Tuesday December 11, 2018

August 2018 News

July News | September News

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U.S.-China Tariffs Continue
China Announces Successful Test of Hypersonic Aircraft
Chinese Leaders Criticized
Tsai Ing-Wen Visits U.S., Meets with Congressmen
El Salvador Cuts Ties with Taiwan

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U.S.-China Tariffs Continue

President Trump has threatened to raise the proposed tariffs on $200 billion of Chinese imports from 10 percent to 25 percent. In order to be enacted, the proposed tariffs must first be subject to public comment. This has been pushed back one week and will now begin on September 5.

While it has been reported that U.S. and Chinese officials are privately discussing the resumption of trade negotiations, some experts believe that negotiations will not take place until after the U.S. mid-term elections or until the U.S. economic growth shows signs of slowing due to the disruptions in trade.

The Trump administration has proposed sending $12 billion to farmers affected by Chinese tariffs. Some Republicans in Congress are critical of the idea, describing it as “welfare” or “misplaced policy,” but this action does not need Congressional approval.

Update, August 3: In response to President Trump’s threat to raise the proposed tariffs on $200 billion of Chinese imports, China announced they had prepared a list of American imports totaling $60 billion on which it will impose tariffs ranging from 5 to 25 percent.

Update, August 16: The U.S. and China will be holding another round of trade talks at the end of the month. Chinese representatives, led by Vice Minister of Commerce Wang Shouwen, will be in Washington, DC to meet with their American counterparts, led by Under Secretary of Treasury for International Affairs David Malpass. This will be the first official trade negotiation in nearly two months.

The next $16 billion in U.S. tariffs on China is scheduled to take effect on August 23. Beijing has already announced their counter tariffs.

Update, August 24: The two days of trade talks between the U.S. and China concluded on August 23 after little progress. There may not be additional trade talks until after the November midterm elections in the U.S.

Also on August 23, the U.S. enacted the $16 billion in additional tariffs and China reciprocated that same day. Preparations for the proposed tariffs on $200 billion of Chinese imports are ongoing.

USCPF Article on U.S.-China Tariffs

July’s News on U.S.-China Tariffs | September’s Trade News

Read More:

CNBC – China trade relations get nastier, but US officials hold out hope for NAFTA deal
NPR –
Trump Administration Threatens Even Higher Tariffs On China
Politico – Trump tariffs sting farmers, businesses from sea to shining sea
USA Today – Donald Trump threatens billions more in China trade tariffs; Beijing says it won’t respond to U.S. ‘blackmail’

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China Announces Successful Test of Hypersonic Aircraft

On August 6, the Chinese Academy of Aerospace Aerodynamics announced that a successful test of their Xingkong-2 (Starry Sky-2) was conducted on August 3. This hypersonic aircraft uses the shockwaves created by breaking the sound barrier to increase its lift. During its test flight the craft reached Mach 6 (4,563 mph).

The U.S. and Russia are also working to develop and test hypersonic weapons in what some are calling an arms race. While the U.S. has developed anti-missile systems over the past few decades, this technology has been criticized for being too inaccurate against conventional weapons. The current U.S. anti-missile technology would likely be unable to detect and neutralize hypersonic missiles.

Read More:

Business Insider – China hails a ‘successful’ test of a new hypersonic weapon that could slip a nuke past US defenses
China Daily
Superfast aircraft test a ‘success’
CNNChina claims to have successfully tested its first hypersonic aircraft
QuartzChina just tested a hypersonic weapon the US can’t defend against
South China Morning PostChina’s hypersonic aircraft, Starry Sky-2, could be used to carry nuclear missiles at six times the speed of sound

 


 

Chinese Leadership Criticized

In a rare show of dissatisfaction, critics in China have blamed nationalistic propaganda for provoking the U.S. and chided Chinese leaders for misjudging the situation surrounding the continuing trade war. Chinese state media, the People’s Daily, has responded to the “Chinese exceptionalism” complaints by comparing China to an elephant as it is unable to hide its size and strength. The article goes on to attribute the trade war to the U.S.’s fears about China’s ascension to the world stage.

Read More:

New York Times – Trump’s Trade War Is Rattling China’s Leaders
Reuters –
Handling of U.S. trade dispute causes rift in Chinese leadership
South China Morning Post – Beijing blames trade war on US fears over ‘unprecedented opponent’
Washington PostChina has a new message for the U.S.: Don’t be alarmed, we’re not that great.

 


 

Tsai Ing-Wen Visits U.S., Meets with Congressmen

Taiwanese President Tsai Ing-Wen visited Los Angeles from August 12 – 14. Tsai met with three U.S. House representatives, spoke at an event at the Ronald Regan Presidential Library, and visited various sites around Los Angeles. Tsai then traveled through Houston, before continuing on to visit two of Taiwan’s remaining allies, Belize and Paraguay.

The Chinese foreign ministry has lodged an official complaint with the U.S. government. While in LA, President Tsai visited a Taiwan-based bakery-cafe chain, 85C Cafe. This chain has been the target of criticism from Chinese-media and has been removed from several Chinese food delivery services.

Read More:

The Diplomat – China Takes Revenge for Tsai Ing-wen’s US Trip – Via a Taiwanese Cafe Chain
South China Morning Post – Senior US politician calls for Taiwan’s president to be granted trip to Washington
South China Morning Post – US denies change to ‘One China’ policy after Taiwanese President Tsai Ing-wen’s speech in California

 


 

El Salvador Breaks Ties with Taiwan

On August 21, El Salvador broke diplomatic ties with Taiwan in favor of establishing an official diplomatic relationship with the People’s Republic of China. This is the third time in 2018 that Taiwan has lost a diplomatic ally. The number of countries Taiwan has full diplomatic relations with is down to 17. This number is likely to fall further as China continues to pressure Taiwan’s remaining allies.

Update, August 24:  The White House released a statement on August 23 condemning El Salvador’s new relations with China and accused China of political interference in the Western Hemisphere. The White House will be reevaluating the U.S.’s relationship with El Salvador.

May 1, 2018 – Dominican Republic cuts ties with Taiwan
May 24, 2018 – Burkina Faso cuts ties with Taiwan

Read More:

New York TimesEl Salvador Recognizes China in Blow to Taiwan
ReutersTaiwan says China ‘out of control’ as it loses El Salvador to Beijing
South China Morning PostEl Salvador cuts Taiwan links as island loses yet another ally

 

Page Updated: August 24
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