Trade

Chinese visitors can hit nerve tariffs don’t reach

5 Apr 2018

Levies on imports will slow the flow of TVs and medical devices into the United States. They could also thin the already-falling influx of tourists from China. America collects more from them than from all its exports of soybeans, and that number could pass $50 bln by 2022.

China brings a gun to its U.S. trade gunfight

4 Apr 2018

Beijing proposed duties on $50 bln of American exports hours after the U.S. said it would tax the same value of Chinese exports. Doing so may hit China’s economy, but that’s the point. The readiness to go toe-to-toe implies Trump’s trade war will be neither good nor easy to win.

U.S. levies on China showcase the widget economy

4 Apr 2018

Washington wants to apply 25 pct duties to 1,300 Chinese imports. Politicians love high-tech industries, but this list is dominated by mundane products like dental tools and floor polishers. It’s a reminder of the crucial role everyday items play in economic growth.

China’s soybean trade card is difficult to play

3 Apr 2018

New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.

CME stretches to kill NEX bidding war

29 Mar 2018

The Chicago Mercantile Exchange owner is buying Michael Spencer’s broker for 3.9 billion pounds. Meshing U.S. Treasury futures trading with NEX’s currency and bonds business is a good idea. The hefty premium may deter rival bidders but requires the deal to be perfectly executed.

Kim Jong Un’s change of heart might be for real

28 Mar 2018

The despot is acting suspiciously nice, mending fences with Seoul and Beijing and warming to U.S. President Trump. This could be another ruse to lift sanctions. Yet there are reasons to believe a more secure Kim is ready to start turning North Korea into a more normal country.

Japan steels itself for worse on trade

26 Mar 2018

U.S. metals tariffs won’t hurt Tokyo much. But trade tensions can cause indirect harm too, since Japan is a big supplier to China, and market jitters unhelpfully boost the yen. President Trump’s scorn for a close ally hints at pressure to come over cars, agriculture and currency.

China trade spat is bigger than Trump

22 Mar 2018

The U.S. president ordered sweeping duties and investment restrictions. A trade swipe against the PRC has been brewing for years. The issues at stake – state capitalism, intellectual-property theft and national champions – are deep-seated, and tariffs may prove largely symbolic.

Chinese drone giant DJI charts a risky flight path

22 Mar 2018

The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.

How Washington could really fix trade with China

22 Mar 2018

President Trump is rolling out tariffs and wants a $100 bln cut to the deficit. Yet Beijing’s import-substitution plans, forced tech transfers and IP policy are the real problems. By ditching them China would justify a truce, and reinforce its claim to free-trade leadership.

Hadas: Taking on the Chinese new world order

21 Mar 2018

The People’s Republic lacks the political and cultural appeal to supplant the U.S. as all-round hegemon. Even so, it could soon set many global economic standards. The right response is cognitive empathy and careful choice of battles. Western countries too often choose wrong.

China’s lithium trouble in Chile hints at more

15 Mar 2018

A government agency wants to block Tianqi Lithium's bid for a stake in $13 bln rival SQM, arguing the market is too concentrated. China seldom gets pushback in resources M&A. Beijing can expect more potholes as it tightens its grip on ingredients for electric vehicle batteries.

China and U.S. trade places in 5G space race

14 Mar 2018

America is nudging Qualcomm into the role of a national tech champion. China is a potent rival, and has pushed home champs Huawei and ZTE into global leaders. The trouble is that Beijing is expert at bending firms to its will, while Washington is grappling to define its new role.

Guest view: The case for Trump’s de-globalization

12 Mar 2018

The U.S. president’s tariffs on steel and aluminum have precedents – Reagan and Bush No. 2 took similar actions. Critics worry that the globalization project of 1991-2016 is falling apart. Yet there could be benefits for the world economy and U.S. living standards.

M&A rebound is good sign for Indo-Japanese ties

9 Mar 2018

Nippon Steel is part of a bid for bankrupt rival Essar. That would mark a revival of Japanese deals in India after flops with Docomo and Daiichi Sankyo. Healthy financial relations are a prerequisite for creating the harmonious "Indo-Pacific” that Tokyo and Washington both want.

Viewsroom: Trump slaps tariff fear on markets

8 Mar 2018

Imposing levies on steel and aluminum has lost the president his economic adviser, ex-Goldman No. 2 Gary Cohn. That has shocked investors out of complacency. Also: Italy’s elections leave fringe parties in charge. And big deals may be back on the agenda for the mining industry.

U.S. metal tariffs may not be biggest trade worry

8 Mar 2018

The president’s steel and aluminum levies have rattled markets and nudged his economic adviser to quit. A probe into Chinese intellectual-property policy could prove more devastating, though. It commands wide support and could inflict broad trade and investment disruption.

Hassett stacks up as next Trump economics counsel

8 Mar 2018

Among those who might replace Gary Cohn, current CEA head Kevin Hassett stands out as a thoughtful conservative economist, well placed to moderate the president’s protectionist impulses. While he has aired the occasional dubious view, that might actually boost his chances.

Dollar is Trump’s measuring stick, and cudgel

7 Mar 2018

Stocks fell after President Donald Trump’s top economic adviser resigned, but a better gauge of his performance is the dollar. It has dropped nearly 10 pct versus major currencies since he took office. This market no-confidence vote nonetheless serves Trump’s purpose on trade.

Trump tariffs risk more than just a new trade war

7 Mar 2018

Europe will retaliate if U.S. President Donald Trump slaps tariffs on steel and aluminium imports. A transatlantic trade fight is just one danger. By invoking a little-used national security loophole, Trump is setting a precedent of how to subvert international commerce rules.