Asian markets were mixed Monday (Aug 12) with investors gripped by concerns about the US-China trade war after Donald Trump said he was prepared to walk away from next month's planned talks. Traders have been spooked after Donald Trump said the US was "not ready" to make a trade deal with China AFP/Nicholas Kamm The president's comments spooked US investors and added to the sense of pessimism across world trading floors after the White House last week announced fresh tariffs on China and labelled it a currency manipulator. Beijing responded by halting all purchases of US agricultural goods. Trump said Friday it would be "fine" if the negotiations were called off, telling reporters: "We're not ready to make a deal but we'll see what happens." He added: "We have all the cards. We're doing well." The negativity is being slightly offset by central banks' shift to softer monetary policy though there are growing concerns about the outlook for the global economy. There was also some … [Read more...] about Asian markets mixed as dealers fret over US China trade talks
Apple supplier raises fears over us china trade spat
US China trade spat, Iran tensions to dominate weighty G20
US President Donald Trump Trump has hit US$200 billion of Chinese imports with levies and has threatened to impose them on an additional US$300 billion (Photo: AFP/Nicolas Asfouri) With hotspots North Korea and Venezuela and a slowing world economy also high on the agenda, the two-day gathering of leaders from the world's group of 20 leading nations in Osaka, Japan, could be one of the most pivotal in years, analysts say. Trump last week sparked hopes for a detente in the long-running trade war when he said he would hold "extended" talks with Xi after a "very good telephone conversation". For his part, Xi told Trump that "China and the US will both gain by co-operating and lose by fighting", according to Chinese state media. The two sides were close to a deal when talks broke down abruptly last month and markets are hoping the leaders' first face-to-face talks since December, when they met at the last G20 in Argentina, can break the deadlock. Trump has hit US$200 billion of Chinese … [Read more...] about US China trade spat, Iran tensions to dominate weighty G20
Vietnamese companies urged to prepare for impacts of US-China trade spat
With trade protectionism increasing, Vietnamese companies should prepare for trade-related lawsuits and disputes but also capitalise on possible opportunities from the ongoing US-China trade war, a top trade remedy official has said. Speaking at a meeting last Friday, Chu Thang Trung, deputy head of the Trade Remedies Authority of Viet Nam, said: “The trade war between the two largest economies has affected the flow of goods with the US increasing its trade safeguard investigations of major exporters, including Viet Nam. “The trade war has caused the two countries to increase exports to third countries, creating pressure on other markets, including Viet Nam, and exacerbating the trend of trade protection and defence globally.” Since the US is Viet Nam’s largest market and China is Viet Nam’s largest seller, it would surely be affected by the confrontation, according to Trung. If they do not make peace soon, the risk of Vietnamese exporters being … [Read more...] about Vietnamese companies urged to prepare for impacts of US-China trade spat
US China trade talks set to open in Beijing
US Trade Representative Robert Lighthizer (left) and Deputy Trade Representative Jeffrey Gerrish leave a hotel with members of a negotiation team in Beijing. (GREG BAKER/AFP) Pressure to seal an accord ahead of a March deadline lessened before the talks as US President Donald Trump indicated on Tuesday in Washington he was open to extending a trade truce, depending on progress in Beijing. Trump in December put on hold sharp tariff hikes on US$200 billion of Chinese imports to allow time for negotiators to work out a resolution to the thorny spat. The two countries have already slapped tariffs on more than US$360 billion in two-way trade, which has weighed on their manufacturing sectors and shaken global financial markets. US officials including US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will meet with China's top economic czar Liu He and central bank governor Yi Gang as the two sides aim to build on progress made in Washington last month. Lower … [Read more...] about US China trade talks set to open in Beijing
Will foreign investors relocate to Vietnam during the US-China trade war?
VietNamNet Bridge - Multinationals will have to think carefully about whether to relocate to Vietnam to avoid any negative impact from the US-China trade war, experts say. Multinationals will have to think carefully about whether to relocate to Vietnam International and Vietnamese experts have predicted that there will be a wave of ‘US-China trade war refugees’ coming to Vietnam. As the US has imposed higher taxes, Chinese goods have become less competitive in price in the US market. In such a context, manufacturers can continue making products in Vietnam for export to the US without having to bear high tax rates. Vietnamese experts think that foreign investors will flock to Vietnam in the context of the trade war but wonder if Vietnam is capable of absorbing the huge investment capital flow in the time to come. Nguoi Lao Dong newspaper quoted Takahisa Onose from the Japanese Entrepreneurs Association in HCM City as saying that most Japanese enterprises … [Read more...] about Will foreign investors relocate to Vietnam during the US-China trade war?
Vietnam footwear exports benefit from US-China trade spat
According to customs statistics, Vietnam’s footwear exports in the first nine months of this year were worth $11.74 billion, a 10.2 percent year-on-year increase. Its exports to China in the period have risen by 28.5 percent, to Japan by 14.7 percent, and to the U.S. by 13.5 percent. Vietnam is the second biggest exporter of footwear to the U.S. behind China, shipping 404 million pairs of shoes last year. The upward trend is likely to continue, too, as rising wages in China increase the cost of goods produced there and the country is thus directing more of its manufacturing resources toward higher-priced goods like electronics, according to the global footwear news outlet Footwearnews (FN). Foreign companies are moving to other countries like Vietnam to cut cost. Adidas CEO Kasper Rorsted told Reuters last May that his company is shifting sourcing of footwear from China to Vietnam. Vietnam has in fact overtaken China as its top supplier, with Vietnamese factories producing … [Read more...] about Vietnam footwear exports benefit from US-China trade spat
US-China trade spat will exert exchange rate pressure on Vietnam
After GDP growth reached 6.98 percent in the first 9 months of 2018, the highest in the past 8 years, it is relatively clear that the Government will reach its 6.7 percent growth target by the end of the year. Only a 6.11 percent growth in the fourth quarter to meet this objective. Usually, the fourth quarter will have the highest quarterly GDP of the year, thanks to the rise in exports, production and consumption. Consequently, some experts are optimistic that this quarter’s growth is likely to exceed the third quarter (6.88 percent) to bring GDP in 2018 to 6.9 – 7 percent as predicted by major international financial institutions. In its forecast, HSBC Vietnam made a rather safe prediction that GDP growth in 2019 would stand at 6.7 percent, equivalent to the bank’s forecast of growth for this year. In line with this, GDP per capita is expected to improve from $2,321 in 2017 to $2,734 next year. However, inflation will rise to 4.2 percent, the bank said. … [Read more...] about US-China trade spat will exert exchange rate pressure on Vietnam
US-China trade spat looms over regional WEF meeting
The escalating trade spat between Washington and Beijing has caused global ripples -- and is being closely watched in Southeast Asia where many export-focused economies are set to gain from the fallout. Trump has already imposed 25 percent customs duties on $50 billion worth of Chinese goods -- triggering a tit-for-tat response from Beijing -- and vowed last week to increase tariffs to hit $200 billion in Chinese imports "very soon." The mounting dispute looms over a regional World Economic Forum (WEF) kicking off in the Vietnamese capital Wednesday morning where leaders from the Association of Southeast Asian Nations (ASEAN) and business executives are meeting. "ASEAN countries don't want to count their chickens before they hatch, but I think they see it on a net basis as a gain for them because it means shifting manufacturing into Southeast Asia that was...(earlier) in China, " Fred Burke, managing partner at Baker McKenzie in Vietnam, told AFP. Rising labour costs in the world's … [Read more...] about US-China trade spat looms over regional WEF meeting
Use international pacts to end US-China trade war: Vietnam
By Khanh Lynh  July 19, 2018 | 08:56 pm GMT+7 A truck drives past container boxes at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China, February 13, 2017. Photo by Reuters/Aly Song Vietnam believes that all countries involved in the ongoing US-China trade war should resolve issues in accordance with international agreements. The resolution of issues should also take each party’s benefit into account and strive to contribute to regional and global development and prosperity, Foreign Ministry spokeswoman Le Thi Thu Hang said at a regular press briefing Thursday. The latest trade spat began on July 6, with the United States slapping a 25 percent tariff on more than 800 Chinese product categories worth around $34 billion, claiming that China had violated intellectual property rights and escalated the U.S.’s trade deficit. The U.S.’s trade deficit with China ballooned to a record $375.2 billion last … [Read more...] about Use international pacts to end US-China trade war: Vietnam
US China trade war fears escalate as threats ramp up
US-China trade war fears escalate as threats ramp up Trump remained defiant and argued the pain of the dispute will pay off in the end, while China said that his administration would only "shoot itself in the foot" if it didn't back down from the "extremely wrong" threats. Treasury Secretary Steven Mnuchin acknowledged there was a risk of a trade war, but said the intention is to defend US interests and the administration remains willing to negotiate. But top White House economic advisor Larry Kudlow reversed himself, and warned that the tariff threat is not a negotiating tactic. Global stock markets were unhappy with the turn of events, as Wall Street dropped more than two percent, following European and Asian markets lower. In the wake of the decision to impose steep tariffs on steel and aluminium imports, the United States on Tuesday published a list of US$50 billion in Chinese goods to be hit by tariffs over what Washington says is widespread theft of intellectual property and … [Read more...] about US China trade war fears escalate as threats ramp up