Trump can use these powers to pressure US companies to leave China

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty ImagesHours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with


President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty ImagesHours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with
Trump can use these powers to pressure US companies to leave China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-24
Keywords: news, cnbc, companies, emergency, china, chinese, leave, international, pressure, law, legal, companies, trump, tariffs, president, powers


Trump can use these powers to pressure US companies to leave China

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty Images

Hours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with $140 billion Chinese companies have invested in the United States, according to estimates by the Rhodium Group research institute. Some U.S. companies had been shifting operations out of China even before the tit-for-tat tariff trade war began more than a year ago. But winding down operations and shifting production out of China completely would take time. Further, many U.S. companies such as those in the aerospace, services and retail sectors would be sure to resist pressure to leave a market that is not only huge but growing. Unlike China, the United States does not have a centrally planned economy. So what legal action can the president take to compel American companies to do his bidding? Trump does have some powerful tools that would not require approval from U.S. Congress:

More tariffs

Trump could do more of what he’s already doing, that is hiking tariffs to squeeze company profits enough for them to make it no longer worth their while to operate out of China. Trump on Friday boosted by 5 percentage points the 25% tariffs already in place on nearly $250 billion of Chinese imports, including raw materials, machinery, and finished goods, with the new higher 30% rate to take effect on Oct. 1. He said planned 10% tariffs on about $300 billion worth of additional Chinese-made consumer goods would be raised to 15%, with those measures set to take effect on Sept. 1 and Dec. 15. In addition to making it more expensive to buy components from Chinese suppliers, tariff hikes punish U.S. firms that manufacture goods through joint ventures in China.

“National Emergency”

Trump could treat China more like Iran and order sanctions, which would involve declaring a national emergency under a 1977 law called the International Emergency Economic Powers Act, or IEEPA. Once an emergency is declared, the law gives Trump broad authority to block the activities of individual companies or even entire economic sectors, former federal officials and legal experts said. For example, by stating that Chinese theft of U.S. companies’ intellectual property constitutes a national emergency, Trump could order U.S. companies to avoid certain transactions, such as buying Chinese technology products, said Tim Meyer, director of the International Legal Studies Program at Vanderbilt Law School in Nashville. Trump used a similar strategy earlier this year when he said illegal immigration was an emergency and threatened to put tariffs on all Mexican imports. Past presidents have invoked IEEPA to freeze the assets of foreign governments, such as when former President Jimmy Carter in 1979 blocked assets owned by the Iranian government from passing through the U.S. financial system. “The IEEPA framework is broad enough to do something blunt,” said Meyer. Using it could risk unintended harm to the U.S. economy, said Peter Harrell, a former senior State Department official responsible for sanctions, now at the Center for a New American Security. U.S. officials would need to weigh the impact of China’s likely retaliation and how U.S. companies would be affected. Invoking IEEPA could also trigger legal challenges in U.S. courts, said Mark Wu, a professor of international trade at Harvard Law School.

Federal procurement curbs

Another option that would not require congressional action would be to ban U.S. companies from competing for federal contracts if they also have operations in China, said Bill Reinsch, a senior adviser at the Center for Strategic and International Studies think tank. Such a measure might be targeted specifically at certain sectors since a blanket order would hit companies such as Boeing (BA.N), which is both a key weapons maker for the Pentagon and the top U.S. exporter. Boeing opened its first completion plant for 737 airliners in China in December, a strategic investment aimed at building a sales lead over its European arch-rival Airbus (AIR.PA). Boeing and Airbus have been expanding their footprint in China as they vie for orders in the country’s fast-growing aviation market, which is expected to overtake the United States as the world’s largest in the next decade.

1917 Trading with the Enemy Act


Company: cnbc, Activity: cnbc, Date: 2019-08-24
Keywords: news, cnbc, companies, emergency, china, chinese, leave, international, pressure, law, legal, companies, trump, tariffs, president, powers


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Pompeo says the US message on Huawei is clear. Trump’s words say otherwise

U.S. Secretary of State Mike Pompeo said this week the U.S. has been very clear about its stance toward Chinese telecommunications giant Huawei. “No mixed messages, not at all,” Pompeo told CNBC earlier this week. “The threat of having Chinese telecom systems inside of American networks or inside of networks around the world presents an enormous risk — a national security risk. Our mission set is to find a way to reduce that risk, to take that risk down as much as we possibly can,” he said. The


U.S. Secretary of State Mike Pompeo said this week the U.S. has been very clear about its stance toward Chinese telecommunications giant Huawei. “No mixed messages, not at all,” Pompeo told CNBC earlier this week. “The threat of having Chinese telecom systems inside of American networks or inside of networks around the world presents an enormous risk — a national security risk. Our mission set is to find a way to reduce that risk, to take that risk down as much as we possibly can,” he said. The
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Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: arjun kharpal
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Pompeo says the US message on Huawei is clear. Trump's words say otherwise

U.S. Secretary of State Mike Pompeo said this week the U.S. has been very clear about its stance toward Chinese telecommunications giant Huawei.

“No mixed messages, not at all,” Pompeo told CNBC earlier this week. “President Trump has been unambiguous. I don’t think there’s a mixed message at all.”

“The threat of having Chinese telecom systems inside of American networks or inside of networks around the world presents an enormous risk — a national security risk. Our mission set is to find a way to reduce that risk, to take that risk down as much as we possibly can,” he said.

The U.S. has said Huawei is a risk because its equipment could be used as a backdoor by the Chinese government to carry out espionage — allegations the network equipment maker has consistently denied.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: arjun kharpal
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In a bad sign for trade talks, Trump deploys a new label for China’s Xi – ‘enemy’

Chinese President Xi Jinping and U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017. Even as trade tensions continued to heat up, President Donald Trump would make sure to refer to China’s president, Xi Jinping, as his “friend.” On Friday, though, Trump unveiled a new label for his Chinese counterpart: “enemy.” “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” Trump also said Friday that he had “hereby ord


Chinese President Xi Jinping and U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017. Even as trade tensions continued to heat up, President Donald Trump would make sure to refer to China’s president, Xi Jinping, as his “friend.” On Friday, though, Trump unveiled a new label for his Chinese counterpart: “enemy.” “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” Trump also said Friday that he had “hereby ord
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Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: tucker higgins
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In a bad sign for trade talks, Trump deploys a new label for China's Xi – 'enemy'

Chinese President Xi Jinping and U.S. President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on November 9, 2017.

Even as trade tensions continued to heat up, President Donald Trump would make sure to refer to China’s president, Xi Jinping, as his “friend.” On Friday, though, Trump unveiled a new label for his Chinese counterpart: “enemy.”

In one of a series of tweets that rattled markets, the president posed a question to his more than 60 million followers comparing Xi to Federal Reserve Chairman Jerome Powell.

“My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” Trump wrote.

The tweet came shortly after China announced that it will impose 5%-10% tariffs on $75 billion worth of U.S. goods and reinstate duties on American autos. The tariffs will come in two batches, on Sept. 1 and Dec. 15, which are the same days that Trump’s newest round of tariffs on Chinese goods will go into effect.

The S&P 500 index of large publicly traded companies was down about 1.8% Friday morning after briefly going positive. Trump also said Friday that he had “hereby ordered” U.S. firms to seek an “alternative ” to China.

At first blush, Trump’s comment was striking not for its slam on the communist leader, but for the critique of the American central bank chairman whom Trump himself appointed.

But it also suggests that the president’s personal relationship with Xi, which Trump has touted as the best route to completing a major trade deal uniting the world’s two largest economies, is at a low point.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: tucker higgins
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‘I am the Chosen One,’ Trump proclaims as he defends trade war with China

President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war. “This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House. Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chin


President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war. “This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House. Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chin
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger
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'I am the Chosen One,' Trump proclaims as he defends trade war with China

President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war.

The president’s self-aggrandizing remark followed a string of criticisms aimed at his predecessors, whom he claimed had ignored China’s alleged malpractice on trade.

“This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House.

“Somebody had to do it,” the president said. He added, while looking to the heavens: “I am the Chosen One.”

Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? We’re winning.”

“I was put here by people,” the president said. “I was put here by people to do a great job. And that’s what I’m doing.”

Earlier Wednesday, Trump retweeted a right-wing pundit’s flattering, messiah-flavored comments about the president’s support in Israel.

“The Jewish people in Israel love him like he’s the King of Israel. They love him like he is the second coming of God,” said that supporter, Wayne Allyn Root.

The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chinese imports. Trump has already imposed 25% tariffs on roughly $250 billion in Chinese goods, and has vowed to apply 10% duties to about all remaining Chinese imports by mid-December.

Some of those tariffs will go into effect Sept. 1, while other were recently delayed until Dec. 15 to avoid harming U.S. consumers during the holiday season.

Beijing has retaliated by taxing about $110 billion in U.S. imports, and more recently by announcing that it would no longer buy U.S. agriculture products.

Trump spoke before traveling to Kentucky, where he was scheduled to speak at a convention for U.S. veterans.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger
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Trump’s tariffs on Chinese products might impact your Christmas shopping budget after all

The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bit


The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bit
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: megan leonhardt
Keywords: news, cnbc, companies, goods, tariffs, chinese, items, impact, holiday, trump, china, shopping, trumps, christmas, administration, budget, product, products


Trump's tariffs on Chinese products might impact your Christmas shopping budget after all

With Trump’s trade war with China set to start impacting consumer goods in early September, experts say it may pay to start your holiday shopping earlier than usual this year. The Trump administration announced on Aug. 1, that it planned to levy tariffs of 10% on over $300 billion of Chinese imports. However, a little more than a week later, the administration changed course, delaying tariffs on electronics such as smartphones, video game consoles, as well as some clothing and toys, until December. “We’re doing this for the Christmas season,” President Donald Trump told reporters on Aug. 13. “Just in case some of the tariffs would have an impact on U.S. customers.” Tariffs are taxes are paid by the importer, not the country exporting the product. The Trump administration has introduced the tariffs in an effort to bring China to the negotiation table after claiming the country has unfair trade practices that hurt U.S. manufacturing. But many times, it’s the consumer who’s stuck paying a higher price for a product — an issue that President Trump tacitly acknowledged when his administration decided to delay the tariffs on popular holiday gift items. Once a tariff is imposed, businesses have a few options. They can pass on the tax to consumers by charging higher prices, they can eat the difference to stay competitive or they can push back on the supplier to lower the base cost of the product to account for the new taxes. In some cases, companies may even switch to a non-Chinese supplier.

What items could see price hikes

While some electronics and toys may be spared for now, the list of goods that will be impacted by the Sep. 1 tariffs still spans 122 pages and ranges from everyday grocery items like milk and tomatoes to household staples like diapers and soap, and even products like alarm clocks and sports equipment (and yes, that includes skis). With such a wide range of products in play and uncertainty around how retailers will respond, it’s hard to predict exactly how much these tariffs will affect the everyday shopper. Yet the two areas where you will most likely see price increases are on clothing and footwear, says William Reinsch, senior advisor at the Center for Strategic and International Studies and contributor to The Trade Guys podcast. Last year, over 40% of all clothing and almost 70% of the footwear sold in the U.S. was imported from China, according to the American Apparel & Footwear Association. And while Trump says the delay of some tariffs is meant to protect holiday shoppers, the Association says many common Christmas items and decor still fall under the September round of tariffs, including holiday stockings. Another area that may take a hit is your grocery budget. A “considerable amount” of the food we buy at supermarkets, for example, is connected to Chinese suppliers, says Phil Lempert, a food industry analyst and editor of SupermarketGuru. The product on the shelf may not come directly from China, but Chinese companies supply ingredients used to create many food items.

The effect on consumers

JP Morgan analysts estimate the direct and indirect effect of tariffs could end up costing American families an average of $1,000 this year. That’s up from the $600 additional costs financial analysts previously predicted would hit Americans after the White House upped the tariff rate on non-consumer goods to 25% in May. While the administration could provide farmers and the agricultural industry subsidies to offset the tariffs levied earlier this year, “there is no simple way to compensate consumers,” Dubravko Lakos-Bujas, JP Morgan’s head of U.S. equity strategy, wrote in a note to clients. “The people who will be hit the hardest [by the tariffs] are poor people,” Reinsch tells CNBC Make It. Consumers with lower incomes tend to shop at budget retailers such as dollar stores and big box chains — which source a lot of products from China. And simply avoiding products with labels saying ‘Made in China’ may not help, since many items on the shelves have ingredients or parts that originated in China, even if the final product was manufactured elsewhere. It will, however, take a while for the full effect of the tariffs to kick in, Reinsch says. That’s because many of the products that will be on shelves in September and October are already in the U.S. “On Sept. 2, if you go shopping, you may not notice a big difference unless the retailer decides to take advantage of the situation and raise prices prematurely and blame it on Trump,” he says. As you get closer to Christmas, these latest tariffs on Chinese goods are likely going to “bite more,” he adds, saying budget-conscious shoppers may want to start some of their holiday shopping early to avoid paying a premium. Don’t miss: Trump increased tariffs on more Chinese products to 25%—here’s what could get more expensive Like this story? Subscribe to CNBC Make It on YouTube!


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: megan leonhardt
Keywords: news, cnbc, companies, goods, tariffs, chinese, items, impact, holiday, trump, china, shopping, trumps, christmas, administration, budget, product, products


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Apple is turning to a Chinese firm for premium iPhone screens, report says

A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China. Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei. The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported. The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over wh


A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China. Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei. The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported. The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over wh
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Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: ryan browne
Keywords: news, cnbc, companies, turning, iphone, apple, unveil, premium, company, xr, xs, firm, screens, chinese, models, displays, nikkei, tech, report


Apple is turning to a Chinese firm for premium iPhone screens, report says

A Chinese man holds his son as they look at iPhones on display at an Apple store on January 7, 2019 in Beijing, China.

Apple is in the final stages of certifying premium smartphone displays from Chinese tech firm BOE Technology Group for the iPhone, according to a report from the Nikkei.

The Nikkei, citing sources, said that Apple was “aggressively testing” BOE’s flexible organic light-emitting diode (OLED) displays, adding the company would decide by the end of the year whether to take the company on as a supplier of the panels.

The move is aimed at cutting costs and reducing Apple’s reliance on Samsung, the Nikkei reported.

The U.S. tech giant is expected to unveil its new flagship phones in September, and speculation has grown over what Apple will bring to the table with the latest models. Last year, the company brought out three new models, the XS, XS Max and XR.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: ryan browne
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Huawei calls US move to blacklist more affiliates ‘unjust’ and ‘politically motivated’

However, the Bureau of Industry and Security also added another 46 Huawei affiliates onto the blacklist. So to us, the entity list will be there for quite some time,” he said. In a statement on Tuesday, Huawei called Washington’s decision to add more of its affiliates to the Entity List “politically motivated.” “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership,” Huawei said. “We call on the US government to put an end to this unjust treatment a


However, the Bureau of Industry and Security also added another 46 Huawei affiliates onto the blacklist. So to us, the entity list will be there for quite some time,” he said. In a statement on Tuesday, Huawei called Washington’s decision to add more of its affiliates to the Entity List “politically motivated.” “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership,” Huawei said. “We call on the US government to put an end to this unjust treatment a
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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: arjun kharpal
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Huawei calls US move to blacklist more affiliates 'unjust' and 'politically motivated'

The U.S. government’s decision to add more of Huawei’s affiliates to a blacklist is “unjust” and “politically motivated” and will not help the country advance its technological leadership, the Chinese telecommunications giant said Tuesday. U.S. Commerce Secretary Wilbur Ross announced Monday that it was extending by another 90 days a temporary reprieve for Huawei to continue doing business with American companies. The deadline had lapsed on Monday. However, the Bureau of Industry and Security also added another 46 Huawei affiliates onto the blacklist. “These actions violate the basic principles of free market competition. They are in no one’s interests, including U.S. companies,” Huawei said in a statement. In May, Huawei was put on the U.S. Entity List, which restricts American firms from doing business with the Chinese company. Shortly after, Washington offered a 90-day reprieve for Huawei, allowing U.S. businesses to continue selling limited and specific products to the Chinese telecom. “As we continue to urge consumers to transition away from Huawei’s products, we recognize that more time is necessary to prevent any disruption,” Ross said in a statement.

Some American rural mobile networks use Huawei gear while some U.S. technology component companies rely on a significant portion of revenue from the Chinese giant. Ross reiterated his concern that Huawei poses a national security threat. The U.S. has maintained that Huawei’s equipment could be used as a backdoor by the Chinese government to spy on Americans, allegations the company has repeatedly denied.

‘Unjust’

Speaking to The Associated Press, Huawei founder Ren Zhengfei said Tuesday he expects no relief from Washington and his company was making plans as if American export restrictions will not go away. “Right now, attacking Huawei in the United States is politically correct, while helping Huawei even once would put them under significant pressure. So to us, the entity list will be there for quite some time,” he said. In a statement on Tuesday, Huawei called Washington’s decision to add more of its affiliates to the Entity List “politically motivated.” “Attempts to suppress Huawei’s business won’t help the United States achieve technological leadership,” Huawei said. “We call on the US government to put an end to this unjust treatment and remove Huawei from the Entity List.” The company added that the decision “won’t have a substantial impact” on business. Huawei Chairman Liang Hua said that “neither production nor shipment has been interrupted, not for one single day.” Still, earlier this year, Huawei slashed its revenue forecast and predicted a $30 billion hit to its revenues over the next two years.

It’s clear to me at least, that the president views Huawei as a bargaining chip and a pressure point for a trade deal. James Pethokoukis Fellow at the American Enterprise Institute

Huawei has been focusing on trying to develop more of the core technology that had been provided by U.S. companies. The telecom equipment maker is continuing to design its own processors and modems for smartphones. It also recently released its own operating system called HarmonyOS, even though it currently uses Google’s Android for its smartphones and Microsoft’s Windows for laptops. Richard Yu, CEO of Huawei’s consumer business, said last week that if the company is permanently cut off from Google, it could switch to the new operating system “immediately.”

Huawei a ‘bargaining chip’

Huawei has been caught up in the broader U.S.-China trade war. President Donald Trump has sent mixed signals over the last few months about the fate of Huawei in the U.S. In May, Trump said that it was “possible that Huawei would be included in a trade deal.” But just this weekend, he said he didn’t want to do business with Huawei “because it is a national security threat.” Some experts have suggested that the Chinese tech firm is being used as a “bargaining chip” in the U.S.-China trade war.

“It’s clear to me at least, that the president views Huawei as a bargaining chip and a pressure point for a trade deal. … There are certainly those in the administration that would like to kill this company and they view it as kind of an opening shot in a long-term cold war with China,” James Pethokoukis, Dewitt Wallace fellow at the American Enterprise Institute, told CNBC’s “The Exchange ” on Monday. “I just don’t see evidence that Trump thinks that.” “That’s the president’s problem,” Pethokoukis added. “If he’s calling it right now that they’re a national security issue, if that’s the case, then it’s hard to come to a trade deal that doesn’t involve some sort of limitation on Huawei. It’s hard to see the end game there.”


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: arjun kharpal
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China’s ability to spend on weapons has the Pentagon eager to develop hypersonics as the US tries to catch up

HUNTSVILLE, Ala. — China’s ability to quickly finance its military has the Pentagon especially eager to develop hypersonic weapons, amid a budding arms race between the world’s top two economies. “I think it’s clear that in the realm of hypersonics we are playing catch up, especially relative to the Chinese. We need to be able to not only match but to overmatch, especially the Chinese,” Griffin said. Read more: Russia and China are ‘aggressively developing’ hypersonic weaponsLast year, Russian P


HUNTSVILLE, Ala. — China’s ability to quickly finance its military has the Pentagon especially eager to develop hypersonic weapons, amid a budding arms race between the world’s top two economies. “I think it’s clear that in the realm of hypersonics we are playing catch up, especially relative to the Chinese. We need to be able to not only match but to overmatch, especially the Chinese,” Griffin said. Read more: Russia and China are ‘aggressively developing’ hypersonic weaponsLast year, Russian P
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Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: amanda macias
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China's ability to spend on weapons has the Pentagon eager to develop hypersonics as the US tries to catch up

Members of the People’s Liberation Army stand in formation during a flag raising ceremony in Hong Kong, China, on Sunday, June 30, 2019.

HUNTSVILLE, Ala. — China’s ability to quickly finance its military has the Pentagon especially eager to develop hypersonic weapons, amid a budding arms race between the world’s top two economies.

“China has a robust global economy, their ability to afford new offensive systems is quite significant, and we have to take note of that,” Mike Griffin, the Pentagon’s top engineer, told CNBC at the Space and Missile Defense Symposium in Huntsville.

“I think it’s clear that in the realm of hypersonics we are playing catch up, especially relative to the Chinese. We need to be able to not only match but to overmatch, especially the Chinese,” Griffin said.

The United States does not have a defense against hypersonic weapons, which can travel at least five times the speed of sound, or a little more than a mile per second. Combined with blistering speed, maneuverability and long-range flight, these weapons are difficult to track, target and defeat.

Russia and China have sprinted to develop a variety of weapons of this caliber, sparking concerns that the U.S. will be outpaced on this front.

“We are late to the game but, I will bet on U.S. innovation and resolve everyday against state-sponsored companies,” Griffin said, noting the Russian and Chinese efforts.

Read more: Russia and China are ‘aggressively developing’ hypersonic weapons

Last year, Russian President Vladimir Putin touted his nation’s growing hypersonic arsenal by unveiling a slew of new hypersonic weapons. Of the six new weapons Putin unveiled last March, CNBC learned that two of them, a hypersonic glide vehicle and air-launched cruise missile, will be ready for war by 2020.

The Kremlin, however, is having a hard time finding a source for the critical carbon fiber components needed to produce its hypersonic glide vehicle, according to people with direct knowledge of a U.S. intelligence report. At the time, Putin claimed the weapon was capable of reaching targets at a speed of 20 times the speed of sound and that it was already in serial production.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: amanda macias
Keywords: news, cnbc, companies, eager, hypersonics, putin, vehicle, speed, times, pentagon, catch, spend, ability, tries, especially, develop, hypersonic, griffin, weapons, chinese, china, chinas


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Here’s what new tariffs will cost the average American household

The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. This third tranche of duties affect consumer goods more than the previous levies did. Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. Despite the la


The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. This third tranche of duties affect consumer goods more than the previous levies did. Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. Despite the la
Here’s what new tariffs will cost the average American household Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, chinese, way, tariff, larger, tariffs, month, goods, impact, estimates, heres, consumer, household, average, cost, american


Here's what new tariffs will cost the average American household

The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan.

The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. The new tariffs are scheduled to begin Sept. 1 and in mid-December.

“What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods,” J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas said in a note to clients. “This suggests that the expected consumer impact should be larger in the latest round.”

President Donald Trump surprised investors earlier this month by ending a tariff ceasefire with China and announcing new tariffs of 10% on the remaining $300 billion in Chinese imports, starting next month. He later delayed some of the tariffs until Dec. 15. This third tranche of duties affect consumer goods more than the previous levies did.

Lakos-Bujas said unlike the agriculture sector, which is receiving subsidies from the government to offset some of the tariffs, “there is no simple way to compensate consumer.”

Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. In announcing his delay or cancellation of some of the tariffs, Trump said he wanted to avoid hurting the Christmas shopping season.

Despite the larger tariff impact, the U.S. consumer appears strong. July retail sales grew more than expected from June and posted the strongest five-month growth streak since 2005-2006. About 70% of economic activity is tied to consumer spending.

Given the larger impact on the wallet of the U.S. consumer going in the 2020 election, Lakos-Bujas said the administration will likely rollback tariffs or compromise on a trade agreement.

“We believe there is a good chance they end up reversing their decision and finding a way to reach some common ground with Chinese negotiators,” he said.

The firm estimates that Trump’s new tariffs will cost Americans the majority of the tax break they are getting from Trump’s 2017 tax overhaul, which it estimates is around $1,300 per year.

— with reporting from CNBC’s Michael Bloom


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, chinese, way, tariff, larger, tariffs, month, goods, impact, estimates, heres, consumer, household, average, cost, american


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US grants Huawei another 90 days to buy from American suppliers: Ross

Asked what will happen in November to U.S. companies, Ross said: “Everybody has had plenty of notice of it, there have been plenty of discussions with the president.” The U.S. government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests. Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional specia


Asked what will happen in November to U.S. companies, Ross said: “Everybody has had plenty of notice of it, there have been plenty of discussions with the president.” The U.S. government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests. Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional specia
US grants Huawei another 90 days to buy from American suppliers: Ross Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: spencer kimball
Keywords: news, cnbc, companies, grants, chinese, companies, american, commerce, 90, buy, company, told, wilbur, buying, telecommunications, suppliers, days, huawei, ross


US grants Huawei another 90 days to buy from American suppliers: Ross

Commerce Secretary Wilbur Ross (R) and other Trump Administration officials sit down with Chinese vice ministers and senior officials for trade negotiations in the Diplomatic Room at the Eisenhower Executive Office Building January 30, 2019 in Washington, DC.

U.S. Commerce Secretary Wilbur Ross said Monday the U.S. government will extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from U.S. companies so that it can service existing customers, even as nearly 50 of its units were being added to a U.S. economic blacklist.

The “temporary general license,” due to expire on Monday, will be extended for Huawei for 90 days, he told Fox Business Network Monday, confirming an expected decision first reported Friday by Reuters. He also said he was adding 46 Huawei affiliates to the Entity List, raising the total number to more than 100 Huawei entities that are covered by the restrictions.

Ross said the extension was to aid U.S. customers, many of which operate networks in rural America.

“We’re giving them a little more time to wean themselves off,” Ross said.

Shortly after blacklisting the company in May, the Commerce Department initially allowed Huawei to purchase some American-made goods in a move aimed at minimizing disruption for its customers.

Huawei did not immediately comment Monday.

The extension, through Nov. 19, renews an agreement continuing the Chinese company’s ability to maintain existing telecommunications networks and provide software updates to Huawei handsets.

Asked what will happen in November to U.S. companies, Ross said: “Everybody has had plenty of notice of it, there have been plenty of discussions with the president.”

When the Commerce Department blocked Huawei from buying U.S. goods earlier this year, it was seen as a major escalation in the Sino-U.S.trade war.

The U.S. government blacklisted Huawei, alleging the Chinese company is involved in activities contrary to national security or foreign policy interests.

As an example, the blacklisting order cited a pending federal criminal case concerning allegations Huawei violated U.S. sanctions against Iran. Huawei has pleaded not guilty in the case.

The order noted that the indictment also accused Huawei of deceptive and obstructive acts.

At the same time the United States says Huawei’s smartphones and network equipment could be used by China to spy on Americans, allegations the company has repeatedly denied.

Huawei, the world’s largest telecommunications equipment maker, is still prohibited from buying American parts and components to manufacture new products without additional special licenses.

Many Huawei suppliers have requested the special licenses to sell to the firm. Ross told reporters late last month he had received more than 50 applications, and that he expected to receive more. He said on Monday that there were no “specific licenses being granted for anything.”

Out of $70 billion that Huawei spent buying components in 2018, some $11 billion went to U.S. companies including Qualcomm, Intel, and Micron Technology. Intel declined to comment on Monday.


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: spencer kimball
Keywords: news, cnbc, companies, grants, chinese, companies, american, commerce, 90, buy, company, told, wilbur, buying, telecommunications, suppliers, days, huawei, ross


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