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

China-US re-engage in new batch of trade talks

Chinese and US delegates are meeting in Beijing to hash out some of their trade difference and possibly put an end in the trade war. The Trade War between the world two biggest economies has entered a new year and 2019 both countries are aiming to come to some real agreement.

US president Trump and Chinese president Xi Jinping announced in December that the two super economies came to a truce. So far both sides have praised the talks as positive and constructive and both sides are actively engaged and are working to come to a resolution.

According to Asian financial markets have reacted positively to the meeting and discussion between the countries.

The talks will come to close tomorrow with both countries expected to refrain from issuing new tariffs and mitigate any further disruption to global financial market as well as the global economy.

By Mokgethi Mtezuka

Former Canadian Diplomat detained in China

A former Canadian Diplomat has been detailed in China, this comes just week after the CFO of Huawei was arrested in Canada for alleged US sanctions violations. The US-China trade tensions are now spilling over into other areas, as both countries now engaging in a tit for tat.

Chinese President Xi Jinping met with US President Donald Trump on the sidelines of the G20 summit  and Trump had announced that both countries had reached a truce. The tensions however, are escalating even further.

According to a Chinese court announced a ban on the import and sale of almost all iphones models.

The banned on iPhone was mostly specific to older iPhone using the older operating system. This new escalation is worrying as it looks like each country is now targeting specific individuals, diplomats, officials, organisations from each others country.  


By Mokgethi Mtezuka

China and India reached an agreement on border issues

China’s Foreign Minister Wang Yi  had a meet with India’s National Security adviser Ajit Doval on Saturday in the capital of southwest China’s Sichuan. China and India reached an agreement on their border issues.  

The countries decided to follow in the footsteps of Chinese President Xi Jinping and India’s Prime Minister Narendra Modi to resolve their disputes, while growing China-India relations. According to a statement released by the Chinese Foreign Ministry, Modi and Xi promote a process of special representative talks in order to reach fair, reasonable and mutually acceptable solutions as soon as possible.

Both countries agreed to peaceful talks through diplomatic channels. The border vowed to improve communication and coordination when dealing with arising issues. People to people exchanges and border trade are to be grown in a bid to improve relations and create a peaceful atmosphere for negotiations.



US and China to meet for security talks on Friday

A Chinese delegation will be travelling to Washington DC to meet with US official to hold security talks. These talks were postponed due to rising tension in trade between the US and China, as well as sanctions – the US put on China over Russian weapons purchase.

The talks will also be taking place before the Chinese president Xi Jinping and US president Donald Trump meet at the G20 summit in Argentina 30 November to 1 December. According to Trump and Jinping have been communicating over the phone.

The China-US relationship has been going through a lot of pressure in recent month,  with China expecting fresh tariffs from the US. The dialogue between the two countries will be welcomed not only by business and industry in both countries but other stakeholder indirectly affected.


By Mokgethi Mtezuka’  

Putin praises Russia-China relations

Russia’s President Vladimir Putin and Yang Jiechi a member of the Communist Party of China (CPC) Central Committee Political Bureau, had meeting last Thursday at the Valdai International Discussion Club. The Russian President after the meeting express his excitement with how the China-Russia relations are advancing and developing.

Vladimir Putin said that Russia is working to accomplish agreements made between him Chinese President Xi Jinping, at the Eastern Economic Forum.

Putin has also noted that the recent trade war between US and China provide opportunity for Russia in entering the Chinese market, by take newly opened specified Chinese markets. The One Belt, One Road initiative has also become important to the alleviation of economic constraints.

Industries like soybeans and aircraft construction are possible areas where Russia could replace US imports. Russia is working to replace US farms and supply China with Soybeans as well as replacing Boeings by delivering different ranges of aircraft.

Russia-China cooperation in the military-technical industry is also an important area for Russia with Sales and technology exchanges.  Putin also called for the development of infrastructure and transport routes, by developing Trans-Siberian railroad and Baikal Amur mainline.



China cancels security talks with the US

The Chinese government has cancelled their planned security talks  with US Secretary of Defence Jim Mattis. The meeting which was planned for October has not been rescheduled and the reason for the cancellation is still to be determined.

There has been tensions surrounding China-US relations in recent months with escalating tariffs on Chinese import to the US resulting in a trade war. Other causes of the tension are the US sanctions on Chinese military for purchasing Russian weapons and the territorial disputes in South China Sea.

 These ever-rising tension might escalate and spiral out of control with the countries continue with retaliatory measures. Both the US government and Chinese government have not yet comment on the cancellation. But it is believed that the tensions between the two superpowers is the main reason for this cancellation.

The Chinese government did reiterate that it will not be forced or blackmail in to yielding over pressure created by the trade war.



US and China issue new tariffs on each other

The US-China trade war took another turn on Monday as both countries slapped each other with new tariffs. China has accused the US of engaging in Trade bullying by intimidating countries into submission. China has also stated its very willingness to retaliate if it calls for it.

China though is still open to trade negotiations with the US only if there is equal respect among both countries. The new tariffs on Chinese goods will cost $200 Billion. The retaliation tariffs on US made products amounts to $60 Billion coming in to effect on Monday.

Beijing has warned the US that it will respond to any increase in levied tariffs accordingly. This will nevertheless result in higher prices for Chinese goods like vacuum cleaners, home modems and routers. For the US and it is an increase in price in China for US made products like liquefied natural gas and certain types of aircraft.

US President Donald Trump has also threatened China with possible complete tariffs on all Chinese goods if the Chinese government continues to retaliate.




US sanctions China for purchasing Russian weapons

USA has placed sanctions on the Chinese military for purchasing Russian jets and surface-to-air missiles. The reason for the sanctions is the on-going conflict in Ukraine and the USA has stated that the purchase contravenes sanctions the US has already placed on Russia.

The sanctions impact then Chinese Equipment Development Department (EDD) and its head Li Shangfu, who transacted the deal buying 10 Russian Sukhoi Su-35 fighter jets and S-400 missiles and have now been blacklisted.

The sanctions will impact EDD or Mr Li   in that assets they hold in the U.S. will be frozen or prohibited from being used in business, as well as the EDD will barred from exporting and prevented from utilizing the US financial system. Sanctions applied by the US are in accordance with the Countering America’s Adversaries Through Sanctions Act (Caatsa).

The USA has also blacklisted 33 people and entities associated with Russian military and intelligence. It’s widely expected that these sanction won’t prevent Russia from selling weapons with Asia the most important foreign market for Russian arms making 80% of its sales since 2000. Along with China, India and Vietnam are the main Asian parties purchasing Russian made weapons.



China, Russia agree to advance sub-national cooperation

Chinese President Xi Jinping and his Russian counterpart, Vladimir Putin, on Tuesday called for promoting sub-national cooperation to cement bilateral relations and benefit the two peoples.

The two heads of state made the remarks while attending a roundtable meeting on regional cooperation between the two countries on the side-lines of the fourth Eastern Economic Forum (EEF), which is running from Tuesday to Thursday in Vladivostok in Russia’s Far East.

Noting that China and Russia are each other’s biggest neighbouring country and most important comprehensive strategic partner of coordination with extensive common interests, Xi said it is conducive to jointly addressing external risks and challenges and boosting common development and revitalization for the two sides to strengthen cooperation and deepen the integration of their interests.

Sub-national cooperation plays an important part in bilateral relations, and cooperation plans between the two countries should rely on their local regions, be implemented in local regions and benefit local regions, Xi said, stressing that the closer the sub-national cooperation is, the more solid the foundation of the China-Russia mutually beneficial cooperation will become.

For future cooperation at sub-national levels, the Chinese president proposed that local governments should strengthen overall planning and coordination, optimize policies, forge more partnerships, and create a better business environment and more convenient conditions for the companies of the two countries to invest in each other’s regions.

He called for innovating the ideas for cooperation, expanding the areas for cooperation, better using the platforms and mechanisms for cooperation, and exploring new ways to advance regional cooperation.

Xi also asked local governments to give full play to their complementary advantages and their distinctive sectors, push for more precise ways of cooperation, and create highlights in cooperation.

In addition, he called for increasing people-to-people and cultural exchanges, cementing the mainstream public opinion and social foundation for cooperation, and promoting institutionalized and regular exchanges in culture, tourism, education and media at sub-national levels.

Xi said that it is the right time for the two countries to strengthen regional cooperation as he and Putin had agreed to designate 2018 and 2019 as the years of China-Russia local cooperation and exchange.

The governments of the two countries will support their local regions in making the pie of cooperation bigger and sharing the fruits of cooperation, Xi said, while expressing the hope that the representatives of Chinese and Russian regional governments at the roundtable can grasp the opportunity to usher in a new era in China-Russia sub-national cooperation and contribute more to bilateral relations.

Pointing out that sub-national cooperation is an important part of the Russia-China comprehensive strategic partnership of coordination, Putin said he is delighted that the local regions of the two countries have carried out close economic and trade cooperation as well as people-to-people and cultural exchanges.

The Russian government welcomes Chinese businesses to invest in the country and is willing to continue to offer favourable conditions to strengthen sub-national cooperation between the two countries, he said.

Under new circumstances, Russia and China should improve connectivity, promote trade and investment liberalization and facilitation, deepen friendship between the two peoples, and push for more results from sub-national cooperation that can benefit the two peoples, Putin said.

The heads of nine Chinese provincial-level regions and 13 Russian federal subjects took part in the roundtable meeting.

Xi arrived in the port city of Vladivostok on Tuesday to attend the EEF. He will address the plenary session, the main event of the forum, on Wednesday.

The EEF was launched in 2015 on the personal initiative of Putin. Xi’s attendance will be the first by a Chinese head of state at the forum.

After attending the roundtable meeting, the two heads of state visited “The Far East Street” exhibition showcasing the rich local cultural exchanges between the two countries and investment opportunities in Russia’s Far East regions.


Ministry of Foreign Affairs of the People’s Republic of China