Global trade disruption is a symptom of a deeper malaise | Mohamed El-Erian

Resolving US-China trade war is not enough to ward off what many fear is a looming worldwide recession It is only a matter of time until the escalating tensions between China and the US prompt many more economists to warn of an impending global economic recession coupled with financial instability. On 5 August, Bloomberg News Larry Summers, a former US treasury secretary who was also closely involved in crisis-management efforts in 2008-09, recently The Only Game in Town, all of these recent developments and also, of course, the growing US-China tensions are related in a meaningful way to two basic and persistent features of the global economy since the 2008 financial crisis. The first is the prolonged period in which …

US labels China a currency manipulator as tensions flare

First such move since 1994 fulfills Trump campaign promise and comes as stock markets fall The US has labeled China a currency manipulator, in a move that brings already tense relations between the two countries to a boil. On Monday, the US treasury secretary, Steven Mnuchin, accused China of manipulating its currency to gain unfair competitive advantage in international trade. The US will now ask the International Monetary Fund to eliminate the unfair competitive advantage created by Chinas latest actions. It is the first such move since 1994 and came as international stock markets fell on fears of an escalation in the simmering conflict between the two trading superpowers. China allowChinese authorities dispute. The sharp 1.4% drop in the yuan …

‘Truth hurts’: China’s envoys try out Trump-style Twitter diplomacy

Beijings representatives abroad are harnessing social media to confront critics Chinese envoys are experimenting with a new kind of Trump-style public diplomacy Twitter spats. Twitter is banned in China, but Chinese diplomats abroad, not traditionally known for being outspoken, have started to use the platform to confront Beijings critics more directly and aggressively. Earlier this week, Zhao Lijian, deputy chief of mission to Pakistan, joined the fray while defending Beijings treatment of Uighurs, https://t.co/KIKanBjQ2L debt-trap diplomacy. Zhang, tweeting at Nasheed, wrote: What I cannot accept is continuous unverified and misleading info. to the public, which harms our friendly relations, adding that having a rational [dialogue] based on correct data was only a phonecall away. Zhang Lizhong (@AmbassadorZhang) Thank you, Mr. …

Surprise! Huawei Can Actually Innovateand Win Fans

Huawei doesn’t leap to mind as an innovative company. In the US, the Chinese telecom giant is best known for the government’s national security concerns—and allegations that it stole intellectual property from companies like Cisco and Motorola. Yet Huawei was the fifth-biggest research and development spender in the world in 2017, according to a European Union report. Its €11.3 billion ($12.9 billion) R&D spend that year outpaced Intel (€10.9 billion), Apple (€9.7 billion), and Nokia (€4.9 billion). Huawei claims its investments over the years have paid off in the form of 87,805 patents—11,152 of which were granted in the US. Now Huawei is trying to turn those patents into cash. This month Reuters reported that Huawei wants Verizon to pay …

Huawei Says US Sanctions Will Reduce Revenue by $30 Billion

Huawei may be feeling the sting of US efforts to rein in the Chinese telecom giant. In April, Huawei reported a 39 percent increase in first-quarter revenue, despite US efforts to dissuade allies from doing business with the firm. But the company now expects its revenue to decline to $100 billion this year from $107 billion last year, founder and CEO Ren Zhengfei said during an event Monday. Ren blamed the US decision to add Huawei to a list of companies that are essentially banned from buying US-made technology, including the software and microchips the company uses to build its smartphones and infrastructure gear. The bans will cost Huawei around $30 billion in revenue this year and next, Ren said …

‘No way to stop it’: millions of pigs culled across Asia as swine fever spreads

Experts say region is losing the battle to stop the biggest animal disease outbreak the planet has ever faced South-east Asia is battling to contain the spread of highly contagious African swine fever, known as pig Ebola, which has already led to the culling of millions of pigs in China and Vietnam. in Hong Kong two separate cases led to there being no fresh pork in the country for a week. White disinfectant powder is sprinkled on the soil around a pig farm in northern Chinas Hebei province. Photograph: Sam McNeil/AP But Pfeiffer was not optimistic Thailand which has more than 2m pigs could resist the pandemic spreading from neighbouring Vietnam and Cambodia, or China, for much longer, saying it …

China expected to retaliate over Trump tariff hike, economic adviser says

Larry Kudlow says We may know more today or this evening or tomorrow after Trump raises spectre of a full-blown trade war The US expects China to retaliate over the Trump administrations Talks ended on Friday and tweeted saying Beijing had deliberately sought to delay negotiations. China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky [and] have a Democrat win, he said. Kudlow told Fox no more talks were planned but also said there was a strong possibility Trump and Chinese president Xi Jinping will meet in Japan at [the] G20 summit at the end of June. In …

Thirty years on, the Tiananmen Square image that shocked the world

Photographer Jeff Widener explains how a series of mishaps meant it was almost the picture that got away A solitary figure in a white shirt and black trousers clutches a bag and stands in front of a column of halted tanks, a cluster of street lights floating to one side like balloons. The mans shoulders are rounded, Time magazines 100 most influential of all time that has become the most famous. Every Tank Man photo has a different flavour. I think I was lucky I was using such a fine-grained film. It allowed it to be blown up larger. I think mine also has a more Gandhi feel. He looks more vulnerable: a common man asking a question, like: why …

US warns Beijing’s Arctic activity risks creating ‘new South China Sea’

US secretary of state chides Chinas aggressive behaviour and also accuses Russia of provocative actions The US plans to beef up its Arctic presence to keep Russias and Chinas aggressive behaviour in check in the resource-rich region, the secretary of state, Mike Pompeo, has warned The region has become an arena of global power and competition owing to vast reserves of oil, gas, minerals and fish stocks, Pompeo said in a speech in northern Finland. Just because the Arctic is a place of wilderness does not mean it should become a place of lawlessness, he said. Speaking on the eve of a meeting of the eight members of the Arctic Council, Pompeo took on Beijing and Moscow. Chinas pattern of …

Revealed: new evidence of China’s mission to raze the mosques of Xinjiang

Guardian and Bellingcat investigation finds more than two dozen Islamic religious sites partly or completely demolished since 2016 Around this time of the year, the edge of the Taklamakan desert in far western China should be overflowing with people. For decades, every spring thousands of Uighur Muslims would converge on the Imam Asim shrine, a group of buildings and fences surrounding a small mud tomb believed to contain the remains of a holy warrior from the eighth century. Pilgrims from across the Hotan oasis would come seeking healing, fertility, and absolution, trekking through the sand in the footsteps of those ahead of them. It was one of the largest shrine festivals in the region. People left offerings and tied pieces …

China will build string of military bases around world, says Pentagon

Locations could include Middle East, Pakistan, and western Pacific to protect Belt and Road Initiative, report says The US Defense Department expects China to add military bases around the world to protect its investments in it ambitious One Belt One Road global infrastructure program, according to an official report released on Thursday. Beijing currently has just one overseas military base, in Djibouti, but is believed planning others, including possibly Pakistan, as it seeks to project itself as a global superpower. Chinas advancement of projects such as the One Belt, One Road Initiative (OBOR) will probably drive military overseas basing through a perceived need to provide security for OBOR projects, the Pentagon said in its annual report to Congress on Chinese …