Trade

China’s U.S debt talk reveals weak trade-war hand

10 Jan 2018

Beijing may slow or halt Treasuries purchases. It’s the biggest holder of Uncle Sam’s liabilities, so in theory the People’s Republic has leverage as the White House mulls imposing tariffs. As with other measures China could take, though, it would cause damage at home.

Sutherland embodied ups and downs of globalisation

8 Jan 2018

Former European Commissioner, trade chief and BP chair Peter Sutherland, who has died at 71, worked to make it easier for goods, capital and people to cross borders. His triumphs were blotted by corporate failures. Yet his legacy deserves to survive the current backlash.

Trump would be wise to ease up on Seoul

8 Jan 2018

Talks just kicked off to amend a trade pact with South Korea, one the U.S. president has threatened to terminate. The original deal did not live up to American expectations, but there are bigger items on the export agenda. And a united front against North Korea is more important.

Best of Breakingviews 2017: Our readers’ top picks

28 Dec 2017

From Snap's IPO to Saudi's economic transformation, readers’ taste for agenda-setting insight was diverse and voracious. Donald Trump's first year as U.S. president jostled for attention with bitcoin's coming wipeout, Chinese tech and, naturally, anything on Wall Street bonuses.

Canada will be biggest loser in U.S. trade spats

20 Dec 2017

Trump threatened China and Mexico with tariffs, but the real levies hit Canadian lumber and Bombardier jets. While Ottawa is pushing other trade deals, America is its biggest export market. Souring NAFTA talks and fights over dairy, wine and paper make it the chief target.

China’s belt will get tighter and its road bumpier

20 Dec 2017

Xi Jinping's ambitious infrastructure plan enters its fifth year with some notable struggles. Countries are pushing back for political and economic reasons while Chinese banks grapple with mounting debt. So-called Belt and Road projects require more of a team effort in 2018.

Ex-Im revives just as it’s least useful

19 Dec 2017

A Senate committee rejected the nomination of Scott Garrett, a vocal critic, to lead the bank. It’s a sign that Ex-Im is bouncing back from its nadir in 2015. But with the economy roaring and tax cuts coming, the result may be mostly a small stimulus for big firms like Boeing.

Trump’s China diagnosis falls short of a remedy

18 Dec 2017

The U.S. president is casting Beijing’s economic prowess as a national security threat. It may signal coming tariffs related to intellectual property and other issues. Yet aides say they also need China's help on North Korea. Increasing tensions just makes that more difficult.

Trump’s anti-WTO rhetoric hurts America first

11 Dec 2017

U.S. trade chief Robert Lighthizer has a tough message for the body’s biennial confab. The White House is also blocking new WTO appellate judges. Reforms are needed but America has won most of its complaints, including against China. Weakening it has consequences for U.S. firms.

Trump gives Xi first taste of trade acrimony ahead

29 Nov 2017

The afterglow of the U.S. president’s trip to China faded fast. Unimpressed by Beijing's progress on North Korea and market opening, he is taking an aggressive stance on aluminium dumping. This sets the stage for uglier, more economically significant fights on trade.

The Exchange: Jim Rogers

22 Nov 2017

The longtime Asia bull and Quantum Fund co-founder thinks the worst bear market of his lifetime is coming. He swung by our Hong Kong bureau to discuss the risks, as well as Trump’s Asia tour and why America could become its own worst enemy if it lets China dominate the region.

Breakdown: Redesigned TPP deal goes to 11

14 Nov 2017

The Pacific trade pact may be 70 pct less valuable in terms of global income. For Japan, Canada and nine others, though, good economic reasons exist to proceed. It's a defence against lopsided bilateral deals. And TPP could yet add partners to recapture many of the lost benefits.

China’s vitamin collusion is a bitter trade pill

9 Nov 2017

Beijing wants to be treated as a rule-abiding market economy. But in an ongoing legal dispute, Chinese officials say they pushed domestic vitamin makers to coordinate prices in the U.S. market. China’s unwritten trade rules are often more important than the written ones.

Wilbur Ross deflates Trump’s rich cabinet

8 Nov 2017

The president tapped wealthy execs for their supposed smarts and dealmaking skills. News that the U.S. commerce secretary may have been less than truthful about his holdings and net worth undermine that argument. The blowback may give pause to other wealthy pretenders to high office.

Congressional stick may beat Trump’s China bombast

7 Nov 2017

The president has talked tough about punishing the nation’s largest trading partner, but mostly avoided measures like tariffs. Now some U.S. lawmakers want to make it hard to buy American companies. Such bipartisan legislation poses a bigger risk to Beijing than the White House.

Abe best off keeping Trump out of economic rough

3 Nov 2017

The Japanese premier has established an uncommonly good rapport with his U.S. counterpart. At their upcoming meetings, including on the golf course, Shinzo Abe would be well-served focusing on North Korea. Trade and currency matters only risk creating a momentum-slowing wedge.

Wall Street loses in search for easy China wins

1 Nov 2017

Energy and industrial companies like GE will get to cozy up to Beijing’s new leaders during Trump’s Asia trip, but financial services aren't part of the group. That reflects White House desires for low-hanging deals to tout, and dim hopes for improved market access.

Tesla could hit second gear with Shanghai factory

22 Oct 2017

Elon Musk may soon be able to build his electric cars in China. That's essential for catching up or keeping pace with rivals in the fast-growing market. It'll also take pressure off production trouble in the United States. A troubling tariff problem, however, is apt to remain.

Trump’s hardline NAFTA stance could benefit Asia

11 Oct 2017

Canada and Mexico oppose a U.S. push to boost North American content for autos and impose a new 50 percent standard for U.S.-sourced parts. The White House says it will reduce the U.S. trade deficit. But the push could increase costs for automakers and force them to move abroad.

Japan is developing a quality-control problem

10 Oct 2017

Kobe Steel admits it sold substandard metals to hundreds of clients. After Takata’s lethal airbags and testing scandals at various carmakers, this is yet another blemish on Japan’s reputation for product quality. Something is going badly wrong with corporate cultures.