currency could trigger global use of the yuan, according to the CEO of American cryptocurrency financial services firm Circle. The People’s Bank of China (PBOC) last month announced that it’s close to launching its own digital currency, saying that the rationale behind the move is to “protect” its foreign exchange sovereignty.

This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world. Jeremy Allaire CEO of Circle

China’s central bank plans to launch its digital token through a two-tier system, under which both the PBOC and commercial banks would be legitimate issuers. “I look at this really meeting several goals. But, I think the bigger opportunity here is this is a way for the Chinese yuan to be distributed globally,” Circle CEO Jeremy Allaire told CNBC’s “Squawk Box” on Wednesday. “This becomes a mechanism by which (the yuan) can be used in everyday transactions all around the world,” added Allaire, an internet entrepreneur who also founded video streaming firm Brightcove. “It’s ultimately a foundation for the internationalization” of the yuan.

Beijing has in recent years pushed hard to get more international entities to use the yuan outside China. The U.S. dollar is currently the world’s “reserve currency” — about 58 percent of all foreign exchange reserves in the world are in U.S. dollars, according to the IMF, and about 40 percent of the world’s debt is denominated in dollars. Mu Changchun, deputy director of the PBOC’s payments department, said that the new digital currency will have similarities to Facebook’s proposed Libra coin. It would be as safe as central-bank issued paper notes, he claimed, and could be used on platforms such as Tencent’s WeChat and even without an internet connection. Libra, which was unveiled in June, will be backed by relatively stable government-backed money — unlike bitcoin and other cryptocurrencies, which can be highly volatile and speculative. Facebook says it’s designed to enable anyone to securely store money for free on their phone and to allow people to securely send and receive Libra around the world.


Company: cnbc, Activity: cnbc, Date: 2019-09-13  Authors: eustance huang
Keywords: news, cnbc, companies, libra, used, digital, world, yuan, worldwide, currency, chinas, ceo, worlds, allaire, encourage, transactions


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China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China


Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China. China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital. It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China
China to scrap foreign investment quotas to attract more money into its stock, bond markets Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


China to scrap foreign investment quotas to attract more money into its stock, bond markets

Investors watch the electronic board at a stock exchange hall on February 11, 2019 in Chengdu, Sichuan Province of China.

China’s foreign exchange regulator said on Tuesday that it had decided to scrap quota restrictions on two major inbound investment schemes, as a weakening yuan and rising outflows prompt Beijing to seek to attract more foreign capital.

While underlining China’s thirst for overseas funding as its economy slows amid a debilitating trade war with the United States, the move also appears largely symbolic, as two-thirds of the existing quotas remain unused.

China’s State Administration of Foreign Exchange (SAFE) would remove quotas on the dollar-dominated qualified foreign institutional investor (QFII) scheme and its yuan-denominated sibling, RQFII, it said in a statement on its website.

It said the move would “make it much more convenient for overseas investors to participate in China’s domestic financial markets, making China’s bond and stock markets more broadly accepted by international markets.”

The removal of quotas comes amid an escalating Sino-U.S. trade war that threatens growth in the world’s second-biggest economy.

Beijing hopes that foreign capital inflows could help to offset rising outflows and lend support to its yuan, which has dropped to its lowest levels against the U.S. dollar since the onset of the global financial crisis in 2008.

Inflows could also help bolster China’s balance of payments, as some analysts fear the country is slipping dangerously towards twin deficits in its fiscal and current accounts.

The removal “is a clear signal that policymakers want to encourage capital inflows,” wrote Win Thin, Global Head of Currency Strategy at Brown Brothers Harriman.

“The corollary is that they are still very worried about capital outflows and so will make sure to avoid any steps that might increase them,” he said.

China in January doubled the QFII quota to $300 billion, but only $111.4 billion of the limit had been used by foreign investors by the end of August.

China’s securities regulator also published draft rules earlier this year that would combine the QFII and RQFII programmes while also simplifying access for overseas investors.


Company: cnbc, Activity: cnbc, Date: 2019-09-11
Keywords: news, cnbc, companies, quotas, yuan, capital, bond, investment, money, stock, attract, markets, qfii, china, investors, overseas, outflows, scrap, foreign, exchange, chinas


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China’s exports to the US are falling sharply as Trump escalates the trade war

China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-U.S. trade war escalates. August exports fell 1% from a year earlier, the biggest fall since June, when it fell 1.3%, customs data showed on Sunday. Among its major trade partners, China’s August exports to the United States fell 16% year-on-year, slowing sharply from a declin


China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-U.S. trade war escalates. August exports fell 1% from a year earlier, the biggest fall since June, when it fell 1.3%, customs data showed on Sunday. Among its major trade partners, China’s August exports to the United States fell 16% year-on-year, slowing sharply from a declin
China’s exports to the US are falling sharply as Trump escalates the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-08
Keywords: news, cnbc, companies, fell, falling, trade, united, trump, imports, exports, surplus, war, escalates, chinas, growth, sharply, shipments, states


China's exports to the US are falling sharply as Trump escalates the trade war

China’s exports unexpectedly fell in August as shipments to the United States slowed sharply, pointing to further weakness in the world’s second-largest economy and underlining a pressing need for more stimulus as the Sino-U.S. trade war escalates.

Beijing is widely expected to announce more support measures in coming weeks to avert the risk of a sharper economic slowdown as the United States ratchets up trade pressure, including the first cuts in some key lending rates in four years.

On Friday, the central bank cut banks’ reserve requirements for a seventh time since early 2018 to free up more funds for lending, days after a cabinet meeting signalled that more policy loosening may be imminent.

August exports fell 1% from a year earlier, the biggest fall since June, when it fell 1.3%, customs data showed on Sunday. Analysts had expected a 2.0% rise in a Reuters poll after July’s 3.3% gain.

That’s despite analyst expectations that a falling yuan would offset some cost pressure and looming tariffs may have prompted some Chinese exporters to bring forward or “front-load” U.S.-bound shipments into August, a trend seen earlier in the trade dispute.

China let its currency slide past the key 7 per dollar level in August for the first time since the global financial crisis, and Washington labelled it a currency manipulator.

“Exports are still weak even in the face of substantial yuan currency depreciation, indicating that sluggish external demand is the most important factor affecting exports this year,” said Zhang Yi, economist at Zhong Hai Sheng Rong Capital Management.

Among its major trade partners, China’s August exports to the United States fell 16% year-on-year, slowing sharply from a decline of 6.5% in July. Imports from America slumped 22.4%.

Many analysts expect export growth to slow further in coming months, as evidenced by worsening export orders in both official and private factory surveys. More U.S. tariff measures will take effect on Oct. 1 and Dec. 15.

“China-U.S. trade friction has led to a sharp decline in China’s exports to the United States,” said Steven Zhang, chief economist and head of research at Morgan Stanley Huaxin Securities.

Exports to Europe, South Korea, Australia, and Southeast Asia also worsened on an annual basis, compared with July, while shipments to Japan and Taiwan posted slightly better growth than the previous month.

Sunday’s data also showed China’s imports shrank for the fourth consecutive month since April. Imports dropped 5.6% on-year in August, slightly less than an expected 6.0% fall and unchanged from July’s 5.6% decline.

Sluggish domestic demand was likely the main factor in the decline, along with softening global commodity prices. China’s domestic consumption and investment have remained weak despite more than a year of growth boosting measures.

China reported a trade surplus of $34.84 billion last month, compared with a $45.06 billion surplus in July. Analysts had forecast a surplus of $43 billion for August.


Company: cnbc, Activity: cnbc, Date: 2019-09-08
Keywords: news, cnbc, companies, fell, falling, trade, united, trump, imports, exports, surplus, war, escalates, chinas, growth, sharply, shipments, states


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Tariffs are no longer China’s biggest problem in the trade war

Two Fridays ago, pundits seemed to be beside themselves over what was the latest flare up in the U.S.-China trade war. President Trump raised tariffs in retaliation for China’s retaliatory tariffs, he called Fed Chairman Jerome Powell an “enemy,” and the Dow plummeted 623 points while the Nasdaq closed 3% lower. It’s not the new round of tariffs that went into effect; we’ve been playing the tit-for-tat tariff war for more than a year. It’s important to note that decoupling, even if the trend con


Two Fridays ago, pundits seemed to be beside themselves over what was the latest flare up in the U.S.-China trade war. President Trump raised tariffs in retaliation for China’s retaliatory tariffs, he called Fed Chairman Jerome Powell an “enemy,” and the Dow plummeted 623 points while the Nasdaq closed 3% lower. It’s not the new round of tariffs that went into effect; we’ve been playing the tit-for-tat tariff war for more than a year. It’s important to note that decoupling, even if the trend con
Tariffs are no longer China’s biggest problem in the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: jake novak
Keywords: news, cnbc, companies, china, economy, trade, trump, google, sources, tariffs, biggest, war, president, chinas, decoupling, problem, longer


Tariffs are no longer China's biggest problem in the trade war

Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit in Osaka on June 29, 2019. Brendan Smialowski | AFP | Getty Images

What a difference two weeks makes. Two Fridays ago, pundits seemed to be beside themselves over what was the latest flare up in the U.S.-China trade war. President Trump raised tariffs in retaliation for China’s retaliatory tariffs, he called Fed Chairman Jerome Powell an “enemy,” and the Dow plummeted 623 points while the Nasdaq closed 3% lower. Now it seems like trade deal optimism is back in the air. New formal talks between the U.S. and China have been announced for next month, and there are even high-level Chinese sources suggesting a breakthrough could occur at those meetings. It doesn’t appear there’s anything the Trump administration has done to improve this sentiment. Right now, it’s the more encouraging news and messaging from China that’s the cause of that optimism. But what forced this sudden change in the rhetoric from Beijing? It’s not the new round of tariffs that went into effect; we’ve been playing the tit-for-tat tariff war for more than a year. It’s not the economic reports; they’ve been a little too mixed lately to force any dramatic moves. It’s not even the decision by Hong Kong administrator Carrie Lam to fully withdraw the controversial mainland extradition bill; it’s still not clear that the Hong Kong unrest would be affected in any way by a trade deal.

Given the timing of the change in tone, it seems more likely that what’s making the difference is a realization on both sides that there’s another way this trade war could end – and that possible ending is one the U.S. is very unlikely to lose. That alternate ending is summed up in one word: decoupling. The decoupling push is quite different than any U.S. efforts to get China to open up more of its economy to American companies. Instead, it focuses on reducing America’s extremely heavy reliance on China for so much of its manufacturing needs. Even if China’s economy weren’t so closed off to so many American goods and services, a strong argument has long been made that the U.S. needs to diversify its sources for imports. While finding those new sources wouldn’t necessarily do anything to dent America’s trade imbalances, it would reduce the risks of a major disruption to the U.S. economy based on disputes or other problems connected to a single foreign country. So what happened between Aug. 23 and this week’s trade optimism-fueled rally? Thanks to some major news about Google, the world got its clearest notice yet that U.S.-China decoupling has gone from just a theory to something that’s really happening. Just five days after that trade war flare up, the Nikkei business daily reported on Aug. 28 that Google is shifting its Pixel smartphone production to Vietnam from China starting this year and that the company is also looking to shift some of its smart home speaker assembly to Thailand. It’s not that Google is the first U.S.-based company to announce some shift away from China; more than 50 other big names have moved out or scaled back. But the timing of Google’s reported plans and how they seem to have affected Beijing can’t be ignored. It’s important to note that decoupling, even if the trend continues, isn’t necessarily a bullish force for the U.S. economy. It doesn’t mean there will be any increase in American jobs, as the expected Google moves to Vietnam and Thailand make clear. The tariffs on Chinese goods are also not making America richer or directly growing our economy, no matter what the White House says.


Company: cnbc, Activity: cnbc, Date: 2019-09-06  Authors: jake novak
Keywords: news, cnbc, companies, china, economy, trade, trump, google, sources, tariffs, biggest, war, president, chinas, decoupling, problem, longer


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Treasury yields jump after US and China trade leaders agree to meet in Washington

U.S. government debt yields rose across the board Thursday after the China’s Ministry of Commerce said that the leaders of the U.S. and Chinese trade delegations held a phone call and agreed to meet next month in Washington, D.C. The yield on the benchmark 10-year Treasury note rose 11 basis points to 1.562%, while the yield on the 30-year Treasury bond jumped a similar 9 basis points to 2.055%. The 2-year note yield traded higher at 1.47%; yields rise as prices fall. Thursday’s pivot away from


U.S. government debt yields rose across the board Thursday after the China’s Ministry of Commerce said that the leaders of the U.S. and Chinese trade delegations held a phone call and agreed to meet next month in Washington, D.C. The yield on the benchmark 10-year Treasury note rose 11 basis points to 1.562%, while the yield on the 30-year Treasury bond jumped a similar 9 basis points to 2.055%. The 2-year note yield traded higher at 1.47%; yields rise as prices fall. Thursday’s pivot away from
Treasury yields jump after US and China trade leaders agree to meet in Washington Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: thomas franck
Keywords: news, cnbc, companies, jump, trade, leaders, china, rose, meet, commerce, chinas, agree, treasury, yields, month, chinese, washington, tariffs, yield


Treasury yields jump after US and China trade leaders agree to meet in Washington

U.S. government debt yields rose across the board Thursday after the China’s Ministry of Commerce said that the leaders of the U.S. and Chinese trade delegations held a phone call and agreed to meet next month in Washington, D.C.

Though a formal trade agreement remains a distant prospect, Wall Street welcomed the news of the meeting as one of the first positive developments between the world’s two largest economies over the past several weeks.

The yield on the benchmark 10-year Treasury note rose 11 basis points to 1.562%, while the yield on the 30-year Treasury bond jumped a similar 9 basis points to 2.055%. The 2-year note yield traded higher at 1.47%; yields rise as prices fall.

Thursday’s pivot away from Treasurys came after China’s Commerce Minister said Liu He, China’s top negotiator on trade, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Beijing said the two sides agreed to hold another round of trade negotiations next month while consultations and other strategists will convene in September in preparation for the meeting, according to a translation of the Chinese Commerce Ministry statement.

The U.S. and China have in recent months escalated their trade war with new tariffs and barbed rhetoric, weighing on investor sentiment and fueling a bid for safer assets like U.S. debt. U.S. tariffs on $112 billion of Chinese imports took effect earlier this month, with additional duties set for later this year.

Company payrolls surged by 195,000 in August, according to a report from ADP and Moody’s Analytics, topping economist expectations of a gain of just 140,000. August’s growth was the best since the 255,000 added in April.


Company: cnbc, Activity: cnbc, Date: 2019-09-05  Authors: thomas franck
Keywords: news, cnbc, companies, jump, trade, leaders, china, rose, meet, commerce, chinas, agree, treasury, yields, month, chinese, washington, tariffs, yield


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China’s 25 best start-ups to work for, according to LinkedIn

China’s hottest start-ups right now are those making major breakthroughs in artificial intelligence, according a new report from LinkedIn. Artificial intelligence businesses taking the lead in autonomous driving are among the most popular companies to work for in the country, dominating six of the top 10 positions in LinkedIn’s list of the best start-ups 2019. Horizon RoboticsGlobal headcount: 1,200 Headquarters: Beijing Artificial intelligence business Horizon Robotics produces technologies for


China’s hottest start-ups right now are those making major breakthroughs in artificial intelligence, according a new report from LinkedIn. Artificial intelligence businesses taking the lead in autonomous driving are among the most popular companies to work for in the country, dominating six of the top 10 positions in LinkedIn’s list of the best start-ups 2019. Horizon RoboticsGlobal headcount: 1,200 Headquarters: Beijing Artificial intelligence business Horizon Robotics produces technologies for
China’s 25 best start-ups to work for, according to LinkedIn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: karen gilchrist
Keywords: news, cnbc, companies, chinas, headcount, shanghai, beijing, business, headquarters, work, linkedin, company, intelligence, technology, according, startups, best, startup, artificial


China's 25 best start-ups to work for, according to LinkedIn

China’s hottest start-ups right now are those making major breakthroughs in artificial intelligence, according a new report from LinkedIn. Artificial intelligence businesses taking the lead in autonomous driving are among the most popular companies to work for in the country, dominating six of the top 10 positions in LinkedIn’s list of the best start-ups 2019. But it is internet behemoth and online content platform ByteDance that tops the ranks as China’s most popular start-up this year. To be considered for this year’s list, companies had to be privately-held, be seven years or younger, and have 50 or more employees. They were then ranked based on LinkedIn user feedback across four criteria: Employment growth; engagement with employees; job interest; and ability to attract top talent from leading employers. CNBC Make It takes a look at the list of the 25 most attractive start-ups in China right now.

Top 25:

10. Tongdun Technology

Global headcount: 1,300 Headquarters: Hangzhou Hangzhou-headquartered Tongdun Technology is a risk management start-up launched in 2013 to help businesses with their decision-making processes. Six years on, the company has received several innovation awards and served 5,000 corporate customers from its 13 offices across Asia Pacific and the U.S.

Inside Tongdun Technology’s office. Tongdun Technology

9. Horizon Robotics

Global headcount: 1,200 Headquarters: Beijing Artificial intelligence business Horizon Robotics produces technologies for use in applications such as smart driving. The four-year-old start-up this year completed a $600 million Series B funding round, which valued the company at $3 billion. It was founded by the former head of Baidu’s Deep Learning Institute, Dr. Yu Kai.

8. Cambricon

Global headcount: 1,000 Headquarters: Beijing Three-year-old start-up Cambricon is an artificial intelligence chip developer. The 1,000-strong workforce is highly skilled, with 65% having a master’s degree in software algorithms, chip design and computer architecture. The fast-growing business is currently hiring across its offices in Beijing, Shanghai, Shenzhen, Xi’an, Hefei and Nanjing.

7. WM Motor

Global headcount: 3,000 Headquarters: Shanghai Autos manufacturer WM Motor launched in Shanghai in 2015 to drive ahead in the electric vehicles market. The four-year-old business, which has raised over $3 billion so far, has developed two electric vehicles to date and has ambitions to become a “new eco-service provider.”

6. 4Paradigm

Global headcount: 500-1,000 Headquarters: Beijing 4Paradigm is an artificial intelligence and technology provider for business clients. The company’s youthful workforce has an average age of 30, and more than half of them are university graduates with expertise in new technologies such as machine learning. The company is currently recruiting in its Beijing, Shanghai and Shenzhen offices.

5. Momenta.ai

Global headcount: 500-1,000 Headquarters: Beijing Momenta.ai in its own words “builds autonomous driving brains.” The auto business, which has products including highway autopilot and autonomous parking, last year became China’s first autonomous driving unicorn after receiving backing from Tencent and several state-owned investors.

4. YITUTech

Global headcount: 1,000 Headquarters: Shanghai YITUTech is an artificial intelligence start-up that provides facial recognition technology to businesses in industries ranging from security and medicine, to finance and retail. Currently, the $2 billion company is hiring specialists in engineering, research and development and project management in Shanghai and Beijing.

3. Bitmain

Global headcount: 2,500 Headquarters: Beijing Bitmain is a semiconductor design company known for its custom chip design for bitcoin mining machines. The business’ headquarters are in Beijing, but its has research centers globally — including the U.S., Canada, Switzerland, Russia and Brazil. It currently accepts unsolicited job applications.

2. DiDi

Global headcount: 5,000 Headquarters: Beijing DiDi Chuxing, commonly known as DiDi, is a Chinese ride-hailing business headquartered in Beijing. The company provides a full breadth of transportation services — ranging from taxis to buses and e-bikes — in over 1,000 cities worldwide. The seven-year-old start-up is also developing its own autonomous driving capabilities and has been hiring significantly in this area.

1. ByteDance

Global headcount: 50,000 Headquarters: Beijing ByteDance, which earlier this year was ranked by LinkedIn as one of the best companies to work for in China, also tops the charts for the country’s best start-up. The internet technology business has seen rapid growth in its seven years and now boasts a 50,000-strong workforce and several content platforms including news site Toutiao (meaning headlines) and video-sharing app TikTok. Increasingly, the company is focused on using machine-learning technology to tailor their product to audience’s interests, and is hiring in this regard.


Company: cnbc, Activity: cnbc, Date: 2019-09-04  Authors: karen gilchrist
Keywords: news, cnbc, companies, chinas, headcount, shanghai, beijing, business, headquarters, work, linkedin, company, intelligence, technology, according, startups, best, startup, artificial


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Growing nationalism in China could embolden Xi Jinping, says ex-US ambassador

A sense of nationalism is growing in China, and that could bolster support for those hoping to wait out the trade dispute with the U.S., said Max Baucus, a former American ambassador to China. They’re going to try to hang in there, waiting for President (Donald) Trump to come to them,” he told CNBC on Monday. “There’s a feeling that nationalism is getting a little stronger … I think that’s also emboldening President Xi,” said Baucus, who served as ambassador to China from February 2014 to Januar


A sense of nationalism is growing in China, and that could bolster support for those hoping to wait out the trade dispute with the U.S., said Max Baucus, a former American ambassador to China. They’re going to try to hang in there, waiting for President (Donald) Trump to come to them,” he told CNBC on Monday. “There’s a feeling that nationalism is getting a little stronger … I think that’s also emboldening President Xi,” said Baucus, who served as ambassador to China from February 2014 to Januar
Growing nationalism in China could embolden Xi Jinping, says ex-US ambassador Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: weizhen tan
Keywords: news, cnbc, companies, ambassador, growing, embolden, chinese, mind, baucus, president, wait, exus, china, trade, chinas, jinping, nationalism, economy, trump


Growing nationalism in China could embolden Xi Jinping, says ex-US ambassador

A sense of nationalism is growing in China, and that could bolster support for those hoping to wait out the trade dispute with the U.S., said Max Baucus, a former American ambassador to China. “Don’t forget … Chinese (are) very patient historically, they’ll wait it out, they’ll play lots of different angles. They’re going to try to hang in there, waiting for President (Donald) Trump to come to them,” he told CNBC on Monday. “There’s a feeling that nationalism is getting a little stronger … I think that’s also emboldening President Xi,” said Baucus, who served as ambassador to China from February 2014 to January 2017, under former President Barack Obama’s administration.

The Chinese are afraid to reach a deal with this president — it may not last, they can’t count on it, he might change his mind again. Max Baucus former American ambassador to China

In fact, the sentiment on the ground in China is that Beijing could be in it “for the long haul,” he said. “The Chinese (are) beginning to want to wait out Trump,” said Baucus. He added that China might be perceiving that the U.S. is in a weaker position — its economy might be worse than current indications, and American farmers appear to be taking a big hit from the tariffs. China on Sunday imposed additional duties on certain U.S. goods on a $75-billion target list, while U.S. tariffs on $112 billion of Chinese imports also took effect the same day.

Unpredictable Trump

There are also trust issues between the two sides as Beijing perceives Trump as unpredictable, said Baucus. “From China’s perspective, China … has a hard time trusting President Trump, who keeps changing his mind. He pulls out the rug from under his negotiators … The Chinese are afraid to reach a deal with this president — it may not last, they can’t count on it, he might change his mind again,” Baucus said. “If there’s another administration, they think it might be better in the sense that it’d be more predictable, there’d be less uncertainty. It’d be more standard negotiations,” he continued. U.S. presidential elections are slated to take place in November 2020, with much debate on whether both parties would come to an agreement before the polls.

Earlier this month, Baucus told CNBC that China “can withstand more pain” than the Americans. His recent comments echoed the sentiment of other analysts, who have said China’s best option is to play the long game — by tapping the power of its domestic economy rather than depending on external trade. The decline in exports — a result of the trade war — hasn’t made much of a dent in China’s gross domestic product growth, they said. On the other hand, the country’s consumption is increasingly contributing to its economy, they added.

Ahead of 70th anniversary


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: weizhen tan
Keywords: news, cnbc, companies, ambassador, growing, embolden, chinese, mind, baucus, president, wait, exus, china, trade, chinas, jinping, nationalism, economy, trump


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Trump was so angry after China’s trade retaliation that he wanted to double tariffs

President Donald Trump awaits the arrival of Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani at the White House in Washington, July 9, 2019. President Donald Trump wanted to double tariff rates on Chinese goods last month after Beijing’s latest retaliation in a boiling trade war before settling on a smaller increase, three sources told CNBC. His initial reaction, communicated to aides on a White House trade call held that day, was to suggest doubling existing tariffs, according to three people brie


President Donald Trump awaits the arrival of Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani at the White House in Washington, July 9, 2019. President Donald Trump wanted to double tariff rates on Chinese goods last month after Beijing’s latest retaliation in a boiling trade war before settling on a smaller increase, three sources told CNBC. His initial reaction, communicated to aides on a White House trade call held that day, was to suggest doubling existing tariffs, according to three people brie
Trump was so angry after China’s trade retaliation that he wanted to double tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: kayla tausche jacob pramuk, kayla tausche, jacob pramuk
Keywords: news, cnbc, companies, tariffs, house, trade, rates, secretary, retaliation, washington, tariff, wanted, chinas, president, double, angry, trump, white


Trump was so angry after China's trade retaliation that he wanted to double tariffs

President Donald Trump awaits the arrival of Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani at the White House in Washington, July 9, 2019.

President Donald Trump wanted to double tariff rates on Chinese goods last month after Beijing’s latest retaliation in a boiling trade war before settling on a smaller increase, three sources told CNBC.

The president was outraged after he learned Aug. 23 that China had formalized plans to slap duties on $75 billion in U.S. products in response to new tariffs from Washington on Sept. 1. His initial reaction, communicated to aides on a White House trade call held that day, was to suggest doubling existing tariffs, according to three people briefed on the matter.

Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer then enlisted multiple CEOs to call the president and warn him about the impact such a move would have on the stock market and the economy.

He settled on a 5% hike in tariff rates on about $550 billion in Chinese products, which he announced in an Aug. 23 tweet after the market close.

In the following days, both Mnuchin and White House press secretary Stephanie Grisham said Trump’s only regret was not raising tariffs higher.


Company: cnbc, Activity: cnbc, Date: 2019-09-03  Authors: kayla tausche jacob pramuk, kayla tausche, jacob pramuk
Keywords: news, cnbc, companies, tariffs, house, trade, rates, secretary, retaliation, washington, tariff, wanted, chinas, president, double, angry, trump, white


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China’s factory activity unexpectedly expands in August, a private survey shows

This photo taken on October 17, 2018 shows a worker inspecting shoes at a factory in Qingdao in China’s eastern Shandong province. China’s manufacturing activity expanded in August, according to results of a private survey released on Monday as production increased, but export sales fell amid the country’s escalating trade war with the U.S. The Caixin/Markit manufacturing PMI was 49.9 in July. The results of the private survey came after official data showed the manufacturing PMI fell to 49.5 in


This photo taken on October 17, 2018 shows a worker inspecting shoes at a factory in Qingdao in China’s eastern Shandong province. China’s manufacturing activity expanded in August, according to results of a private survey released on Monday as production increased, but export sales fell amid the country’s escalating trade war with the U.S. The Caixin/Markit manufacturing PMI was 49.9 in July. The results of the private survey came after official data showed the manufacturing PMI fell to 49.5 in
China’s factory activity unexpectedly expands in August, a private survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: huileng tan
Keywords: news, cnbc, companies, shows, trade, manufacturing, amid, fell, factory, pmi, official, chinas, activity, demand, analysts, survey, data, unexpectedly, expands, private


China's factory activity unexpectedly expands in August, a private survey shows

This photo taken on October 17, 2018 shows a worker inspecting shoes at a factory in Qingdao in China’s eastern Shandong province.

China’s manufacturing activity expanded in August, according to results of a private survey released on Monday as production increased, but export sales fell amid the country’s escalating trade war with the U.S.

The Caixin/Markit factory Purchasing Managers’ Index (PMI) was 50.4 in August — better than than the 49.8 analysts polled by Reuters had expected. The Caixin/Markit manufacturing PMI was 49.9 in July.

PMI readings above 50 indicate expansion, while those below that signal contraction.

The subindex for new orders stayed in expansionary territory in August, but inched down from July, suggesting flat demand for manufactured products, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.

However, “the gauge for new export orders remained in contractionary territory and fell to the lowest level this year in August, reflecting declining foreign demand amid an intensifying trade dispute between China and the U.S., ” Zhong said in a press release.

The two countries imposed new tariffs on each other’s imports on Sunday.

Despite the improved headline PMI reading in August, due in part to improved production activity, the outlook is not rosy with long-term downward pressure, said Zhong.

“Overall demand didn’t improve, and foreign demand declined notably, leading product inventories to grow,” he wrote. “There was no sign of an improvement in companies’ willingness to replenish inventories of inputs or in their confidence. Industrial prices trended down.”

The results of the private survey came after official data showed the manufacturing PMI fell to 49.5 in August, China’s National Bureau of Statistics said on Saturday — that’s compared to 49.7 in July. A Reuters poll showed analysts expected the official PMI to stay unchanged from July.

The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator features a bigger mix of small- and medium-sized firms.

The PMI is a survey of how businesses view the operating environment. Such data offer a first glimpse into what’s happening in an economy, as they are usually among the first major economic indicators released each month.

The China PMI is closely watched by global investors for signs of trouble amid a domestic economic slowdown and the ongoing U.S.-China trade dispute.

Uncertainty looms over the Chinese growth outlook, said Capital Economics analysts on Monday.

“Global demand looks set to weaken further and a long-overdue pull-back in property construction is getting under way,” they wrote in a note following the PMI data release.

“The fiscal support currently in the pipeline is unlikely to fully offset these headwinds and we think authorities will have little choice but to roll out further policy easing measures in the coming months,” added Julian Evans-Pritchard and Martin Lynge Rasmussen.

— CNBC’s Yen Nee Lee and Reuters contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-09-02  Authors: huileng tan
Keywords: news, cnbc, companies, shows, trade, manufacturing, amid, fell, factory, pmi, official, chinas, activity, demand, analysts, survey, data, unexpectedly, expands, private


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China’s gas demand growth rate to slow in 2019, government report shows

President Trump ordered US firms to ditch China, but many already…President Trump rattled Wall Street when he demanded U.S. firms move production out of China. But some have already taken steps to do so, and, in earnings calls over the past… Investingread more


President Trump ordered US firms to ditch China, but many already…President Trump rattled Wall Street when he demanded U.S. firms move production out of China. But some have already taken steps to do so, and, in earnings calls over the past… Investingread more
China’s gas demand growth rate to slow in 2019, government report shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-02
Keywords: news, cnbc, companies, shows, report, growth, rate, wall, steps, slow, chinas, rattled, gas, demand, 2019, firms, production, trump, china, taken, president, street


China's gas demand growth rate to slow in 2019, government report shows

President Trump ordered US firms to ditch China, but many already…

President Trump rattled Wall Street when he demanded U.S. firms move production out of China. But some have already taken steps to do so, and, in earnings calls over the past…

Investing

read more


Company: cnbc, Activity: cnbc, Date: 2019-09-02
Keywords: news, cnbc, companies, shows, report, growth, rate, wall, steps, slow, chinas, rattled, gas, demand, 2019, firms, production, trump, china, taken, president, street


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