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Cutting Treasury debt must remain option for China

The US-China trade war has generated heated debate over whether China will weaponize its holdings of US Treasury debt by dumping these securities into the market. Efforts are needed to avoid this “nuclear option,” but that doesn't mean China won't pare back its Treasury debt portfolio. According to official data, the country has trimmed its ownership of US Treasury debt to a two-year low.
Source: Global Times | 2019/7/18 21:38:42

Vote-hungry attitude toward trade war with China can be US' Achilles' heel

The US-China trade war has lasted more than a year, only to see both sides take casualties. According to data released by China's General Administration of Customs last week, during the first half of 2019, China's exports to the US fell by 8.1 percent year-on-year to $199.4 billion, while imports plunged 29.9 percent to $58.92 billion, resulting in a trade surplus of $140.48 billion. In other words, while the first half saw Chinese exports to the US decline, though not by too much, US exports to China collapsed quite sharply. In particular, US exports of agricultural products to China slumped over the same period.
Source: Global Times | 2019/7/18 21:38:41

China ready to counterattack as it adapts to US tariffs

The tit-for-tat trade conflict between the US and China of a magnitude and endurance the world has rarely witnessed before has entered a stalemate or seesaw phase.
Source: Global Times | 2019/7/18 18:28:41

Amazon's data deal invites DC scrutiny, consumers underpaid for information

Amazon.com's data deal is inviting DC scrutiny. As its executives appeared at an antitrust hearing in Congress alongside those from other tech firms, the e-commerce giant offered its customers $10 to track their web browsing. It's a smart way to grab business from rivals, and the price low-balls the value of user data. That's a demonstration of how dominance works.
Source: Global Times | 2019/7/18 18:28:40

Economic shift helps China gain bargaining power

For those who are eager to sell goods in China amid the trade war, we can tell them – don't rush.
Source: Global Times | 2019/7/17 20:10:27

Vietnam's export surge does not justify massive manufacturing relocation from China

Vietnam's export revenue in the first five months of 2019 has seen a 6.7 percent increase year-on-year. Against the backdrop of a global economic slowdown and sprawling trade protectionism, this export performance has outshone other countries. In contrast, China's exports within the same period have been fluctuating and waning. Some are worried about industries withdrawing from China. However, there is no need to get too anxious.
Source: Global Times | 2019/7/17 19:08:41

Pakistani grads from China vital for CPEC success

Pakistani students graduating from China are playing a vital role in promoting the deep-rooted friendship between China and Pakistan. The first group of Pakistani students came to China in 1964. Since then, there has been an increasing trend in the number of students from Pakistan studying in China. This number has witnessed a sharp increase in the last few years in particular. Under new policies launched by the Ministry of Education of China, which have attracted more students from countries and regions along the routes of the China-proposed Belt and Road Initiative (BRI), Pakistan has become one of the largest beneficiaries of the Chinese education system.
Source: Global Times | 2019/7/17 18:58:40

Morgan Stanley's Asian crown gets Bud-shaped dent as demand miscalculated

Morgan Stanley's Asian crown just got a Budweiser-shaped dent. Along with JPMorgan, the US bank was joint sponsor of AB InBev's now-scrapped listing of its Asia unit, which was intended to raise $9.8 billion. The setback takes the shine off its local league-table preeminence.
Source: Global Times | 2019/7/17 18:53:40

Internationalization of yuan can boost HK status as offshore financial hub

Beneath the recent unrest in the Hong Kong Special Administrative Region lie concerns about capital outflows. A private banking source in Hong Kong said that the super-rich have begun to shift their assets elsewhere, including to Singapore, the Straits Times reported.
Source: Global Times | 2019/7/16 20:24:20

China's single market still has great dividend potential in consumer sectors

Some people attribute the success of China's reform and opening-up to the “demographic dividend,” which is certainly not a comprehensive understanding. It would be a big mistake if we still regard the demographic dividend as a large supply of cheap labor. In my opinion, the broad concept of the demographic dividend should be classified into three levels: The first is the “cheap labor dividend,” the second is the “engineer dividend,” and the third is the “single market dividend.”
Source: Global Times | 2019/7/16 18:58:40

US-France digital clash inevitable as tensions rise

French senate approved a digital services tax on Thursday after the bill was passed by the lower house. Digital service providers, with revenue exceeding 750 million euros ($845 million) globally and at least 25 million euros revenue generated from France, are subject to a 3 percent tax.
Source: Global Times | 2019/7/16 18:18:40

Driverless Argonauts on the hunt for top valuation in uncertain market

Ford Motor Company boss Jim Hackett says the self-driving joint venture he struck with Volkswagen's Herbert Diess on Friday “instantaneously makes it the biggest platform” in the industry. Autonomous vehicles can potentially reduce congestion and traffic-related fatalities, improve carmaker margins and more. The trouble is that working out how to value these outfits is a quest in itself.
Source: Global Times | 2019/7/16 18:13:41

Rare earths can be deterrent without ban on exports

The Pentagon is rapidly assessing the rare-earths output in the US, according to Reuters. The move comes after China indicated that it will keep its options open for using rare-earth minerals as a weapon against the US in the trade war.
Source: Global Times | 2019/7/15 19:08:42

China's central bank needs to head off rising challenge posed by cryptocurrencies

Facebook's announcement of calling Libra a digital currency has sparked much debate, which is still continuing in the technology, finance and political fields. In addition to criticism toward data privacy and trading security, attention has been given to the future challenges to central banks' rights to issue currency. Some Chinese scholars and central bank officials have also weighed in on the issue.
Source: Global Times | 2019/7/15 19:08:41

AfCFTA offers renewed potential amid concerns

At the recent African Union (AU) 12th Extraordinary Summit, Nigeria and Benin signed the African Continental Free Trade Agreement (AfCFTA), increasing the trade bloc's membership to 54, in Niamey, capital of Niger.
Source: Global Times | 2019/7/15 18:23:40

Tokyo and Seoul can ill afford a standoff as rushing into second trade war looks reckless

A standoff between Tokyo and Seoul points to mutually assured damage. South Korean President Moon Jae-in could take aim at Japanese machinery, equipment and goods as payback for export curbs targeting South Korea's vital chip industry. That casts a shadow over $85 billion of bilateral trade at a time when both economies are already under significant pressure.
Source: Global Times | 2019/7/15 18:13:40

What are the trends that are shaping the future of China's manufacturing migration?

In recent years, migration of the manufacturing sector from the Chinese mainland has become a major concern, especially against the backdrop of the US-China trade war over the past year. Indeed, if manufacturing moved offshore on a large scale, the mainland would lose its status as the world's factory and, like many countries, would face a potential hollowing-out of the economy. In this context, the Chinese economy would lose not only growth momentum but also its status as a manufacturing and economic power.
Source: Global Times | 2019/7/14 19:53:40

Technology war can spur talent flow from US to China

Chinese telecom giant Huawei is planning extensive layoffs at its US operations, the Wall Street Journal reported over the weekend. But don't worry – Chinese-American researchers are welcome to come to China and work for domestic technology companies.
Source: Global Times | 2019/7/14 19:53:40