US shutdown ‘won’t affect tarrif truce’: experts

By Leng Shumei Source:Global Times Published: 2019/1/13 21:53:39

Public confidence in Chinese financial market feared


Chinese experts warned of the effect of the US government shutdown on public confidence in Chinese financial markets. But they believe the shutdown will have little impact on the 90-day truce in tariffs between China and the US.

The partial US government shutdown entered a record 23rd day on Sunday.

Wu Xinbo, director of Fudan University's Center for American Studies, told the Global Times on Sunday that as long as US President Donald Trump is determined to solve the two countries' trade frictions, the US government's shutdown will have no impact on China-US negotiations.

"Although the two sides' meetings may be delayed due to the lack of hands during the shutdown, the result of the negotiations will not be affected," Wu said.

Chinese Vice Premier Liu He plans to visit the US on January 30 and 31, but it could be delayed by the US government shutdown, The Wall Street Journal reported Thursday. 

Zha Xiaogang, a research fellow at the Shanghai Institute for International Studies, agreed with Wu, saying that the shutdown will not directly affect China-US ties.      

However, he warned that if the ongoing US government shutdown has no end in sight, China will suffer from an uncertain global market.

"An extended shutdown will add to the uncertainty in the US markets, which is vital to global markets. Thus, in the long run, the Chinese financial market may likely suffer from declining public confidence," Zha said.

The shuttering of the US Securities and Exchange Commission could ripple throughout the markets, including slowing some highly anticipated stock offerings by companies such as Uber and Lyft, the Washington Post reported on Friday.

A CNBC report on Wednesday warned that the US is in danger of losing its triple-A sovereign credit rating later this year and the ongoing government shutdown could soon start to impact the country's ability to pass a budget, citing James McCormack, global head of sovereign ratings with ratings agency Fitch. 

The shutdown, if it lasts until the end of this month, will also coincide with the deadline of the extradition of Huawei chief financial officer Meng Wanzhou, who was arrested by Canada based on a US request on December 1. 

Some experts predict that Canada will release Meng if the US does not require extradite before deadline.

 Ni Feng, deputy director of the Chinese Academy of Social Sciences' Institute of American Studies, said that "it is still hard to say how will the case go as we do not know how the US judicial department is arranging the case in specific."

Meng is scheduled to stand on court on February 6.

Although reports of dirty and unguarded US national parks swept Chinese social media, plans by Chinese tourists to visit the US appear to have not been affected. 

Beijing-based Damei tourism agency told the Global Times on Sunday that their tour groups to the US will go on as planned. But some tourist spots will lack staff. 

Leading Chinese tour operator CYTS told the Global Times on Sunday that the shutdown has not affected the processing of US visa applications. 

Meanwhile, Chinese people are concerned about the condition of the three pandas after the Smithsonian National Zoo turned off the live panda cam amid the ongoing partial government shutdown. "We can take the pandas back if the US really lacks the money," Sina Weibo user toufatongxiangqingjia said. 

The US had shut down in October 2013 that lasted for 16 days, leading to a delay of the second round of Transatlantic Trade and Investment Partnership of negotiations for the Trans-Pacific Partnership, Xinhua News Agency reported.


Newspaper headline: US shutdown ‘won’t affect truce’


Posted in: DIPLOMACY

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