So, what did Xi say about China’s open policy door opening even wider? … and it’s only the beginning!
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| FILE: China's President Xi Jinping and US President Donald Trump attend a welcome ceremony at the Great Hall of the People in Beijing on 9 November 2017. Picture: AFP. WHAT A US-CHINA TRADE WAR COULD MEAN FOR WORLD As Christine Lagarde, the International Monetary Fund director, has warned: the world trade order ‘is now in danger of being torn apart’. World Economic Forum | 9 minutes ago Economic acrimony has been bubbling between the US and China since Donald Trump became president. Now the tensions have boiled over into escalating tit-for-tat announcements of tariffs on key imports. This is serious not just for the US and China, but for the entire global economy and the UK as it hopes for a free trade Brexit. As Christine Lagarde, the International Monetary Fund director, has warned: the world trade order “is now in danger of being torn apart”. Anyone familiar with Trump’s zero-sum approach to international trade won’t be surprised by the turmoil. Although few might have predicted a US president assailing the free trade model, while the Communist leader of China rides to its defence … for more, go to http://ewn.co.za/2018/04/25/what-a-us-china-trade-war-could-mean-for-world |
So, what did Xi say about China’s open policy door opening even wider? … and it’s only the beginning!
KUALA LUMPUR (April 2018): At the recently concluded Boao summit, President Xi Jinping said China's open policy door is to open even wider for business and trade.
Then came this Bloomberg news dated yesterday (April 25) titled “China lifts quota for outbound investment trials to US$10b”.
Like what I Love Malaysia-China Silk Road posted earlier the same day, Xi and China are not known to engage in rhetoric. (Read this for context: https://ilovemalaysiachinasilkroad.blogspot.my/2018/04/chinas-open-policy-door-to-open-even.html - China's open policy door to open even wider for business and trade, says Xi, with video clip)
Whether or not there is a US-China global trade war haunting the rest of the world, China will continue to help boost trans border business and trade.
And, this, despite the latest news report that President Donald Trump is looking to impose tariffs of up to US$100 billion more on Chinese goods.
Both the US and China have, to date, imposed some US$50 billion tariffs on each others goods.
It thus makes a world of sense that whatever the sanction and tariff slapping Trump do, China will open its economic door even wider to do business and trade with the rest of the world.
That’s what free trade is all about, and ironically, Trump and the US are abandoning what it used to promote or profess.
Whatever, Xi and China cannot, and it is impossible to, abandon what it started - the multi-trillion-dollar Belt Road Initiative (BRI).
Some 69 cities and nations have already signed agreements with China to help develop BRI, and most of the construction projects are already ongoing.
And, was it really any surprise China failed to get India's support for its ambitious BRI infrastructure projects at the end of a foreign ministers' meeting of a major security bloc on Tuesday (also April 25).
Well, that is only India’s loss. India is pro-US and can also be considered a US ally.
BRI is not going to collapse just because of India which is now bogged down by domestic economic and political woes.
Here are the two stories for the details:
"China lifts quota for outbound investment trials to US$10b
ECONOMY
Wednesday, 25 Apr 2018
12:02 PM MYT
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The State Administration of Foreign Exchange boosted the Qualified Domestic Limited Partnership and Qualified Domestic Investment Enterprise trial programs in the two cities to $5 billion each, the currency regulator said late Tuesday. SAFE raised the quota from $2 billion for the QDLP program in Shanghai and $2.5 billion for QDIE in Shenzhen, according to a note from United Overseas Bank Ltd.
“In recent months, Chinese authorities have stepped up efforts to grow the two-way flow of both inbound and outbound investments in their on-going effort to further liberalize China’s financial markets and open up China’s capital account,” UOB said.
China’s leaders unveiled a series of steps earlier this month aimed at opening their financial system and more fully integrating into global capital markets. Foreign firms are watching to see whether People’s Bank of China Governor Yi Gang was serious in his pledge to move quickly to level the playing field with domestic financial companies.
“This opens the door for some meaningful capital outflow, which should partly balance portfolio inflows into the mainland bond market,” said Samsara Wang, an emerging markets strategist at Credit Agricole CIB. “The news is modestly renminbi negative as the amounts are greater than expected, the timing is faster.”
BNP Paribas SA’s asset management arm is among those approved for the QDLP program. Several institutions, including JPMorgan Asset Management, were reported to have been granted QDLP quotas last month. - Bloomberg/The Star Online
China fails to get Indian support for Belt and Road ahead of summit
WORLD
Tuesday, 24 Apr 2018
6:54 PM MYT
By ben blanchard
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The Belt and Road is Chinese President Xi Jinping's landmark scheme to build infrastructure to connect China to the rest of Asia and beyond, a giant reworking of its old Silk Road.
India has not signed up to the initiative as parts of one key project, the $57 billion China-Pakistan Economic Corridor, runs through Pakistan-administered Kashmir that India considers its own territory.
Whether or not China will be able to bring India round to Belt and Road will likely be a key measure of the success of Indian Prime Minister Narendra Modi's trip to China to meet Xi for an informal meeting on Friday and Saturday.
But India's foreign minister did not express support for Belt and Road in the communique released after foreign ministers of the China and Russia-led Shanghai Cooperation Organisation met in Beijing.
India, along with Pakistan, joined the group last year.
All the other foreign ministers - from Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan - "reaffirmed support for China's Belt and Road proposal", the statement read.
It gave no further explanation.
The communique otherwise was a broad expression of unity by the ministers on issues ranging from their support for the Iran nuclear deal to the need to combat the spread of extremism.
Modi is coming to China as efforts at rapprochement gather pace following a difficult year in ties between the two neighbours.
The Asian giants were locked in a 73-day military stand-off in a remote, high-altitude stretch of their Himalayan border last year. At one point, soldiers from the two sides threw stones and punches.
The confrontation between the nuclear-armed powers underscored Indian alarm at China's expanding security and economic links in South Asia.
In comments carried on the foreign ministry's website, Chinese Vice Foreign Minister Kong Xuanyou said holding the meeting in an informal way meant the two leaders could have a deep exchange of views in a relaxed, friendly atmosphere to promote cooperation.
"This not only will benefit the two countries and two peoples, but will also have an important effect on peaceful development in the region and around the world," the ministry paraphrased Kong as telling Indian media in Beijing.
Modi will visit China in June for a summit of the Shanghai Cooperation Organisation.
China will also have to tread carefully to avoid giving its close ally Pakistan cause for alarm. China on Monday reassured Pakistan that relations between the two countries were as firm as ever and would "never rust".
(Reporting by Ben Blanchard; Editing by Nick Macfie) - The Star Online"
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| Donald Trump says the US will hold trade talks with China. Photograph: Joe Raedle/Getty Images Trump sending treasury secretary to China as trade tensions mount President reiterates plan to impose tariffs of up to $100bn more on Chinese goods Agencies Wed 25 Apr 2018 05.47 BSTFirst published on Wed 25 Apr 2018 01.13 BST Donald Trump has said he is sending treasury secretary Steven Mnuchin to China for talks as the two countries deal with tensions over trade and intellectual property. Trump said during a White House news conference with President Emmanuel Macron of France that the US and China were “very serious” about trade issues and reiterated his plans to impose tariffs of up to $100bn more on Chinese goods. “We’ve put on very substantial tariffs and that will continue unless we make a trade deal. I think we’ve got a very good chance of making a deal,” Trump said.The US and China have moved to the brink of the most consequential trade dispute since the second world war. Both countries have proposed tariffs of $50bn on each other’s products; Trump is looking to impose tariffs up to $100bn more on Chinese goods … for more, go to https://www.theguardian.com/us-news/2018/apr/25/trump-sending-treasury-secretary-to-china-as-trade-tensions-mount |
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