Archive for Business and Finance

Opinion | China Deserves Donald Trump – By Thomas L. Friedman – The New York Times

Thomas L. Friedman

By Thomas L. Friedman

Opinion Columnist,  May 21, 2019,   1420

 President Trump insists that his tough approach to China will benefit the United States.CreditEric Thayer for The New York Times

“A U.S. businessman friend of mine who works in China remarked to me recently that Donald Trump is not the American president America deserves, but he sure is the American president China deserves.

Trump’s instinct that America needs to rebalance its trade relationship with Beijing — before China gets too big to compromise — is correct. And it took a human wrecking ball like Trump to get China’s attention. But now that we have it, both countries need to recognize just how pivotal this moment is.

The original U.S.-China opening back in the 1970s defined our restored trade ties, which were limited. When we let China join the World Trade Organization in 2001, it propelled China into a trading powerhouse under rules that still gave China lots of concessions as a developing economy.

This new negotiation will define how the U.S. and China relate as economic peers, competing for the same 21st-century industries, at a time when our markets are totally intertwined. So this is no ordinary trade dispute. This is the big one.”

Source: Opinion | China Deserves Donald Trump – The New York Times

Posted in: China, Thomas Friedman, Trade and Trade Policy, United States

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Trump Administration Could Blacklist China’s Hikvision, a Surveillance Firm – The New York Times

“WASHINGTON — The Trump administration is considering limits to a Chinese video surveillance giant’s ability to buy American technology, people familiar with the matter said, the latest attempt to counter Beijing’s global economic ambitions.

The move would effectively place the company, Hikvision, on a United States blacklist. It also would mark the first time the Trump administration punished a Chinese company for its role in the surveillance and mass detention of Uighurs, a mostly Muslim ethnic minority.”

Source: Trump Administration Could Blacklist China’s Hikvision, a Surveillance Firm – The New York Times

Posted in: China, David Lindsay, Trade and Trade Policy, United States

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As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – By Li Yuan – The New York Times

By Li Yuan


“China has spent nearly two decades building a digital wall between itself and the rest of the world, a one-way barrier designed to keep out foreign companies like Facebook and Google while allowing Chinese rivals to leave home and expand across the world.

Now President Trump is sealing up that wall from the other side.

Google on Monday began to limit the software services it provides to Huawei, the telecommunications giant, after a White House order last week restricted the Chinese company’s access to American technology. Google’s software powers Huawei’s smartphones, and its apps come preloaded on the devices Huawei sells around the world. Depending on how the White House’s order is carried out, that could come to a stop.

For Huawei, the big impact will be abroad, since Chinese customers already have limited access to Google’s services. Google’s move will have its biggest effect in places like Europe, where it has emerged as a big smartphone seller. Other companies will inevitably follow. In effect, the move puts pressure on Huawei’s international expansion dreams.

If China and the United States have begun a technological Cold War, then the Huawei order can best be seen as the beginnings of a digital Iron Curtain. In this potential vision of the future of technology, China will continue to keep out much of the world. The United States and many other countries, goes this thinking, will in turn block Chinese technology.”

Source: As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – The New York Times

Posted in: China, Foreign Affairs and U.S.ForeignPolicy, Trade and Trade Policy, United States

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As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – The New York Times

By Li Yuan

China has spent nearly two decades building a digital wall between itself and the rest of the world, a one-way barrier designed to keep out foreign companies like Facebook and Google while allowing Chinese rivals to leave home and expand across the world.

Now President Trump is sealing up that wall from the other side.

Google on Monday began to limit the software services it provides to Huawei, the telecommunications giant, after a White House order last week restricted the Chinese company’s access to American technology. Google’s software powers Huawei’s smartphones, and its apps come preloaded on the devices Huawei sells around the world. Depending on how the White House’s order is carried out, that could come to a stop.

For Huawei, the big impact will be abroad, since Chinese customers already have limited access to Google’s services. Google’s move will have its biggest effect in places like Europe, where it has emerged as a big smartphone seller. Other companies will inevitably follow. In effect, the move puts pressure on Huawei’s international expansion dreams.

If China and the United States have begun a technological Cold War, then the Huawei order can best be seen as the beginnings of a digital Iron Curtain. In this potential vision of the future of technology, China will continue to keep out much of the world. The United States and many other countries, goes this thinking, will in turn block Chinese technology.

Source: As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – The New York Times

Posted in: China, Trade and Trade Policy

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As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – By Li Yuan – The New York Times

By Li Yuan

“China has spent nearly two decades building a digital wall between itself and the rest of the world, a one-way barrier designed to keep out foreign companies like Facebook and Google while allowing Chinese rivals to leave home and expand across the world.

Now President Trump is sealing up that wall from the other side.

Google on Monday began to limit the software services it provides to Huawei, the telecommunications giant, following a White House order last week that restricted the Chinese company’s access to American technology. Google’s software powers Huawei’s smartphones, and its apps come preloaded on the devices Huawei sells around the world. Depending on how the White House’s order is implemented, that could come to a stop.

For Huawei, the big impact will be abroad, since Chinese customers already have limited access to Google’s services. Google’s move will have its biggest effect in places like Europe where it has emerged as a big smartphone seller. Other companies will inevitably follow. In effect, the move puts pressure on Huawei’s international expansion dreams.

If China and the United States have begun a technological Cold War, then the Huawei order can best be seen as the beginnings of a digital Iron Curtain. In this potential vision of the future of technology, China will continue to keep out much of the world. The United States and many other countries, goes this thinking, will in turn block Chinese technology.”

Source: As Huawei Loses Google, the U.S.-China Tech Cold War Gets Its Iron Curtain – The New York Times

Posted in: China, Information Technology, Trade and Trade Policy, United States

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In China Some Fear the End of ‘Chimerica’ – The New York Times

By Li Yuan

“Wu Shichun is one of countless Chinese entrepreneurs who over the past four decades have prospered from access to American customers and money.

Today, as the American government threatens to take that away, the serial entrepreneur and venture capital investor is fundamentally rethinking how he does business.

One of his portfolio companies designs and makes fashion products in China, then sells to American consumers on Amazon.com. Another, a vape device maker, sells most of its products in the United States. The third, which makes metal materials for electronic manufacturers, exports 40 percent of its production there. All three would be hit by new American tariffs.

“From now on I’ll have to invest in companies that focus on the Chinese market,” said Mr. Wu, 42.

“I hope China and the U.S. can find a better way to coexist,” he said. “It doesn’t have to be mutually destructive.””

Source: In China, Some Fear the End of ‘Chimerica’ – The New York Times

Posted in: China, Trade and Trade Policy, United States

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Trump’s Trade War Threat Poses Problems for China and Investors – The New York Times

“The prospect of a wider trade war between the United States and China sent global financial markets whipsawing on Monday and could force Beijing to make difficult decisions if it hopes to preserve its nascent economic recovery.

President Trump upended what appeared to be steady progress toward reaching a trade pact after he threatened on Sunday to impose still more tariffs on Chinese-made goods unless Beijing moves closer to a deal. Liu He, the Chinese vice premier overseeing economic policy and Beijing’s lead trade negotiator, had been set to travel to Washington for talks scheduled for Wednesday that were widely seen as the potential last round before reaching a trade deal.

Source: Trump’s Trade War Threat Poses Problems for China and Investors – The New York Times

David Lindsay:  Good piece. Here are two top comments I endorse.

Baltimore 16
Adrian MI

Please, if you must quote Mr. Trump’s tweets, immediately bracket them with corrective disclaimers. Tariffs ARE NOT paid to the US Treasury. They are paid by the consumer in the form of a higher purchase price, whether buying parts for assembly in the US or the finished goods. The costs are not directly borne by China, except the demand for Chinese products drops due to the increased price. I’m sure people read the tweets and assume it’s a statement of fact.

Concerned citizen commented 6 hours ago

Concerned citizen
Lake Frederick VA

As Trump manipulates the stock market with his comments, now is the time to investigate whether he or his friends are profiting from advance knowledge of his tweets

McGloin commented 6 hours ago

McGloin
Brooklyn
Times Pick

Trump does not understand how the Chinese think and does not understand how they keep winning. The main concern of the Chinese leadership is to avoid public embarrassment (“save face”). Trump thinks that publicly embarrassing them (“making them lose face”) is going to make them do what he wants them to do. It’s not going to work. The Chinese are telling him in negotiations (according to this article) that they will do what he wants, but it can’t be done through the legislature because it will be too embarrassing, so he publicly demands that it be done through the legislature. The Chinese don’t have a trade surplus because of tariffs. The Chinese have a trade surplus because they pick winners and they back them with public money, investing in new technologies, often stolen from America. If America invested in the technologies that we invented, like solar power, we would dominate the fields that we invented. But for decades, Republicans (and the centrist Democrats that compromise with them) have refused to “pick winners and losers,” letting the Chinese government pick winners, them, and losers, us. Notice none of this involves embarrassing public attacks on public officials. It is all done subtly. While the USA is spending trillions attacking countries around the world, the Chinese are quietly going around the world investing in third world countries, while the Party of Trump insists that investing in foreign countries is a waste of money. Learn from the Chinese

Posted in: China, Trade and Trade Policy, Trade and Trade Policy

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Opinion | The Richest Man in China Is Wrong. 12-Hour Days Are No ‘Blessing.’ – The New York Times

Bryce Covert

By Bryce Covert

Contributing Opinion Writer

CreditIrene Rinaldi

 

 “Jack Ma, the richest man in China and founder of the e-commerce company Alibaba, is a big fan of extreme overwork. He recently praised China’s “996” practice, so called because it refers to those who put in 12-hour days — 9 a.m. to 9 p.m. — six days a week. This “is not a problem,” he said in a recent blog post, instead calling it a “blessing.”

The response from others in China was swift. “If all enterprises enforce a 996 schedule, no one will have children,” one person argued on the same platform. “Did you ever think about the elderly at home who need care, the children who need company?” It even prompted a response from Chinese state media, which reminded everyone, “The mandatory enforcement of 996 overtime culture not only reflects the arrogance of business managers, but also is unfair and impractical.”

Managers who think like Mr. Ma can be found the world over. Here at home, Elon Musk, a co-founder of Tesla, has argued that “nobody ever changed the world on 40 hours a week.” Uber reportedly used to use the internal mantra “Work smarter, harder and longer.” (It’s now just “smarter” and “harder.”) The company has also rebranded second jobs as clever “side hustles.” WeWork decorates its co-working spaces with phrases like, “Don’t stop when you’re tired, stop when you are done.” Other tech and business gurus try to sell us on “toil glamour.” “

Source: Opinion | The Richest Man in China Is Wrong. 12-Hour Days Are No ‘Blessing.’ – The New York Times

Posted in: Business and Finance, China, Civil Rights, Labor Relations

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China Experiences a Fracking Boom- and All the Problems That Go With It – The New York Times

“GAOSHAN, China — The first earthquake struck this small farming village in Sichuan Province before dawn on Feb. 24. There were two more the next day.

Sichuan is naturally prone to earthquakes, including a major one in 2008 that killed nearly 70,000 people, but to the rattled villagers of Gaoshan, the cause of these tremors was human-made.

“The drilling,” Yu Zhenghua said as she tearfully surveyed her damaged home, still officially uninhabitable five days later.

The drilling Ms. Yu referred to was hydraulic fracturing, or fracking. The technology, which has revolutionized the production of natural gas and oil in the United States, has created a boom in China, too, and with it many of the controversies that have dogged the practice elsewhere.

In the hours after the quakes, thousands of residents converged outside the main government building in Rong County to protest widespread fracking in the rolling hills and valleys here now yellowing with the flowering of rapeseed.

A shale gas drilling station in Rong County. In the last decade, the China National Petroleum Corporation alone has invested $4 billion in fracking shale gas in the Sichuan Basin.CreditGilles Sabrie for The New York Times
 Image
A shale gas drilling station in Rong County. In the last decade, the China National Petroleum Corporation alone has invested $4 billion in fracking shale gas in the Sichuan Basin.CreditGilles Sabrie for The New York Times

The protesters jostled with security guards along a sliding metal gate and dispersed only after officials announced they had suspended fracking operations of a regional subsidiary of China National Petroleum Corporation, the country’s largest oil and gas producer.”

Source: China Experiences a Fracking Boom, and All the Problems That Go With It – The New York Times

Posted in: Business and Finance, China, Climate Change, Environment

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Opinion | America the Cowardly Bully – By Paul Krugman – The New York Times

Paul Krugman

By Paul Krugman

Opinion Columnist

Image.  President Trump’s trade belligerence has done lasting damage to America’s reputation.CreditCreditPete Marovich for The New York Times

“This is the way the trade war ends. Not with a bang but with empty bombast.

According to multiple news organizations, the U.S. and China are close to a deal that would effectively end trade hostilities. Under the reported deal, America would remove most of the tariffs it imposed last year. China, for its part, would end its retaliatory tariffs, make some changes to its investment and competition policies and direct state enterprises to buy specified amounts of U.S. agricultural and energy products.

The Trump administration will, of course, trumpet the deal as a triumph. In reality, however, it’s much ado about nothing much.

As described, the deal would do little to address real complaints about Chinese policy, which mainly involve China’s systematic expropriation of intellectual property. Nor would it do much to address Donald Trump’s pet although misguided peeve, the imbalance in U.S.-China trade. Basically, Trump will have backed down.

If this is the story, it will repeat what we saw on the North American Free Trade Agreement, which Trump denounced as the “worst trade deal ever made.” In the end, what Trump negotiated — the U.S. Mexico Canada Agreement, or U.S.M.C.A. — was very similar to the previous status quo. Trade experts I know, when not referring to it as the Village People agreement, call it “Nafta 0.8”: fundamentally the same as Nafta, but a bit worse.”

Source: Opinion | America the Cowardly Bully – The New York Times

Posted in: Trade and Trade Policy, Trade and Trade Policy

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