China may retaliate to US Huawei ban using rare earth metals

Rare earth metals are minerals which are very hard to extract and in which China is one of the world’s biggest supplier of, these metals are used in various products like mobile phone cameras and automobile catalytic converters.

The US is one of the world’s biggest consumers of rare earth metals coming from China. Media in China has now suggested that China may limit exports of rare earths to the US escalating the trade war even further, after the US banned Chinese telecommunications company Huawei.

80% of Chinese rare earth metal exports are to the US and the limitation of these metals will spark price increases for a number of tech products made by US companies. President Donald Trump avoided putting rare earth metals on the tariff list for this very reason.

So far consumer and producers in both countries are bearing the brunt of the US-China Trade war, which is also propelling a negative outlook on global and tech markets. The trade war is escalating and both sides are claiming to have the upper hand, with no end in sight while holding the world hostage.

 By Mokgethi Mtezuka

The Growing Tech Cold War between the US and China

The Trade war between the US and China has spilled over in to the tech industry, with the US claiming that China’s advancement in 5G technology is a national security threat which resulting the banning of Chinese tech company Huawei.

The ban which prevents Huawei from accessing US made Hardware and Software services could lead to China build those previously outsourced products internally. This would lead to a possible global split in tech hardware, software and general compatibility.

For example the Huawei won’t be able to use the smartphone operating system Android owned by Google as a result of the ban this will lead to many of Huawei’s smartphone users unable to access other Google services like gmail and chrome.

Chinese companies could fill this gap by building out their own hardware and software capabilities, resulting in competition for the dominate US tech companies, this could see consumers forced to pick whether they want the US tech or Chinese tech.

 

By Mokgethi Mtezuka

The NBD has the potential to reshape the world of development finance

 The New Development Bank has the potential to change the world of development finance, says Professor Karin Costa Vazquez, in an article on the Financial Express.

Prof. Vazquez is the Assistant Dean for Global Engagement, Executive Director, Center for African, Latin American and Caribbean Studies at School of International Affairs, O.P Jindal Global University.

The NDB has been in operation for less than four years, however, it has thus far received an AA+ rating international credit rating and built a portfolio of 35 projects worth USD 9.2 billion – nearly half the World Bank’s lending in 2018, reports the Financial Express.

READ MORE: S&P rates Brics New Development Bank AA+

The Professor outlined the key features that set the NBD part; the bank is committed to close the infrastructure gap in developing and emerging countries, it is focused on sustainable development and the bank’s equity in power-sharing.

 

By: Kgothatso Nkanyane

Brazil announces plans to drop WTO sugar case against China

“Brazil and China have reached an understanding regarding the consultations made at the World Trade Organisation (WTO) on sugar,” Brazil’s Foreign Affairs and Agriculture ministries said in a statement, on Tuesday.

READ MORE:Brazil’s Vice President’s Visit To China

Brazil opened a case last year, questioning China’s anti-dumping tariffs on sugar. The Brazilian government sought the panel at the WTO investigate China’s sugar trade policies. The policy reduced Brazil’s sugar sales to the Asian nation – China used to be one of its top clients.

READ MORE: NDB President And Vice-President Of Brazil Meet

Brazil said without elaborating that, “there will be no need for the implementation of a panel at the WTO”.

 

Source: Reuters

US companies fear retaliation from China after Huawei Ban.

A trade lobby group representing American companies in China has real concerns that china will retaliate to the US ban on Huawei. China so far has retaliated to all US sanctions, tariffs or aggravations in a similar fashion.

The ban not only affects Huawei’s ability to access Android services which is mainly software, but will limit its access to US hardware tech companies as well. This creates problems not only for Huawei but for US tech companies who could lose Huawei’s business and may never regain it again.

China also has a number of measures which it could implement to restrict US companies which operate or are reliant on Chinese companies. The US-China trade war only seems to be escalating as now the US is willing to use Chinese corporations as leverage to gain an upper hand.

By Mokgethi Mtezuka

NDB President And Vice-President Of Brazil Meet In Shanghai, Discuss Bank’s Strategy And Operations In Brazil

( Xangai – China, 20/05/2019) Vice-Presidente da República, Hamilton Mourão, durante Encontro com o Presidente e a nova diretoria do Novo Banco de Desenvolvimento (NDB) Foto: Adnilton Farias / VPR

Strengthening the New Development Bank’s strategy and its operations in Brazil was the main focus of discussion between Mr. K.V. Kamath, the NDB President and Gen. Hamilton Mourão, the Vice-President of Brazil during their meeting on 20 May 2019. The meeting was held at the Bank’s office in Shanghai, during the official visit of the Vice-President to the People’s Republic of China.

“The NDB is a 21st century bank, designed to provide the necessary financial support to emerging economies. We welcome the upcoming inauguration of the NDB Americas Regional Office, based in São Paulo, with a branch in Brasília. Such Office will allow the NDB to become more familiar with the Brazilian business culture and regulatory environment, thus contributing to our efforts to foster investment in infrastructure and sustainable development,” said Gen. Hamilton Mourão.

Mr. K.V. Kamath briefed Gen. Hamilton Mourão on the progress of the NDB, including the growth of the Bank’s portfolio of approved projects.

“It’s a privilege to host Gen. Hamilton Mourão in NDB’s Headquarters. The NDB is fully committed to supporting Brazil’s agenda of infrastructure investments as formulated by the Brazilian Government with a greater participation of the private sector, in line with the Bank’s mandate of mobilizing resources for infrastructure and sustainable development. We are looking forward to opening the Bank’s Americas Regional Office later this year, which will play an important role in project identification and preparation,” said Mr. K.V. Kamath

 

RELEASED BY: NEW DEVELOPMENT BANK (NDB) 

Mayor Ying meets Brazil vice president

Shanghai Mayor Ying Yong met Brazilian Vice President Antonio Hamilton Martins Mourao and his delegation in Shanghai yesterday.

READ MORE: Brazil’s Vice President’s Visit To China

Enterprises from Brazil and Shanghai should deepen cooperation and expand investment to achieve a win-win situation, Ying said, while welcoming more enterprises from Brazil to participate in the 2nd China International Import Expo to be held in Shanghai later this year.

Brazil hopes to join hands with China to push forward cooperation and exchanges, as well as share management experience to realize common development with Shanghai as the city has achieved significant progress in social and economic spheres, Mourao said.

Mourao is on a formal visit to China to attend the 5th meeting of the Sino-Brazil High-level Coordination and Cooperation Committee.

Shanghai Vice Mayor Wu Qing and Gilberto Fonseca Guimaraes de Moura, consul general of Brazil in Shanghai, also attended the meeting.

 

RELEASED BY: shine.cn

The US-China Trade War forecasted to get worse

The US-China trade war is “going to get worse before it gets better,” an expert said on Tuesday.

US President Donald Trump announced that he would increase tariffs on $200 billion in goods from 10% to 25%. China responded by upping the tariffs on $60 billion of U.S. goods. The relations between the two countries are on a decline – trade talks between the US and China stopped abruptly.

American multinational technology company that specializes in Internet-related services and products, Google revoked Huawei’s operating license for its Android devices, a source familiar with the matter said on Sunday – Googles decision is believed not to be separate from the trade war.

READ MORE:Google cuts Huawei’s access to androids licencing

 

Additional reporting: CNBC

By: Kgothatso Nkanyane

Brazil’s Vice President’s Visit To China

Hamilton Mourao Photographer: Sergio Lima/Bloomberg

Hamilton Mourao, Brazil’s Vice President is in China, in an attempt to strengthen relations. Mourao arrived in China on Sunday and will be concluding his visit on 24 May.

Chinese President Xi Jinping and CPPCC Chairman Wang Yang are holding high-level political and economic talks with the Brazilian leader. General Mourao has been attending cultural and economic events in China.

Brazil hopes to further strengthen its relationship with China. Brazilian President Jair Bolsonaro is scheduled to visit China later this year.

READ MORE:Brazil’s vice President to visit China next Month

Chinese president Xi will travel to Brazil in November for the BRICS summit.

READ MORE:Brazil confirms date for the 11th BRICS Summit

 

By: Kgothatso Nkanyane

Google cuts Huawei’s access to androids licencing

The US-China trade war is escalating and Chinese telecommunication giant Huawei has now become a casualty to the US technology trade ban with China. Alphabet the parent company of Google has suspended Huawei’s smart phone division from accessing Android services.

Android which is also owned by Google will be restricted its service licence from Huawei which could have big implications in the future of the smart phones manufacture as well as future phone revenues. Google has stated that the restrictions are in line with US government policy imposed on Chinese technology companies.

The reason for the technology ban is because of China’s alleged abuse of US intellectual property. For consumers of Huawei smart phones this means that future updates of their android software may be disable, Huawei will still have access to Android Open Source Project (AOSP) licence to develop its software.

The AOSP licence does not encompass applications such as Gmail, YouTube, and the Chrome browser according to businesstech.co.za; these applications require a commercial agreement with Google.

By Mokgethi Mtezuka