Never miss a story

Get subscribed to our newsletter

Employees stand next to a container ship at Ningbo port in Ningbo, Zhejiang province, June 21, 2012. VOA

Beijing, Dec 21, 2016: The possibility of a trade war between the United States and China loomed large over the horizon after the U.S. electoral college confirmed Donald Trump’s presidency on Monday. China is expected to take a series of defensive and retaliatory measures to counter any U.S. moves to restrict the role of Chinese goods and currency movements in the American economy, as Trump has promised to do.

NewsGram brings to you current foreign news from all over the world.

“In the event of a trade war with the United States, China’s response would go well beyond tariff increases,” said Mark Williams, Chief Asia Economist for Capital Economics. “U.S. companies would find their products and operations in China subject to tighter regulation that hampered their capacity to do business there.”

A staff member works at a service center for repairing Cadillac cars at its dealership in Beijing, China, March 14, 2016. VOA

“U.S. exports of cars and aircraft would be in the firing line,” he said. China might also subject U.S. companies to tighter regulation that hampers their capacity to do business. Beijing may also encourage its exporters by offering tax rebates to overcome any reduction in export demand in the U.S., Williams said.

In informal discussions, Chinese officials say there is a lot of uncertainty about how the new U.S. president will handle relations with China, and preparations are being made to deal with varied scenarios.

WATCH: China Assesses Future Relations With US Under Trump

Mixing politics and economy

In the past, China has responded with trade restrictions on several countries for political reasons. For example, Norway for awarding the Nobel Peace Prize to a dissident writer or giving a visa to Tibet’s Dalai Lama. Trump’s recent tweet questioning the One-China policy concerning Taiwan has already caused a stir in the Chinese Communist Party.

Talking about investments by China’s companies in the United States, Trump recently said, “They haven’t played by the rules, and I know it is about time they are going to start”. Some members of the U.S. Congress have also called for a review of the policies concerning Chinese investments.

People visit heavy machinerys of Sany at Bauma China 2016, The 8th International Trade Fair for Construction Machinery in Shanghai, China, Nov. 22, 2016. VOA

This elicited a strong response from Wang Jianlin, China’s richest man, who acquired movie studios and other properties in the United States. He says restricting Chinese companies would hurt American jobs instead of helping the country. Wang said he has invested $10 billion and employs 20,000 people in the United States, who will have “nothing to eat” if restrictions are placed on Chinese businesses.

Wang Jianlin, chairman of Wanda Group, speaks during a signing ceremony for a strategic partnership between FIBA and Wanda Group in Beijing, June 16, 2016. Wanda Group has purchased Dick Clark Productions for $1 billion. VOA

During the election campaign, Trump also promised to declare China a currency manipulator. The Chinese yuan has considerably devalued, owing to market pressure. Analysts are divided on whether he would still go ahead with his threat after the recent devaluation.

NewsGram brings to you top news around the world today.

“I am sure that the U.S. under Trump will focus unrelentingly on the exchange rate,” Kerry Brown, Professor of Chinese Studies and Director of the Lau China Institute at King’s College, London. “It is a huge anomaly in the 21st century that the world’s second biggest economy does not have a market set exchange rate … In that sense, China is really a freeloader, in the eyes of its American opponents, and they will want to see a quick move to rebalance the Chinese currency, and do something about this anomaly”.

US business concerns

More than 1,500 Chinese companies established operations employing 80,000 workers in the United States, according to the American Chamber of Commerce in China.

U.S. businesses operating in China have their own fears of moves that cause instability to trade and investment relationships.

“Isolating or penalizing China will not serve America’s interests, and only with engagement and commerce will the two largest economies of the world make progress to reach a consensus on contentious issues such as national and regional security, market access and industrial policies, internet censorship, cybersecurity, and terrorism,” James Zimmerman, chairman of AmCham, China told VOA.

“We do indeed recognize that talking tough is a lot easier than thinking tough and making tough decisions, which is what presidents actually have to do,” he said adding, “The chamber has long supported maintaining stability in the region, and we expect the new U.S. administration to respect the status quo”.

Penalty corners

Who suffers most in the case of a trade war? China would be the first to be hit, and more severely because the United States is a major market for Chinese goods. America buys three times more than what it sells to China.

Check out NewsGram for latest international news updates.

People walk past a boutique of the luxury jewelry retailer Tiffany & Co. in Beijing, China, Dec. 1, 2016. VOA

But Beijing can take solace in the fact that Trump would end up hurting the American consumer if he imposed a 45 percent duty on Chinese goods, as he has promised to do.The most important items in the Chinese export basket are mobile phones, tablets/laptops and network equipment. A higher tax on these goods would ultimately be paid by U.S. consumers, Williams of Capital Economics said.

Williams does not see the incoming President slapping the 45 percent tax on Chinese goods as he had promised, but hostilities can break out anytime, he warns. (VOA)


Photo by Flickr.

Swastika, one of the sacred symbols used by many religions like Hinduism, Jainism, and Buddhism.

The symbol of Swastika is known to signify peace, prosperity, and good fortune in the religious cultures of Eurasia. In fact, this symbol is considered very significant in Hinduism, Buddhism, and Jainism. But, at the same time, it has become one of the most misunderstood religious symbols and has been globally banned in many countries.

The reason why the symbol of Swastika is banned in many countries is because of its association with Adolf Hitler's extreme political ideology, Nazism, as Swastika as its official symbol.

Keep Reading Show less

Since emerging into the public eye with a historic gold medal at the junior world championships in 2016, he has maintained a high level of performance

India celebrated a historic day on August 7, as 23-year-old Neeraj Chopra became the first Indian to win an Olympic gold medal in athletics. In the men's javelin throw event, he achieved his greatest triumph, throwing the javelin 87.58 meters on his second try.

Neeraj Chopra was born on December 24, 1997, in Khandra village in Haryana's Panipat district. He grew up in a Haryanavi family of farmers. He is the brother of two sisters. He graduated from Dayanand Anglo-Vedic College in Chandigarh and is now enrolled in Lovely Professional University in Jalandhar, Punjab, pursuing a Bachelor of Arts degree. Chopra was bullied due to his obesity as a kid, which prompted his father to enroll him in a nearby gym. He then joined a gym in Panipat, where Jaiveer Choudhary, a javelin thrower, noticed his potential and coached him. When the 13-year-old Chopra finished training under Jaiveer for a year, he was enrolled at the Tau Devi Lal Sports Complex in Panchkula, where he began training under coach Naseem Ahmed.

Keep Reading Show less
wikimedia commons

Gothic dresses displayed in a store

The emergence of the Industrial Revolution in Victorian England brought with it many apprehensions and fears that translated into a new genre in literature: the gothic. Today, the idea of the gothic does not have to much with literature as much as it is associated with fashion.

The Victorians began to wear black more often during the Industrial Revolution to hide the stains of soot on their clothes. Many of the working class were employed in factories. They were newly introduced to technology, the idea of coal as fuel, and the working of machines to serve a certain purpose. This kind of work was hard and messy. Wearing light colours burdened the tired folk when the stubborn stains did not get washed away.

Keep reading... Show less